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Inflation Proof Way to Save for Summer Vacation

Inflation Proof Way to Save for Summer Vacation

June 06, 2022

With Summer just around the corner, now is the time to plan your next adventure! We understand getting away can be expensive, with high inflation as a cause for concern. Whether you are having a staycation this summer or traveling to a destination, here are a few tips for helping you prepare for your next adventure.

  1. Set a Budget: Set a firm budget for your summer plans. Be diligent in sticking to it. Your budget is an educated estimate based on the expected details of your trip: round-trip travel, lodging, local transportation, meals, sightseeing, activities, shopping, and incidental costs. Do some research to get a sense of what you can expect to pay for big-ticket items like airfare and lodging. Do you expect to eat at restaurants or prepare your meals? Rent a car or get around on public transportation? Try and determine cost ranges for each category. Add them together to get a total expected cost range. I would also consider a buffer – say, 10% to 15%, to account for higher-than-expected travel costs or currency fluctuations for international travel. This final number is your upper budget limit.
  2. Automate your Savings: Consider transferring money from your checking account to a designated vacation savings account. If you do not get the chance to spend it, it will start to add up! Consciously moving money from your checking account into a vacation savings account allows you to make automated dedicated contributions to your savings goals. Set up automatic recurring transfers so you can sit back and watch your savings grow!
  3. Look for more ways to Save: Beyond putting money aside each month, there are other ways you can prepare for an upcoming trip. This could mean less eating out, canceling nonessential subscriptions, skipping your daily coffee run, or buying certain products in bulk to reduce your monthly spending.
  4. Set aside your tax refund or bonus: Receiving a chunk of change after taxes or a performance bonus can be a wonderful surprise. Consider putting aside these funds for your trip instead of running out and spending the extra money. Transferring these funds to your vacation savings account makes it easy to say- out of sight and out of mind.

Whether you elect to travel or take a “staycation” this year, relax with the assurance that we are looking after you and your family. Call us today for collaboration, coaching, and customized advice.