5 Ways to Start a Travel Savings

5 Ways to Start a Travel Savings

There is no doubt that 2020 has been a stressful year for everyone. With the pandemic, forced quarantines, and the overall need to stay healthy, travel has not been a priority for most. However, even before the pandemic hit, Americans in particular often failed to utilize all of their vacation days.

According to Expedia’s 2013 Vacation Deprivation study, 60% of Americans wanted to take a vacation but never went. This led to over half a billion vacation days in 2013 that were never used. But why?

Well, when Expedia asked the biggest reason for this they found that more than 15 percent of respondents said they didn’t take their vacation because of a lack of funds.

So, how do we tackle the many items on our Adventure Travel Bucket List if we think we cannot afford them?

The best answer: Start a Travel Savings Account

In order to help you visit the many places you dream of traveling to, we have developed a way to set up a travel savings account. That way, you can stop wasting those precious vacation days and tackle your own bucket list!

1) Figure Out Your Travel Savings Goala couple setting a travel savings goal for their next vacation

Ben Franklin once said, “If you fail to plan, you are planning to fail!”

There is no doubt that travel can be wonderful and exciting. But, like with all things, you need to have a plan in order to do it right. There is nothing worse than maxing out your credit cards in order to make any bucket list dream come true. But with a little planning, you can easily set up a goal to create a travel savings so you can have the perfect adventure.

In order to figure out your travel savings goal, we recommend you take some time and focus on two things:

  • Where you want to go
  • When you want to travel
Have you ever skipped a vacation because of a lack of funds? Well, with a little planning, discover how you can easily set a travel savings in order to have the perfect adventure. #VacationFund #TravelSavings #TravelFund Click To Tweet

a) Decide Where You Want To GoFiguring out where to travel in order to set up a vacation fund

Perhaps the first thing you need to decide when setting up a travel savings account is determining where you want to go next. Things like your flight, lodging, food, tours, and even souvenirs can all add up depending on the location. This is why we love checking out the Big Mac Index Converter created by The Economist magazine.

The Big Mac Index Converter will help you understand the relationship between your own country’s dollar versus the relative value of a dollar in the country you are wanting to visit. In other words, you can determine how much your dollar is worth compared to the currency of the country you are visiting. Then you will know how much money you will need to have in the bank before you go.

b) Create a Deadline or Departure Date

There is no doubt that deadlines can often add pressure to a situation. But by creating a deadline or a departure date it will allow you to commit to your travel savings goal. This in turn will motivate you to start taking action and prepare properly.

For example, we love using the Savings Goal Calculator from Pigly. This calculator allows us to not only see how much our current savings is growing but it also shows us how much we need to add in order to achieve our savings goal in a set period of time.

The Savings Goal Calculator from Pigly

2) Create a Dedicated Travel Savings AccountSet up a High Interest Travel Savings Account

Perhaps one of the biggest mistakes most people make is not creating a dedicated travel savings account. Often, we hear of people just using their main bank accounts or pulling money from their overall saving account to fund their vacations. But this often leads to more headaches and other challenges.

That is why we strongly recommend you find a high-interest savings account to dedicate solely to your next vacation. Bankrate.com in December of 2020 released their list of the best high-interest savings accounts and most come in at over 0.60% APY! We personally love Ally and have been using them for years. Not only do they offer great interest rates, but the Ally Interest Checking Account charges a very reasonable rate of 1%, with the standard being 3% when withdrawing cash from an international ATM.

Hot Tip: It may sound silly but NAME YOUR ACCOUNT! There is something to be said about seeing the name of your Vacation Fund when tracking your travel savings. Perhaps if anything it will motivate you to continue to add to the fund and reach your goals!

3) Pay Your Vacation Fund MonthlyAdding money to your Vacation Fund Piggy Bank Monthly in order to stay on track

With the Savings Goal Calculator from Pigly above, you will notice that “Contribution Frequency” is a key factor in determining your vacation fund goal. Of course, with a high-interest savings account, your total will grow. But by adding more funds monthly, it will become easier to hit your goals.

That is why we strongly recommend you pay your dedicated travel savings account monthly just as you would any other bill. Perhaps the best way to do this is to set up an auto-deposit on a certain day of every month. To do this, first, determine your monthly income. Then subtract your regular bills, set aside an amount for incidentals or emergencies, and then with whatever is left, set up an auto-draft. This way, you won’t be tempted to skip paying your travel fund.

