Vacations are what give some people life. Taking a break from work or school, or other life stresses, is necessary, whether the trip is to visit family, sightsee, have an adventure, or relax and unplug on a beach for a week.
Everyone has their dream vacation that they have been thinking about for years. You’re probably thinking about yours right now as you read this. You know the one – if money was no object, and you could go wherever you wanted in the world for as long as you want. Imagine exploring the Luxury Villas in Mykonos and finding your perfect choice for a week, or traveling through Europe for a month, stopping at every city and sight along the way. You might not be able to take your absolute dream vacation, but with enough planning and budgeting, you can save up for an extravagant trip.
Get a second job
Of course, assuming you are already employed full-time, getting a second part-time job or finding a side hustle is a simple way to make some extra money that can go straight into a travel fund. Finding a remote job is a great way to fit in a second job into your probably already full schedule, so you can work from home or anywhere else. If you don’t mind giving up your evenings or weekends, a part-time job would also be a good idea. Your schedule may be a little hectic for the time being, but once you’ve booked your dream vacation, it will all have been worth it.
Set up an investment account
If you’re familiar with investing, this might be a viable option for you. Some people use a taxable investment account for short-term goals or emergency funds, so why not use one as a travel fund? If you apply the same principles of saving for an emergency fund, you’ll have no problem.
Decide how much you can afford to put away each month towards your trip. Even if it’s a small amount, as long as you stick to it each month, you’ll be on your way. Consider making the payments automatic, so you don’t have to think about it, or forget to contribute.
If you’re concerned about the risks involved in short-term investing, try indexing so you don’t have to choose which stocks to buy and can instead take advantage of the entire market’s performance. Also, keep in mind when you sell, you will have to pay tax on your capital gains, so factor in those costs ahead of time to avoid surprise charges or fees right before travel time. However, if you sell at a loss, you could receive a tax benefit and in a way, your trip could be tax deductible.
Talk to an advisor
Speaking to a financial planner or advisor can help your travel fund goals come true a lot quicker. They can help you understand your financials better, plan a budget for you, or help manage your current finances and investments, if you decide that investing is a good route for you.
Volunteer while you travel
If you want to save money in some capacity to be able to allocate that spend to something like upgraded accommodations or fine dining, consider volunteering while you’re traveling. You could find a vacation opportunity for travelers that would pay your flight, or donate your time to work for a meal, so you can really splurge on another extravagant part of the trip. Also, if you want to travel to one destination for an extended period of time, you could consider taking a job in the travel and tourism industry, where you might be able to snag discounts on hotel rooms.