How To Finance Your Dream Vacation

Jet, April 16, 2001

It would be nice to treat yourself to a warm slice of paradise about now--wouldn't it?

Don't have the funds to finance the trip? These tips will help make that dream getaway a reality sooner than you think.

Save now, enjoy later. Call your local travel agency, check with vacation companies, airlines and cruise lines or search the Web to get the going rates for your getaway. Don't forget to factor in meals, tips, taxi or rental car costs, spending money and other incidentals. Once you have a ball park figure, settle on a realistic amount you can save each month toward your trip. And stick to it!

Follow a strategy. Obviously, saving for your trip is easier said than done, but it's not impossible--if you have a strategy. First, don't mix your vacation fund with the money you use for common expenses or even your regular savings so that you won't be tempted to dip into it. Instead, open a savings account strictly for your vacation money. If your company offers direct deposit, set it up so that part of your paycheck goes into your vacation account.

Or join your company's credit union. The money you invest each pay period is taken automatically from your paycheck, and when you're ready for your trip, you can cash out the funds. Also, many vacation companies and cruise lines now offer payment plans to help you finance your vacation.

Find painless ways to cut back. Having problems finding spare cash to save? Even if you think your paycheck is stretched to unnatural limits, there probably are areas in your budget that can stand a good trim. Start with dining and entertainment --two major vacuums of spare income.

Look for specials and deals. Vacation companies like Disney Vacations, Apple Vacations and Funjet Vacations, as well as airlines, cruise lines, hotels and resorts always run specials, but they can sell out or expire fast, so check frequently for new offers. If you have Internet access, sign up on travel company Web sites to get news on upcoming deals. In fact, some specials only appear online.

Also check for all-inclusive travel packages, which can be significantly cheaper than paying for your flight, accommodations, meals and amenities a la carte.

Be Flexible. Flexibility equals big savings in the travel world. Vacation companies, airlines and cruise lines offer last-minute deals at substantially discounted prices in an effort to fill empty spaces. The only drawback is that you have little say in the terms of your stay.

Even simple changes like vacationing four days instead of seven, staying at a moderate hotel in lieu of a five-star resort or traveling during the off-season can save you hundreds of dollars!