4) Squirrel Away Your AcornsAcorns micro investing is a great way to add to your travel savings

Of course, a dedicated high-interest travel savings account is key to funding your travel bucket list. But there are also other ways you can save money for a vacation fund. One of the biggest tools we use is the micro-investing app called Acorns. Essentially, Acorns is a micro-investing account that allows you to save for whatever you like by investing your spare change. Plus it is quite a no-brainer. All you have to do is link your credit card or your checking account with their system. Then they round each transaction you have had up to the nearest whole number. From there, they pull the difference from your checking account and invest it in an investment account that you set up.

Don’t get us wrong, you aren’t going to become a millionaire from micro-investing with Acorns. But since 2016, not only have we put away over $2200 without even trying but have also earned an additional $700 from their investments.

5) Track Your ProgressA couple tracking their travel savings in hopes of taking a vacation next year

Whether you use Excel on your computer or you hang a fun Juvale Goal Setting Wall Chart Thermometer in your office, you are going to want to track your travel savings account. Since, you now have a departure date and are using any of the savings tools found at Pigly, it will be easy to track your progress monthly.

Perhaps the best reason to track your goals though is in case you fall behind. If this happens, don’t fret just go back to your calculator and see what you need to do to make up the difference. Perhaps you just need to adjust the amount you are paying monthly to your high-interest savings account.

Now It’s Time To Pack!Getting your Passport ready for your next Trip

So, as you can see, setting up a travel savings can be quite easy and very beneficial! There is no reason that those vacation days should ever go to waste. All you need is a bit of planning, focus, and the desire to make those travel bucket list dreams come true!

What are ways you save money to fund your vacations? Are there tools out there that you have had success with that helped you create a travel fund? Is there anything extra you do to add to your personal travel savings account that you would recommend? Let us know in the comments below, so others can learn from your success!

Don’t forget to Pin 5 Ways to Start a Travel Savings to Your Favorite Travel Board!Pinterest Picture of a man holding a jar filled with money as part of his Vacation Fund

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71 thoughts on “5 Ways to Start a Travel Savings

  1. I totally agree, you need to have a dedicated, separate account for travel savings. If you just use a general savings fund, it all gets mixed up, then you end up overspending in some areas and never reach the goal. Naming it is very motivational!

    1. Yeah naming your Travel Savings account may seem a bit silly at first but every time we look at it and see it’s name on our list of savings accounts, it always motivates us to drop a few dollars in there for future travel adventures!

  2. These are great tips! Having a dedicated savings account and watching our progress is the best way we’ve learned to do it as well. It’s exciting to see it stack up when we don’t make frivolous purchases! Combined with credit card points and such, we try to take 1 big trip and 5 small trips a year. It’s been amazing to realize how much we don’t need so we can travel more.

  3. With a goal in mind it is much easier to save. For example, it changes whether the meal out for Chinese food you were going to have is worth it when the other option is a trip to China. It all adds up.

  4. I am all about #3 and #4. Such good tips, not just for funding travel, but planning for all of life’s curveballs and milestones!

  5. It has been strange times and usually most of my spare cash goes into a travel account. But the last 12 months, I still been putting cash into the account but most of my spare cash has cleared a lot of debt! 😀 (Wish I was earning enough to pay off my mortgage at the same time…oh well). So when travel does recommence, going to have even more spare cash for the road. Happy days! (This has probably been the only advantage of a pandemic, but seriously, Covid needs to go now…too many sick people and too much restrictions on Freedom).

  6. These are some great tips! Having a travel savings is something that I really need to do, I tend to just go trip to trip and try to pull the money together at the last minute. It works, but it also adds a lot of stress and prevents me from saving money on some things I could have had I have the money earlier. I think putting a deadline on it would help the most because it would give me a clear date to aim for. I plan on putting these tips to use!

    1. Couldn’t agree more. I too used and still occasionally travel by the seat of my pants so it makes it a bit tricky for planning and saving. But that is kind of why I like setting up an account even if I dont have a specific trip in mind. Consider it my Travel Savings Slush Fund for any trip that I can build on rather than depleting a savings or using high interest low return credit cards.

  7. I love the idea! Since we traveling is currently on pause due to the pandemic, the best thing that we can do is to prepare for the big trip once it’s okay to do so. Would love to start on this travel savings thing. Thank you for sharing this.

  8. This is such an excellent post. It is actually the right time to start saving for travel … hopefully in 6 months time , all the restrictions will be over. Thank you for sharing such great tips.

  9. I like the dedication here.. nothing beats a well planned plan but here in our country, mostly the execution is the harder part hehe.

  10. Thanks for providing these tips. Our trip was canceled last year. I will follow your tips and hopefully, we will be able to do it this year.

