The weather is changing, the birds are chirping, flowers are blooming, and springtime is finally here. However, summer vacation will be here before you know it. No matter what your summer vacation plans are — going somewhere fun or just staying at home — it’s a good idea to come up with a financial plan sooner rather than later. You can start saving money for summer now with these quick tips from Denise Fries, financial consultant and owner of Fries Financial Services.
Check your credit cards Many credit cards have reward programs, says Fries. The reward points could be specifically towards airline or travel costs or even just cash back rewards. Any of these can be put towards travel expenses. If your credit card doesn’t accrue points, Fries says to consider switching cards. “Don’t get in debt,” she warns. “Use the card for convenience then pay it off.”
Frequent flier programs These types of programs could help you accrue points or miles from having taken trips before, says Fries. Many airlines also reward you if you have been bumped from a flight. “Again, we’re looking for free money,” she says. “The best money is free money. Points, miles, don’t forget you have them.”
Holidays “If there is a holiday coming up — Christmas, birthday, etc. — ask your friends and family for travel-related gift cards,” says Fries. “A lot of times people think buying people a gift card is a cop out, but ask in the right way if it’s truly something you want.” Travel-related gift cards can help with airfare, hotel stay, food, gas, or other expenses.
Modify your spending “Any financial planner is going to tell you to look at what you spend,” says Fries. “Most people waste a certain amount of money every month.” This could be due to auto-paying for services you don’t use, making unnecessary purchases, or getting into bad spending habits. One of the worst spending habits people make is eating out too frequently, Fries explains. “Going out to eat or buying lunch out is a big expense that you can avoid,” she says. “You can save $7 a day by not eating lunch out, and it actually saves a lot.” Her suggestion is to pick one week a month to eat out of the pantry or freezer. Shopping for groceries online also saves time and money, as people are less likely to browse the aisles and pick up extra items, Fries says.
Earn more money If you are able to, pick up more shifts at work, take on an additional part-time job, consult, help a friend with a project, or tutor, says Fries.
Set up systematic transfers Fries includes travel in her monthly budget, and says it’s easy for others to do the same. You can set up a savings account to use for travel (or other expenses). A systematic transfer will move money from your checking to savings account each month.
Use unexpected money If unexpected money comes your way, for example a tax refund, you can set that money aside as part of your travel fund, says Fries.
Shop around for deals Certain times of the year have better deals for travel. For example, it’s going to be more expensive to travel around a holiday or on a weekend, says Fries. Be aware of the best times to book hotels or airfare, and when the off-season is for that location. “If you can go in a more down-time, you’re generally going to get a lot of savings,” says Fries.
Talk to a financial planner Financial planners can help you with any short-term or long-term goals. Whether those goals are travel related or not, financial planners can coach you through any situation, explains Fries. “For everyone, if you have an income, a steady income, and you have goals that you would like to accomplish, a financial planner is a coach and they can help you apply that income in the best manner they can to accomplish goals,” she says. “There’s never a wrong time to talk to a financial planner.”
