Taking a vacation should be stress-free. But not if you have to worry about how to pay for it. Ways to get the money for a vacation without taking out a loan.
Banks would love to lend you the money for your dream vacation. They advertise rates as high as 12.99% APR for a $2,000 loan. Say you accept the deal and it takes you two years to pay back the money. That $2,000 vacation will end up costing you $2,519.60. Hope you have a great time on your trip; because you’ll be saddled with a lot more than a little sunburn and sea sickness once you get home.
How to Pay for a Vacation Without Taking out a Loan:
- Open a vacation club account. These are similar to Christmas club accounts. You start putting money away, a little every month, until you have enough to pay for that dream vacation, or simply a short trip to the lake. Whatever it is you decide to do with the money, at least you’ll be the one earning interest, instead of the other way around.
- Set aside extra money you get throughout the year. Say you receive an unexpected holiday bonus, put it towards next summer’s vacation. Just make sure you leave the money in an interest-bearing account and don’t be tempted to spend it on something frivolous before the warm months even arrive.
- Make the kids pitch in. If your children are old enough to earn money, let them know how much it takes to pay for a vacation. Let them assist you in the planning and budgeting of the trip. Then agree to an amount that each family member will contribute. This might take a little extra planning, but the money lessons are invaluable.
- Take on a second job or a part-time business from home. You might be able to not only pay for a vacation but also make a dent on saving for retirement or coming up with the down payment on a new home. This could be the opportunity for a whole new career, or at least a hobby that can also earn some extra cash. With a down economy, it wouldn’t hurt to come up with an alternative income source.
- Don’t finance your vacation with a credit card. Whatever you do, don’t be tempted to whip out the plastic to pay for a trip. The memories will be long gone, but your bill might stay with you for years to come. If you can’t afford an expensive vacation this year, make it a weekend trip to a nearby river or lake; or even day trips to local museums. Then save up for a more elaborate adventure next year.
The copyright of the article Paying for a Vacation in Consumer Education is owned by L. Marie Dubuque. Permission to republish Paying for a Vacation in print or online must be granted by the author in writing.
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