Social media envy is real, but for me, it’s something somewhat related: I have what I like to call ‘social media curiosity.’ While not very active on platforms like Facebook, X, and others (fact: I have never had Instagram, Snapchat, or TikTok accounts), the occasional times I do go online, one very common post I come across is pictures of people traveling to different vacation spots. And my God, have these become a lot more prevalent in the last 2-3 years, ever since the world emerged from the restrictions imposed during the COVID-19 pandemic. I can safely say I know plenty of people who have consistently taken 2-3 vacations a year in the last few years. These same people would have barely taken one, if any, vacations per year at all prior to 2020.
Seeing all of this, and being a person who loves to travel, my curiosity (not envy) kicked in. Without directly asking them how they do it, I wanted to know how these people muster the savings—even the time—to go on so many vacations a year. Either they are going on excessively too many vacations, or I am cutting myself short and not going on enough vacations. I would like to think the answer is somewhere in the middle.
Then, as if my brain was already out to find the answers for me, I recently stumbled upon a Reddit thread where someone had asked something similar, mainly how much people spend on travel and how they budget for it. While there were hundreds of replies, some offering fresh ideas on this, I was pleasantly surprised to learn there were no secrets to this, and in fact, I was already applying most of these tips. Let’s go through them and see how to have enough money each year for a great vacation or more.
- Budgeting Strategies: Save for travel by setting aside a fixed dollar amount each month or every paycheck, creating separate savings accounts specifically for travel funds, and using credit cards for rewards (more on that later) . Having a separate account or budget allocation for travel will send a strong message that this is something you care about and are setting money to be used for travel.
- Expense Planning: Plan trips in detail, including costs for flights, accommodation, food, and activities, and save accordingly to meet these expenses. Use an Excel sheet or other similar tool to help you plan your trip in detail, accounting for budgeted money vs. trip expenses. Keep in mind that the longer you plan your trip, the better deals you will come across, not to mention a longer horizon gives you more time to plan things and save more money.
- Local Travel: Consider local trips, which can be fulfilling and fit within a tighter budget, proving that travel doesn’t have to be expensive or far. When we think of travel, we think airplanes and destinations that are a few hours away or longer, so local may not be what comes to mind. But you can strike a balance, where you can go by car (or even plane) to a destination that is at least 1-3 hours away, which will feel like a real vacation, while not breaking the bank. Here are some nice examples to illustrate the point:
- U.S. Example: Exploring the Hudson Valley, New York
For those in New York City, the Hudson Valley offers a perfect example of local travel. Just 1-2 hours away by car or train, the Hudson Valley boasts charming towns, scenic landscapes, and numerous outdoor activities. Visitors can explore the historic estates, hike in the beautiful Hudson Highlands, visit local wineries, and enjoy farm-to-table dining experiences. This close-to-home destination provides a refreshing escape from the city without the high costs of long-distance travel. - Canadian Example: Discovering Prince Edward County, Ontario
For residents of Toronto, Prince Edward County is an ideal local travel destination. Located about 2-3 hours away by car, this picturesque region is known for its beautiful beaches, wineries, and artisanal food scene. Visitors can enjoy a relaxing weekend exploring the charming towns, sampling local wines, and indulging in fresh, local cuisine. Prince Edward County offers a delightful retreat that feels like a vacation without the need for extensive travel.
In both of these examples, you would enjoy a great local vacation, while still having a great and memorable time that won’t break the bank.
- U.S. Example: Exploring the Hudson Valley, New York
- Balance and Priorities: It is important to balance saving for the future with enjoying life now, using travel as a way to create lasting memories. In other words, travel shouldn’t be seen as a luxury only, but rather close to a life necessity.
- Credit Card Rewards: Use travel rewards credit cards to earn points or cash back on purchases, which can then be used to offset travel costs. Almost every bank has a travel-specific credit card, where you can earn more when you use the card to book for travel, while also giving you better deals when booking for travel using these cards. If you are a regular traveler, it is totally worth looking into one of these. With the right amount of spending on these cards, your trip may just end up being free or at least be a lot more affordable.
- Deal Alerts: Subscribe to services like Skyscanner, Travelocity and others to stay alert for travel deals and significant savings on airfare. In fact, some people have come to perfect this and turn their travel deal scoring into a science. Get familiar with these alert services and use them to score the best deals possible. Travel and airline companies would rather sell something at a lower price than to keep the original price but never get it sold.
- Expense Adjustment and Prioritization: Last but not least, be mindful of your spending while on vacation. For example, if you are in Las Vegas, consider opting for more affordable breakfast options, like fast food, instead of the pricey offerings inside the hotel. Additionally, when it comes to gambling in Vegas, plan ahead and set a budget for each session or day. Decide in advance how much you are willing to spend, and stick to it. Another example is if you are visiting a major city like New York, look for free or low-cost activities, such as visiting public parks, museums with free entry days, or attending free events and festivals. Instead of dining at high-end restaurants for every meal, explore local diners or food trucks, which can offer delicious meals at a fraction of the cost. If you’re traveling to a beach destination, consider bringing your own snacks and drinks instead of buying from expensive beachside vendors. Also, check out local markets for fresh and affordable food options to prepare your own meals, especially if your accommodation has a kitchen or kitchenette.
By incorporating these strategies, you can effectively save for and enjoy multiple vacations each year without compromising your financial stability. Good vacations to nice destinations usually mean more money needs to be saved. It is the price we pay to go to these places that we equate with paradise on earth, where we get to relax, enjoy, unwind and recharge to come back feeling better. It is a ‘luxury’ worth paying for most of the time, as long as we know our limit and how to save for it. Last thing you want is to come back from a great and enjoyable vacation, then spend the next few weeks stressing about how to pay it all back.