It’s Financial Friday and I want to chat about saving for a vacation.
Mike and I love to go on holidays although we don’t go as regularly as we would like to. Early on in our relationship, when we were younger, we would go on spur of the moment holidays & weekends away, no plan in advance, and the charges would ring up on the credit card. We would have a lovely time, come home and then the bill would come. Suddenly, that trip didn’t seem quite so fun anymore.
I opened a separate saving account linked to my checking account, labeled it Vacation Fund only, and each payday when I’m paying my bills, I transfer $25 into that account. That’s what I can afford to spare to do twice each month, sometimes if I get a little unexpected money, I’ll throw some extra in there as well. I’ve used this system both for planned vacations (eg. If I want to go to Vegas and that trip will cost me $1000, how long do I have to save/put away each payday by March to do that, and work it into my budget) and also unplanned (eg. Hey! I have $450 in my vacation fund and no plans; Mike – do you want to go to Canmore for the weekend?)
The trick behind this to to a) determine how much you can afford to put away each payday, even if it’s a small amount, b) pay it to yourself like a bill, and c) have a specific place to set it, like a separate account or a mayo jar.
This is a fun exercise that will give you something to look forward to, whether you want to go to Disneyland, Paris or Strathmore for an overnight.