  11. Great tips on how to save money on vacation. Very helpful in planning travel destinations for 2021. Saving money on holidays is a priority for me.

  12. I found this post very informative. I can’t see why it shouldn’t go viral. These saving tips are useful not only for planning a trip but can be applied to anything else that has to do with finance. Aside from the lack of funds, time is another reason why people hardly travel. Some people have money but not the time.

  13. It seems so common sense, but I never have thought about it like this. I do save for my trips, but it’s not something I was taught. I’m guessing this blog (especially with how well it has been broken down), will really benefit from this. Thank you for taking the time <3

    1. Thanks, Yeah, it is weird how you never really learn this kind of stuff in school but they crammed calculus into my brain and I have yet to use it! Glad that you also do save for your travels as well.

  14. Some fab ideas on how to save with greater interest and easily track your progress. I’ve been saving since I returned home ready to travel in the summer but I have a few plans depending on where is safe to travel at this time.

  15. Great ideas. I plan well ahead of time so I often start booking things and paying as I book them. I need to try some of your tips though just because my way isn’t as organized.

    1. Yeah, I used to be very similar to you in my purchasing. But with so many deals popping up randomly, I often look at a deal fly by because my checking account didnt have enough in it at that moment. So that is one of the biggest reasons we started this process of creating a Travel Savings so we can always have a slush fund ready when and epic deal pops up!

  16. I started a travel savings account for myself almost 5 years ago and it was one of the best things I did for myself! It has really helped me organize my finances better and to make sure I am able to fulfil my dreams, along with living the life that has to be lived! I now have a dedicated savings fund for Antarctica specifically because it is so expensive, will make it in 2021 hopefully!

  17. This is great to help encourage me to save for my next trip. I can’t wait to go away again but done quite have the funds yet.

    1. Yeah, we love the Acorns App especially since it is relatively no brainer! Plus, we have made hundreds and to be honest, I HAVE NO IDEA WHAT I AM DOING with regards to stocks or most investments! So it is great that they run a simple system that anyone can use.

  18. This is such a great idea! The only account that I have right now is to survive! lol! But great tips non-the-less. I quite like the idea of Acorn account. Thank you. x

    1. Yeah, Acorns is really awesome cause it is kind of like a set it and forget it. About 2x a month depending on your normal spending, your bank account gets a deduction of $5 – $10 and it gets automatically invested for you. Plus you can set up auto-drafts at least once a month to deposit even more into your account so you can compound your earnings!

  19. We have an ongoing travel savings account but it has been years since I was tracking it with a specific travel goal in mind. That being said, I think it would be a fun challenge to add to it. Pretend I’m starting at 0 right now and build it up for a goal with anything extra that’s in there just being a bonus! We’ve been talking about purchasing a camper van and doing a huge Canada/US road trip.

    1. Love that you would just start at “0” like you have nothing. Cause then all your efforts will be a bonus and add to your current pot! I would love to see how you use this to get that Campervan or use it to fun the epic North American Road Trip!

    1. Haha, yes we do!! Glad you got started, sometimes just starting is the hardest part. I guess that is why I love using Acorns too cause once I got it hooked up, it pretty much started saving extra money in an micro-investment account for me!

  20. Since our last trip was in January 2020 and we were unable to travel in 2020, our travel bank is all full and we are ready to go after we get the vaccine in 2021.
    For me, the most important question to ask oneself is: Do I really need to get this $7 coffee or do I really need to go to a restaurant again or do I really need these new clothes or can I do without? I think not spending money is the best way to a wonderful vacation. And yes, having a high interest travel/savings account definitely helps.

    1. Totally Agree Rudy. Frugal living is a great way to pad your Travel Savings! Being somewhat of a minimalist in my home life, makes it so very easy for me to splurge on our bucket list adventures. Don’t get us wrong, we don’t think you should stop living a fun life at home either. But it is easy to cut costs if you really try!

  21. Very informative and hands on article! My little trick to save money is to stay at a hostel or Airbnb and cook my meals there (a local supermarket is my best friend). But this post got me brand new ideas to save and prepare for travels in a smarter and more strategic way! I can apply your tips to my currency. 🙂

    1. Glad you found it helpful. We love using hostels & airbnb to save money too! Plus, exploring local grocery stores is tons of fun for us on top of saving money on food costs!

  22. This post is informative and true. Most of us are unable to travel due to the lack of funds. Proper planning, looking for deals, booking tickets in advance is a great way to travel. If you are serious about travel then like every other thing in life PLAN.

