The Sneaky Way To Save for Vacation in 12 Months Without Feeling Broke
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The daily grind of 9-to-5 has become a 24/7 feeling. Your heart tells you you’re ready for a vacation. However, your bank account disagrees. While you’d like to make travel a regular part of your self-care, you have a question: How do you save money for vacations when money’s already tight?
That’s the question GOBankingRates reader Victor posed to our Top 100 Money Experts series. Luckily for Victor, we knew exactly who could help him: Kumiko Love — an accredited financial counselor, national best-selling author and founder of The Budget Mom. Love helps people achieve their personal and financial goals without feeling overwhelmed or deprived.
She’s got some clever ideas for how Victor can save money throughout the year for his next vacation.
Sinking Funds Can Set You Up for Success
To help Victor stay intentional about saving for his next vacation, Love suggests he start a vacation sinking fund. Instead of scrounging for money when he’s eager to travel, he can make saving for it part of his everyday life.
“Think of it like paying your future self first,” she said. “Every paycheck, I move a small, realistic amount into a separate savings account labeled ‘vacation fund.’ When you name your money, you’re less likely to spend it on something else.”
If Victor is looking for ways to grow his vacation fund more quickly, he could redirect money from short-term fun — like takeout or impulse buys — into his vacation fund.
“You’re not removing enjoyment — you’re trading short-term comfort for a long-term memory,” she said. “You can even use tools like automatic transfers or round-up apps to make saving effortless.”
Embrace Small Yet Consistent Actions
Love presents Victor with a hypothetical: Let’s say his goal is to save $1,200 for a trip within a year. That seems like a lot of money. But before he gets discouraged, Love invites him to break down the numbers. To save for his trip, he needs to put away $100 a month, or $25 a week.
“Suddenly, the dream doesn’t feel so far away,” she said. “Create a system that works with your habits, not against them.”
Victor can do that by finding fun, creative ways to build his vacation fund. Naturally, Love has a few suggestions.
The Cash Envelope Hack: “If you still use cash for certain categories, like groceries or coffee, tuck leftover change or bills into a ‘vacation’ envelope at the end of each week,” she said.
Paycheck Rituals: “Every payday, transfer a fixed amount into your vacation fund before paying bills,” she said. “Treat it as a nonnegotiable bill to your future joy.”
Mini Challenges: Love encourages Victor to try a no-spend weekend once a month or even take on a 52-week challenge that involves saving an increasing dollar amount each week (for example, $1 in week one, $2 in week two, and so on).
Through small yet consistent actions, Victor can save enough money for the vacation of his dreams faster than he thinks.
Smart Vacation Planning Can Also Help You Save
Victor can also be intentional about saving money while planning his vacation.
Though it’s tempting to believe that only those exclusive — and expensive — vacation packages promoted by social media influencers are worthwhile, Love assures him he can still have a fantastic experience with a more budget-friendly trip.
Love has some tried-and-true tips for planning a cost-conscious vacation:
Travel Off-Peak: “Avoid popular travel seasons,” she said. “For instance, traveling in the shoulder season — right before or after peak — can save hundreds on flights and hotels.”
Use Rewards Strategically: “If you use a travel rewards credit card, such as the Capital One Venture, you can redeem miles to cover flights or even hotel stays,” she said. “That’s how my family travels to Arizona every October without going into debt.”
All-Inclusive or Repeat Trips: If Victor visits the same destination every year, Love encourages him to keep his past budgets. “Knowing what you spent helps you plan accurately for next time,” she said. “For my family, going to the same resort in Mexico each year has helped us fine-tune our budget and avoid surprises.”
She advises him to plan for experiences, not extravagances. He shouldn’t fret about paying for a vacation that looks amazing on Instagram; instead, he should focus on what brings him joy and aligns with his values.
“You don’t need five-star everything to make a trip unforgettable,” she said. “Vacations are best when they don’t come home on a credit card. There’s nothing relaxing about trying to recover financially from something that was supposed to bring you joy.”
Final Words of Wisdom
As Victor starts taking steps to pay for his next vacation, Love wants him to be intentional about his pleasure and confidence as well.
“I’ve learned that the best vacations aren’t defined by where you go or how luxurious they are — they’re defined by the peace you feel while you’re there,” she said. “Every time you set money aside, you’re not just saving for a trip — you’re building confidence, self-trust and proof that you can follow through on your goals.”
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
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