Freeing Up Money for Your Summer Vacation

Memorial Day is just around the corner, and we all know what that means: summer is almost here! Which also means that summer vacation is on everyone’s minds. But with the cost of everything creeping higher and higher thanks to recent inflation, the cost of summer vacation is also on everyone’s minds. So today we are talking about how you can free up some of your hard earned money and use it to relax.

Here are our top seven tips to free up some money for your summer vacation.

Tip #1: Create A Vacation Savings Account and Firm Vacation Budget

Planning for your summer activities is the key to success. Creating a separate account that is just for your vacation spending can help ensure you have enough funds for whatever your vacation plans are. First, decide on the basics of your vacation: the what, the where, and the when. Then do your research. Set aside a few hours a week to do research and make sure you have a good sense of the costs of your desired vacation. And always add a few hundred dollars as a buffer. Remember: emergencies happen on vacations as well.

Now that you know how much your vacation will cost, you can create your savings goal.

Modify your existing budget to include your vacation savings account. (You have an existing budget, right? If not, be sure to create one using our tips here). Make sure your vacation savings are separate from your rainy day fund – you never want to sacrifice your emergency fund for some fun in the sun. Based on the time you have until your vacation, you can determine how much money to set aside every week to ensure you have enough saved by the time your vacation rolls around.

Be sure to budget for the following for any vacations:

• Round trip travel expenses
• Lodging
• Local transportation
• Meals
• Activities 
• Souvenirs/ extra spending money

Creating a budget for your vacation is key to making sure you have the necessary funds to enjoy your vacation without sacrificing your financial wellbeing.

Tip #2: Edit Your Spending

Go through your personal budget carefully and see what you can edit out. Are there subscription services you don’t use? Cancel them. Do you buy brand names at the grocery store? Try switching to generic. Do you use coupons? Go online to find deals on your favorite products.

Here are a few other tips to cut your spending:

• Use store rewards cards for extra savings
• Cook at home more often
• Combine trips out when possible to avoid extra mileage (and extra gas)
• Find a cheaper cell phone plan
• Shop second hand
• Reduce your utility use (such as electricity and water)
• Ditch your cable plan or satellite dish

These are all small changes that can result in big savings. Get creative when looking at your budget and look for other ways to cut costs and in turn save for your summer vacation.

Tip #3: Set Up An Automatic Transfer To Your Savings

Once you have your vacation savings account set up, you know how much money you need to save. Adjust your direct deposit to allocate some of your paycheck to your vacation fund. Even if it’s just a small amount of your paycheck, it can add up over the weeks and months.

Tip #4: Refinance Your Car Loan

Refinancing your car loan is a great way to free up some money for your summer vacation. You can save money by:

• Refinancing to a lower car loan APR. If our credit score has improved since your initial car loan, there’s a good chance you may qualify for a lower car loan APR. You may also qualify for a better APR if the market rates are lower than they were when you initially got your car loan (and since we are still seeing historic lows for car loan rates, the market rates are most likely lower).
• Shortening your repayment period. By shortening your repayment period, you will pay less interest overall in the life of your loan. Your monthly payments will increase, but you will be saving money overall.
• Lengthening your repayment period. By lengthening your repayment period, you will decrease your monthly payments. You will end up paying more money over the life of your loan, but you will save money in the short term, money that you can put towards your summer vacation fund.

If refinancing your car sounds like a good option for you, the experts at Auto Approve can help you get started! We have relationships with lenders across the country and can secure you the best car refinance deals possible. 

Tip #5: Count Your Pennies

Literally! Saving all of your change may seem old fashioned, but saving up your change can result in some real money. Whether it’s your childhood piggybank or a jar on your dresser, have a spot where you can keep all of your loose change and exchange it at your bank before your vacation.

Tip #6: Book Ahead Of Time

If your vacation involves airfare and hotels, be sure to look for reservations well ahead of time. The earlier you book your flights and hotel, the better deals you will secure (and the more options you will have!) 

To get the best deals on flights, you can set up an alert on Google Flights to tell you when the airfares are the cheapest. Flying on a Tuesday, Wednesday, or Saturday will usually get you the best rates, so try to be flexible with your travel dates to secure the best deals. To get the best deals on hotels, you can use lodging search engines like Hotels.com or Kayak.com to get the lowest rates.

Tip #7: Reserve “Unexpected” Money For Your Vacation

While tax refunds and job bonuses aren’t exactly “unexpected”, they are pools of income that most people do not typically have allocated for certain things. Use these funds to pay for the vacation you’ve always wanted. 

Those are our top tips for saving money and having your best summer to date.

Summer is just around the corner which means it's crunch time when it comes to financing our big plans. We hope these tips can help you loosen up some space in your budget so you can fully enjoy the sun and fun the summer brings!

Refinancing your car loan is a great way to save hundreds (if not thousands!) of dollars per year, so be sure to contact Auto Approve today to start saving. Just think of the amazing vacation you could pay for simply by refinancing your car! So don’t wait – get your free quote today!