How And When to Start Saving for a Vacation

Jul 28, 2016
4 min read

Congratulations! You’ve decided to go on a vacation. You know when and where you want to go and approximately how much it cost. Now how do you pay for it?

Don’t fret! Let me give you a little guidance to help you get started. Let’s begin with when to start saving.

As an agent, I have the access to create complete travel packages for my clients. What I can’t do is predict the future. With that being said, the first thing to know about planning for the best vacation possible starts with the day you decide to save.

The best time to begin planning and saving in my opinion is one to two years in advance. This does a couple of things:

Give you plenty of time to pay for your vacation
Allow you to pay for your vacation over time if you choose
Allow you to save enough money to add some lavish activities or amenities to your package
Also allow you to be able to afford last minute options
Cover any unexpected charges
The best feature is that if something were to occur that would require a change in plans, you could possibly have enough time to recover most if not all of your costs. Combine this with insurance to get the maximum security.

If you’re planning to travel in less than a year, than you need to get started yesterday.

Deposits are usually due immediately and the final payment is usually due at least 45 days prior to travel. The final payment date can fluctuate based on the requirements of your accommodation or airline company. The key is booking as a package. If you book each component of your vacation separately then you will more than likely have to pay for each piece in full. Packages can be booked 330 days in advance. This is how far out most airlines allow clients to book flights.

Most packages require full payment of insurance and air cost upfront. I’ll talk more about the importance of insurance in another post. Airlines usually like flights paid in full and in advance. There are some options that allow you to pay air over time within the package (hotel and transportation). If you find that your deposit seems overly large, the complete cost of the air fare may be the reason. The point is that If you have saved up the full value of your trip you can be prepared for the initial cost which will guarantee your travel. Take in mind that prices can only be set once the deposit or full payment is made. You can’t reserve a package without a deposit. Even if booking without an agent, some hotels will require a credit card and still hold a certain amount funds to cover your reservation.

I highly suggest to my clients that plan far enough in advance to create a separate savings account. This will prevent comingle ling of funds and reduces the temptation to spend it on other things. There a few great saving options out there with some nice benefits to help. Take in mind you can use this technique for anything you need to save for. I have two suggestions but I am sure there are plenty more options out there. The best plan will need to be something that works best for you and your situation.

www.smartypig.com is a free secure service that allows you to open a goal specific interest earning savings account. Once your goal is reached you can do an ACH transfer to your personal account or

choose one of their many retailer gift cards. The program also has gift card bonus that allows you to earn an additional percentage if you choose this as an option. The program also has incentives for referrals and it allows you to accept contributions.

www.disneyvacationaccount.com is a great program offered through Chase bank under the Disney umbrella. This is also a free program but you cannot earn interest. What you do earn is a $20 gift card for every $1000 spent towards a Disney vacation and tickets. This actually is a better than standard interest rates. You can fund this account using a credit card, bank account or Disney gift card. It makes it very convenient and simple to save money on your next Disney vacation. The bonus gift cards do take

time to receive. It’s best to request them immediately after you make your final payment on your vacation if you want to use it during your vacation.

You can always open a separate savings account with your current bank. All the same stipulations with your current bank apply. This may be easier for some especially if they utilize online or app banking. Accessibility might be a little easier. Talk with your local banker about any benefits your bank may offer.

Whatever vehicle you use to save, the point is to get started. Vacations create a lifetime of memories you’ll have forever.

#JustAskKiky

Let me help you get started planning your next vacation today!