Back > Budgeting  > Ways to Save for Summer Vacation

Ways to Save for Summer Vacation

Summer is around the corner again and it’s possibly time to start thinking about swimsuits and sunny getaways. But now that the world has opened up again, the cost of a summer vacation could be expected to be a lot higher than one might expect. Besides increased travel costs, the leisure industry has bumped prices up. In fact, they haven’t just been “bumped” — they have skyrocketed, according to recent Labor Department data.

Airfares rose nearly 19 percent from March to April, the largest month-over-month increase for plane tickets on record, and are up 33 percent from last year. Hotel and vacation rental prices are also rising. These price increases are in response to a massive demand for summer travel. Roughly 90 percent of U.S. travelers plan to take a trip in the next six months, and 35 percent expect to travel more this summer than last, according to data from the U.S. Travel Association. 

Despite the many ways you could let spending habits get out of hand this summer, there are actually some ways to save in preparation for a much-needed getaway. Here are some money-conserving strategies that could help you:

Minimize spending

Home utility costs go up depending on the season, and electricity costs run higher in the warmer months (or the colder months, depending on your home climate). Try to minimize the use of electricity so that your household utility bills aren’t a burden on your bank account every month. There are many other ways to get thrifty that could out-balance the income-to-spending ratio. For example, let’s say that you need to save $50 per week in order to put away enough funds for a vacation. If you get a $4 latte every day, you can cut that out by making your own coffee at home and save $20 a week. If you usually buy your lunch, start packing your lunch to save yourself about $5 to $10 a day. Can you also go without desserts, dining out, and other entertainment expenses? What else can you live without for the next few months until your vacation?

Budget your vacation

Start planning ahead of time — to help save the proper amount, figure out your vacation costs now. This way you will be able to focus on a target amount so you won’t be short on money when you need it. When you’re putting together a vacation budget, remember to include travel, parking, food, accommodation costs, etc. The total cost divided by the number of weeks until your departure date will determine how much you need to save per week.

Taxes and Bonuses

It is never a good idea to rely on a big tax return. However, if you do have a nice refund this year, save the money and reinvest it in your summer plans. Or if you received a nice bonus at work last year, unless this money would be better spent paying off debt, use your annual windfall toward your summer vacation. It can save you the stress of scrambling to get the money together for your trip.

The kind of vacation you can afford will depend entirely on how well you are prepared for the event. And if all goes well, you’ll have sand on your toes while you sip on a margarita, watching the sun go down over a pleasant view this summer.




Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.

Member FINRA & SIPC.

Your Investment Counselor

Skip to content