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STEP TWO: PLANNING Do some basic research and roughly determine how much money you’re going to need. You’ll also want to begin creating a travel budget that includes line items for things other than the cost of plane tickets and lodging. Consider adding categories for dining out, souvenirs, and entertainment. Don’t forget about potential hidden expenses like ATM and foreign transaction fees or extra cash for tipping. In general, we recommend trying to budget at least 5-10% more than what you think. STEP THREE: OPEN A TRAVEL SAVINGS ACCOUNT Once you have a general idea of how much it’s going to cost, open a dedicated travel savings account with your credit union or bank. This step is really important and I guarantee that it’s easier to do than you think. Once your new travel savings account is open, don’t forget to ask your friendly personal banker to have a portion of your direct deposit going automatically into it. Use the total amount you calculated in the previous step and do some reverse math to determine how much you should save from each paycheck in order to go during your ideal travel window. STEP FOUR: SEARCH FOR DEALS As the weeks and months go by, dedicate some time to look for deals on airfare and accommodations. If you’re able to be a little flexible about when you actually go, then you can often score some big discounts. We’ve recently discovered Hotelopia and Be Live Hotels, which are two really cool options to check out for hotel and vacation rental discounts and deals. Try to plan your trip during your destination’s “shoulder season” and consider a travel rewards credit card for purchases. No matter if you plan to use a credit card or a debit card, make sure that your financial institution does not charge you a foreign transaction fee. STEP FIVE: BOOK IT! Secure your airfare and lodging no more than 30-days prior to your departure. Yes, you could potentially save even more by waiting until the last minute, but it’s better to avoid the stress for trips that require longer-term planning and saving. Create a checklist of everything you could possibly need to bring with you including medications, passports, and multiple methods of payment. Don’t forget to also notify your financial institution that you’re going to be traveling outside of your home state. The last thing you want to happen while on vacation is for your debit or credit cards to be locked because of suspicious activity. And finally, pack your bags and enjoy your dream getaway!
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