I Have Yet to Make Travel Plans for 2024. Here’s Why I’m Already Saving for Trips

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Saving up for future vacation costs is an excellent strategy to avoid going into debt. Discover how and why one writer prioritizes her travel savings fund. [[{“value”:”

Travel is a big passion of mine. When budgeting how to spend my money, I ensure some of my income goes toward travel. While I always pay necessary expenses like my mortgage, car insurance, and utilities first, some of my money gets set aside for fun.

I traveled a lot last fall and winter, so I’m hanging close to home for the next few months to rest and relax. Find out why I’m already saving for my next trip, even though I don’t have any set vacation plans yet.

I like to prepare for future expenses

Every two weeks, I set money aside for future expenses. A portion of my savings contributions is funneled into various buckets so the money is there when I need it.

Here’s an overview of my 2024 savings buckets:

Quarterly self-employment and income tax paymentsUpcoming expected costs like car insurance premiums and prescription glassesMoney to pay myself when I take sick days and vacation daysEmergency fundTravel

This is why I like to save up for future travel

Nothing is worse than coming home from an exciting vacation and seeing the hefty credit card balance you must pay soon. I do everything I can to avoid paying expensive credit card interest charges. I do this by paying my entire bill in full every month.

Saving up for vacation costs before I travel means I don’t have to worry about the cost of my next credit card bill. Instead, the money is already sitting in the bank.

When I return home, I transfer the funds to my checking account and schedule a payment through my online credit card account. Doing this also allows me to enjoy my travels without worrying about my personal finances. You can benefit from following a similar approach.

Here’s my approach to saving for vacations

At the start of the year, I pick a yearly savings goal for my travel fund. Of course, I don’t know how much I’ll spend on travel that year, but I can estimate based on my prior travel habits.

Then, I automate my savings contributions to save myself time. Money is transferred from my checking account to my travel savings fund every two weeks. Whenever I’m ready to start planning my next trip, I can review the current balance and decide how to use the money.

As a freelance writer, my income fluctuates — meaning some months are better than others. When I’m having a more profitable month, I’ll transfer some of my extra income to my savings account and split the money between my savings buckets. Sometimes, I contribute extra money toward my travel fund — which helps me boost my balance faster.

Don’t go into debt

While traveling costs money, you don’t need to go broke to take a vacation. It’s possible to book affordable travel. One option is to use online travel tools and deal services to book hotel and flight deals. Travel deals can help you stretch your vacation budget further.

Another option is to use rewards credit cards to cover some of your travel costs. You can book nearly free travel once you have earned enough points, miles, or cash back. Review our list of the best travel rewards credit cards to learn how you can benefit from these cards.

Ensure you only spend what you can afford to avoid credit card debt. Saving up before you take your next vacation is an excellent strategy. By keeping your travel fund in a high-yield savings account, you can earn interest — which could help you reach your savings goals sooner.

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