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4 Tips to Save Money For Upcoming Vacation

ICICI Securities 25 Feb 2022 0 COMMENT

Introduction

Whether you're planning a road trip, a beach vacation, cruise or any other planned getaway, you need to start saving now. While it can be challenging for most of us to start saving money, having a vacation as a goal can be an excellent motivation to begin stacking up your rupees. So instead of going into debt, let's look at how you can build your travel goal and be ready to hit your vacation in style.

1. Set A Dedicated Budget for Your Vacation

If you've planned on where you need to go, the next step is to work on the costs. With an approximate figure in mind, you can open a new Systematic Investment Plan [SIP] in mutual funds and start funding that goal. When you set up an automatic contribution the moment you receive your paycheck towards your travel goal, you will quickly build the amount you need for the time frame to meet the goal.

2. Make Use of Credit Card Cash Backs and Rewards

If you have put off most of your purchases throughout the year on your credit card and have paid off your dues in full every month, it's time to receive the cash backs. Keep accumulating these rewards and save them to be used for your vacation rather than spending extra money from your income.

3. Cut Back on Daily Expenses To Save For Your Vacation

Perhaps it could be a good idea to avoid impulse shopping or purchases as well as going out to fancy restaurants for the time being. Instead, you can dream about using that saved money to spend on your vacation, and for that, you will need to start saving the money you have now. The less you spend money, the more you will have for a comfortable, relaxed and leisurely vacation.

4. Look for A Second Income

Now that you've created a budget, started a SIP towards your travel goal, trimmed your discretionary expenses, and working on saving money wherever you can, how about adding some extra income? 

With extra cash in hand, you can get the financial flexibility you need to make a dream vacation a genuinely incredible experience. A side hustle that gives you extra income can go a long way in saving extra dough and helping you achieve your travel goal faster.

Conclusion

The key to save for your dream vacation is to embark on your financial plan today. The sooner you put your plan into action and the earlier you start, the more money you will have to spend on your vacation. Since vacation expenses can snowball rapidly, it can be a good idea to ensure you start saving at the earliest to have the money you need and make the vacation go smoothly without a hitch.

Look to experience your travel holiday without taking on debt. The loan you take today can become a financial nightmare after you return home. With the right SIP that ensures your money is working for you, jump-start your vacations plan in advance today for a stress-free, comfortable holiday tomorrow.

Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.  The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein mentioned are solely for informational and educational purpose.