DD
Danielle Desir
22 days ago

Your Save For Vacation App

traveling
money
If you’re feeling overwhelmed by the trip planning process, first things first, take a deep breath and let it sink in that you’re actually going on a trip.

Perhaps this is a trip to one of your favorite places in the world (Iceland is mine) or maybe you’re going to a new country where you don’t speak the language. Either way, you’re planning a trip and that’s exciting!

While there may be a lot of prep work involved before you go, I will help you break down one of the hardest components: getting the funds to go on the trip. There are many tips and tricks to make saving for vacation simple and consistent.

And you can take advantage of a digital tool at your disposal. Think of Nav.it as your ultimate save for vacation app.

Different funds for different accounts
When it comes to budgeting in general, I recommend separating your money into multiple bank accounts. If you want to travel the world, one bank account that I highly recommend having is a "travel fund". A travel fund is simply a bank account where you save money for travel.

Why have a travel fund?
Having a bank account dedicated to travel ensures that you’re actively working toward your travel savings goals. It prevents overspending and undersaving, and at a glance, you know exactly how much you have saved up for a trip.

Your travel fund can be a checking account, a savings account or money market. Give this special bank account a nickname like “Weekend Getaway with Bae”.

Tool tip: Want to see all of your money in one place? Using Nav.it, you can connect your savings, checking and credit card accounts so you can see all transactions and saved up funds in one place and get an overview of your overall spending. 

Using this save for vacation app will help you decide how much you might be able to contribute to your “Weekend Getaway with Bae” fund (and if skipping a couple latte runs might help you reach your travel goals sooner!).

Why save for travel consistently?
After you open a bank account devoted solely to travel, it makes it easy to save for your next adventure each paycheck.

Determine an amount you can afford to save per pay period and automatically save that same amount each time you get paid via direct deposit.

Tool tip: Once again, if you’re using the save for vacation app to track your spending to decide how much you can put toward your travel fund, you can take advantage of the reminder setting in the Nav.it app.

If there is a category on your overall monthly spending that you want to reduce (lattes, brunches, impulse shopping buys), you can change the budget line total for the month, and then set up alerts to ping you when you’ve spent 50 or 90 percent of that line item.

Let the app do the work for you!

How I plan for my trips
When I first started traveling, I saved $25 each paycheck. Now I save upwards of $200 per month. Whatever amount you decide to save, remember to save consistently. Consistency is key to developing good financial habits.

Saving consistently also means that you’ll have money available to hop on a good flight deal or go on a spontaneous trip without having to worry about your finances. Woohoo! Sounds nice, right?

The key takeaway here, automate saving for travel.

Budget for your trip
Next, create a budget for your vacation. Put together a list of places you want to visit and use blogs to figure out how much it will cost you to get there, eat, and do fun activities.

Pro Tip: Budget Your Trip is a helpful resource for determining travel costs around the world. Add all of your travel costs together to set your vacation budget.

Tool tip: The save for vacation app has yet another feature to help you reach your happiness (aka travel) goals! On the Goals tab, set up your trip budget goal (the magic number you figured out above), and it will show you how much you need to save per day (or week, or month) to achieve these goals. 

Once you have a trip budget, start looking for flight deals! You’ve conquered a major milestone, Nav.igator!

On The Thought Card, Danielle Desir empowers readers to make informed financial decisions and embrace their innerfinancially savvy traveler. She also has a fun podcast! Check out The Thought Card podcast here!