5 Tips to Save Money for Your Dream Vacation

January 1, 1970 Posted By MCB Funds

If you find yourself scrolling through your friend’s vacation pictures with a twinge of longing  because of your own lack of savings, trust me you’re not alone. You may be wondering how everyone around you can afford a dream vacation abroad, while you find yourself broke month after month.

Saving up for your dream vacation may seem difficult but in fact all it takes is planning. Contrary to popular misconception, you don’t have to jump through a lot of hoops or give up everything you love to save money. But all you need to do is start being smart with money.

With the summer fast approaching, NOW would be an ideal time to learn how to save smartly. Follow these tips and you might be flying off to Malaysia or Thailand this summer!

1. GOAL WITHOUT A PLAN IS JUST ANOTHER WISH!

First, you need to decide your destination and how much your vacation will cost. Rather than having a vague plan, have an amount in mind so that it’s easy for you to break it down month-wise and then track your progress. Use our calculator to help you figure out how much to save.

2. MEET BUDGETING, YOUR NEW FRIEND!

Now that you have an amount in mind and a roadmap on how to get there, it’s time to make a budget and stick to it! Instead of letting your money control you, make sure you have control over your money. For that, you need a budgeting tool, which will not only track your spending but will help you realize what things you have been wasting your money on.

3. TRACKING EXPENSES NEVER HURTS

Closely examine your finances. List down all your monthly expenditures. Cut down unnecessary spending and prioritize your savings. The best thing that you can do is figure out which money-draining activities aren’t really necessities by categorizing them as needs and wants.

4. MAKE YOUR MONEY WORK FOR YOU

Why settle for just saving when you can increase your wealth? If you save at home, your money sits idle, but if you start investing, it multiplies. You can invest for any amount of time and for any goal, no matter how big or small. The best part is that you can do it online easily with the utmost ease and transparency. So if you want to see your money turning into a large pile, start investing in Mutual Funds!

5. SAVE ON TAXES

Don’t you just hate tax deductions? When you invest money in Mutual Funds, you can reduce that tax deduction amount and end up with a higher take-home salary. All you need to do is submit your Account Statement at work! That additional amount is going to bring you one step closer to your dream vacation.

So stick to your saving plan, and with regular savings you’ll be well on your way to making your dream vacation come true. Most importantly, it does not matter how slowly you go as long as you continue.

There you have it! Everything you need to get away for a well-earned vacation.