  23. Since my partner and I loves traveling so much, we have a dedicated account for it! 2020 has been challenging but that gives us more time to save when it’s okay to travel to other countries again. Such great tips!

    1. Glad to hear this! 2020 has definitely been hard on those who love travel, but that doesnt mean you can’t plan for future travel & what better time to start than now!

  24. This is really nicely laid out and has a lot of good practical tips, I’ve never heard of Acorn before.

  25. This is why I love Ally bank! There “buckets” means I have one savings account separated into categories. And travel is definitely one!!!!

  26. This is a great way to help people start saving so they can travel! I think the problem is now that travel is SO much more expensive than it was before 😅 even within your own country! At least it is over here in Australia. We had planned to do the same holiday we did a few years ago and it’s more than tripled in price! Guess we’ll just have to wait..

    1. Sorry to hear that travel is so expensive in Australia! That really stinks. We have been quite blessed here in the states that most places have reduced costs to entice travelers as long as they are doing it safely! But at least with these tips you can start adding to your Travel Savings nest egg for future adventures when things normalize again!

    1. It is definitely the best time to start a Vacation fund. Since you can’t really go to many places yet, why not create a travel savings in preparation for future bucket list adventures!

  27. This is such a great way to plan out your holiday savings! I finally have a budget for travelling next year so will be using your method for saving!

    1. Awesome Jemma! I am glad you have some extra for setting up your vacation fund! Can’t wait to see all the bucket list places you go in the future!

  28. Thanks for the practical and useful tips and I totally agree with you. Traveling is a great part of my life, and it’s totally worth it because traveling broadens your vision and gives you so much valuable life experience – Knycx Journeying

    1. Thanks! Yeah, it is the best time to start a travel savings account now so you can be ready for the new year and any future travel bucket list destinations!

  29. I think these are great tips, I’m still in the begining stage. Just figuring out where I would like to go and the costs and procedures.

    1. Well Rochelle, you have to start somewhere. But don’t get stuck in Step one of starting your travel savings! Sometimes you just have to make a decision and start planning. I find once you do that, more ideas and new destinations come to you!

  30. I really like the creating a dedicated travel savings account tip. I might just do that. I do end up taking it out of saving or spending accounts…or just use a credit card. On my last road trip, the majority of the cost went into the gas. Hotels weren’t that expensive, neither was food. So, thanks for the tips here. They are useful for sure.

    1. Yikes!! I hate the idea of using my credit card cause those extra fees can really rack up and often people don’t pay off their debts immediately! So, that is why we prefer to use a dedicated savings account and only use a credit card in case of emergency!

  31. Even though we travel in luxury for many of our trips, you might not know that I am a cheap girl at heart. Very early in life I learned to make tradeoffs in where I spent my money to get the things I wanted. So saving for travel became a priority well before I chose to semi-retire. And why I still take good paying consulting gigs for splurge trips! I agree it is important to separate out your travel savings and make regular contributions. Then when you spend from there you can really enjoy it on travel and not feel like something else should have been bought.

    1. Love it! We love using our Travel Savings account too cause we find it very easy to keep track of our spending. But also it allows us to really work hard to build it up even more than we might need so we too can splurge.

  32. A travel savings account sounds like a great idea, so we have a dedicated amount going to that. All the tips are really useful. Absolutely right about the planning and loved that quote. It’s true can’t wait to travel soon again! Thanks for sharing.

  33. we have separate travel account. when we want to travel we check out the sum, think of where we want to go, check our schedules (we both have jobs with odd working hours: husband work is contract based so tons of deadlines and in-betweens while I have peak seasons when I am super busy and less busy days)

  34. Ok, you do not know how badly I needed to see this blog post lol. My husband and I have been procrastinating our honeymoon to Hawaii because we know it’s going to be a lot of money, so we haven’t even started our plan for how to save. Thanks for the helpful tips!

    1. Oh Jasmine. I hope you guys get moving and take that Honeymoon to Hawaii! Darcee & I got married at the end of 2019 & used these tips to have a very nice travel savings for our honeymoon Rhine River Cruise and week long adventure after in Prague during the Christmas season at the end of 2019! So, if we can do it, I am sure you guys can too! Can’t wait to see the pics!!!

  35. Excellent list of ideas. My wife and I spent 2 years saving for our trip to Japan and so glad we did. It was a ‘bucket list’ trip we had been talking about for 10 years and so thankful we were able to do it a couple years ago (before COVID altered travel).

    1. So glad to hear that you guys saved up a Vacation Fund for an epic bucket list adventure to Japan. That sounds amazing! With a little planning any trip is possible. So we love hearing how others have had success like this!

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