While there are many fun things Romulus and Redford residents can do to pass the time for free, when it comes time to planning a much longer trip, you want to make sure you have your finances in order so you can just focus on having a good time. There's no wrong way to save for vacation -- just putting money aside is a great start -- but Public Service Credit Union has some tips on how you can start ramping up those savings goals.

The Best Ways to Save for Vacations

As you save for vacations, it can be a good idea to consider opening a general savings account, or even another high-interest CD or money market account that’s solely dedicated to your vacation. Why should you set aside money in a separate account, even if it's just a different savings account?

Setting aside money in a "no-touch" account discourages you from dipping into it and sabotaging your savings efforts.
Accounts like CDs are especially good at discouraging withdrawal -- you'll often face penalties if you take money out early.
When the money is set aside, it's easy to monitor -- you don't need to think of whether your next power bill or mortgage payment is going to come out of the total.

The larger the vacation, the more careful you should be about planning. If you're heading overseas or making a trip with a bunch of family members, it's even more important to give yourself a buffer.

Longer vacations or overseas trips often mean more transactions, and thus more unexpected transactions.
It's essential to give yourself a buffer beyond the costs you expect to cover the costs you don't expect (when traveling abroad, this is especially important to cover shifting exchange rates).

If you don't have a set date for the vacation, yet, one of the best ways to start saving is to set automatic deposits that will contribute to your vacation fund. You could even set small goals and celebrate when you reach a milestone on your way to a vacation.

Tips to Setting a Strong Vacation Budget

When you save for vacations over time, this gives you more opportunities to only establish an effective vacation budget, but also keep your finances in order and watch out for extra spending. While there’s not much else you can do once you’ve set up a vacation savings account and set up automatic deposits until you cash out, there are many other unique ways you can get scrapping and generate extra savings for your next trip. These include:

Setting aside portions of your tax refund or performance bonus
Getting a travel rewards credit card
Paying off all of your credit card debt
Canceling any unused or nonessential subscriptions
Eating out less and using coupons and other savings to lower your grocery budget
Get a part time or seasonal job, or getting extra hours at work
Selling any unwanted items online or with a garage sale
Using your skills for a side hustle

Save for Your Next Vacation with Public Service Credit Union

No matter if you’re looking to plan a long weekend away or want to prepare for some much needed longer time off, Public Service Credit Union can help. We’re proud to provide Detroit customers with a wide range of short-term and long-term banking solutions so you can stay on track towards your financial goals. Contact us today to get started and discover how you can become a member of our credit union today!

How to Save for a Vacation

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