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 Goal

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
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a) Decide Where You Want To Go

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.

2) Create a Dedicated 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 Monthly

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 Acorns

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 Progress 

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!

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!

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