Poolside cabana, $200 a day. Plane tickets to your destination of choice, $750. Vacationing without worrying about putting a dent into your finances, priceless.
For those fortunate enough, vacations and getaways can easily fit in their budgets. For the rest of us, without the appropriate planning, it can truly be a hardship to budget for a vacation. But if you start saving now and plan ahead, a fiscally worry-free vacation is really not out of reach.
Plan ahead. Research the cost of your vacation and put a savings plan together that aims to cover most to all of your vacation expenses.
Whether you make a lump sum or monthly deposits into an account, make sure you research the best bank product that will get you the most attractive interest rate available and allow you to reach your goal to pay for your dream vacation. Don't forget to consider time and how early you need to access your funds when creating your savings plan and choosing your bank product. For instance, if you only have five months until your winter getaway, a 9- or 12- month CD would not be a good choice to use to save for this trip. In this case, high-yield savings or money market accounts or short-term CDs would be better options to consider.
There are many great rates out there, along with promotional offers that will provide you with the best return. Compare the best deals for your financial profile.
Schedule automatic deposits now to ensure your savings will continue to grow. The fastest way to reach your savings goal is to start now and contribute regularly, and automatic transfers will ensure this happens. For example, depositing $1,000 into a savings account earning 3.25 percent will yield only about $30 in one year. However, if you schedule $200 to be deposited into the same savings account every month, your account will total nearly $3,500 by the end of the year!
What are you waiting for? The sooner you start, the sooner you'll reach your goal, and the sooner you'll be relaxing at your dream destination!
Source: Informa Research Services
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