How many times have you maxed out your credit card on vacation?  We have!

Below, we list some helpful tips in planning for financial expenditures, vacations to be exact. Sometimes, even if you KNOW you have budgeted and saved, unexpected events can really drive up vacation costs.   I know it’s really hard to plan for the unexpected but we are going to teach you how!

We vacationed at Disney as the last time of a family of three, with me six months pregnant; our son got extremely sick, my husband went out at 11pm to pick up medication when our cars entire electrical system shorted out on him and killed the engine in the middle of an intersection, he had no power and no breaks! We had to tow the vehicle to a repair shop only to find out that the extremely dangerous situation was caused by an empty gas tank! WHAT!  Turns out our gas tank had been siphoned in the parking lot and my husband didn’t notice when he went to get the medicine… sick son, towed vehicle…money, money, unexpected money!

The above story is why any financial advisor would tell you to save at least six months of income and at least a thousand dollars for emergencies!!  So, let’s be clear, I’m not here to reinvent the wheel.  People have already said these things a million times in hundreds of different ways!

I know I have trouble wrapping my head around all the financial details that require my attention, so I need to lay it out simply and efficiently so I can get a handle on it quickly, and so my stress level stays low when crazy situations happen.  (The Braxton Hicks I had during that trip were no joke!)

After that vacation, we decided to start a savings account purely dedicated to our vacations!  We have a set amount we save each month, which we let build over 6 months to a year, and that is the money we use purely for vacation!  People have different ways to save, some use a jar or an envelope in their home to collect this money, we prefer a saving account that builds interest at our banking facility.  Even 0.02 cents in interest is more than nothing.  I say all of the above to offer this…

Saving for Vacation:

• Decided on a monthly amount that works with your budget and start putting money aside to make financing a vacation easier!  We chose a saving account that builds interest with our bank that is separate from our other savings accounts, but there are lots of ways you can save your money.
• On top of your budgeted monthly vacation account, put a jar in a central location and collect loose change and found dollars! (Found dollars apply to the dollar you found in the couch or the coat you just pulled out of the closet, but it also refers to the extra money you find in your budget at the end of the month.)  This jar is not your emergency fund, unlike the movie UP, don’t smash it with a hammer when your tire goes flat….you should have an emergency fund for that, and if you don’t, start one at the same time you start your vacation account!)
• Sell some items you may no longer need or use; add this extra income to your jar or your account.
• Set a weekly budget for groceries, coupon and save where you can. The extra money left over is put in your vacation account or jar. (this is a hard one that I have not mastered but here is a great website that can help you in this area, Couponing To Disney, the principles can apply to any vacation destination.)
• A Credit Card (Dave Ramsey would shake his fingers at us!) is another way to help finance a vacation.  This only applies if you can be fiscally responsible enough to pay it off every month.  Our card gives us 1-2% back on our everyday purchase, the money we earn is what we use on vacation!
• Have a cushion.  However much you want to save for a vacation, add-on an addition 300-1000 dollars!  Call this your “EVF: Emergency Vacation Fund!”  This is only for unexpected emergencies, like missing your plane or having your car break down! This amount should never be seen as expendable money in regards to your vacation, but only as back up in case of the unexpected.
• Vacation Club:  the upfront cost is sometimes overwhelming.  We bought into ours when we had two jobs and no kids! But the savings on the back side for us have been worth it.  Do your research and find a reputable company like DISNEY/RCI if you are going this route, and realize that you won’t see your savings upfront for a while.  We bought into the Disney Vacation Club, and our points allow us to take several vacations a year without calculating room cost, which makes the extra we save, go a little farther.
• Auto deductions: It always helps if you auto deduct the funds from your checking account each pay period. Cause, let’s be honest, you typically won’t spend what isn’t there.  So if you’re able, have the funds automatically deducted each month.  However, DON’T forget it is being pulled out and budget like the money is there!  (No one wants an over-drafted account; you just spent the money you were trying to save, and now your bank is topping it off with an overdraft fee..ouch!)

Whatever way you choose to save money understand that this is a medium-term goal and you have to be committed to its accomplishment.  Life is unpredictable so be prepared for bumps in the road on this journey…if you fall away from saving get back up and start where you left off! I know, with a lot of commitment and a little effort, you can meet your goals and give you and your family a monetary stress-free vacation!