Quick Tips for Money Smart Vacationing

The 4th of July holiday kicked off the traveling season on a strong note. An estimated 41 million people hit the road and took to the skies for the holiday weekend, according to auto club AAA. I hope everyone had a wonderful and safe 4th.

When it comes to traveling and vacationing, how many people really budget for how much it will cost when it is all said and done? Do you sit down and estimate the total cost or just wing it? With the old reliable credit card in hand the sky is the limit on how much people will spend on vacationing. Sure, they had a great time, but is it worth it when you return home with a list of credit card charges a mile long that will take decades to pay off?

I am all about having fun and it’s nice to take a weekend getaway or family vacation, but you have to be reasonable about on how much you are going to spend. When you budget for a vacation you are setting a behavior in motion of being in control of your money instead of being out of control, which is another reason why your checking and savings account is constantly at zero each month.

Here are some quick tips on how to save money on vacations:

1. Budgeting:
Have a category in your budget for traveling/vacation. Put an allocated amount away each month for this added luxury. For example, if you save $250 a month for a yearly vacation, you will have accumulated $3,000 at year’s end. You then can plan your trip around the $3,000 you saved.

2. Debt Free:
Don’t fall prey to all the high-end vacation, resort, and cruise ship advertisements that you would need to fund with your credit card. Companies like this spend billions of dollars in advertisements each  year and their goal is to make you feel good that you put it on your credit card. Make it a game where you are the winner each year by funding a vacation debt (and credit card) free.

3. Plan out your Expenses:
Plan out the cost of meals, sightseeing, and souvenir purchases. The internet is a great tool to get started on estimating your daily spending. If you are planning on eating out every meal, you will find it could eat away at half of your vacation budget. Look at ways to keep the meal costs in check. Find hotel rooms with small refrigerators, so you can store fruit, drinks, and sandwich items. To take it one step further, make sure to ask a local where they like to eat, where the free entertainment is, and which souvenir shops aren’t overpriced. This way you are staying far away from the tourist traps.

4. Shopping for Discounts:
If you are traveling by air, check different travel sites. According to CNN Money report, Tuesday is the most cost effective day to fly compared to Sunday being the most expensive. Plug in several different days and times and find the one that offers the best savings. In addition, if you are planning on renting a car, shop around as well. You will be surprised on the variance in pricing. I found Hotwire has the best deals on rental cars, and Southwest Airlines offer surprisingly lower fares than other major airlines, but aren’t included in most airfare search engines.

Here is a list of some popular travel sites for booking the best deals and can help keep more money in your wallet:

Hotels.com
Priceline
Kayak
Expedia
Orbitz
Hotwire
Groupon Getaways
Livingsocial

Follow these tips about being money smart so you will spend less and come back from your vacation debt free. Plus, by keeping an eye on your vacation expenses you just might find that you had a better time experiencing how the locals live instead of how the big travel chains want you to experience your vacation.

Feel free to tell us about your money saving vacation tips in the comment section below. Enjoy your money smart vacation this year!

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