Start Saving Now for your 2017 Summer Vacation

4 Ways To Ensure Your Next Vacay Stays Affordable

•  3 minute read

Next year's summer vacation may be many months away, but a little bit of forethought can prevent a vacation debt hangover next summer.

Courtney, a registered nurse, and her husband decided to take a last-minute vacation before she started a new job—  a seven-day cruise to the eastern Caribbean Islands.

“We chose this option because we thought that cruises are affordable compared with other vacations,” she said. Unfortunately, as many of us have experienced firsthand, they ended up in choppy financial waters. Courtney felt “defeated and disappointed” after coming back to a mountain of credit card debt.

It’s hard to enjoy yourself when you know you are digging yourself into a financial hole.
Next year's summer vacation may be many months away, but a little bit of forethought can prevent a vacation debt hangover next summer.

Don’t Overspend

It’s easy to get caught up in the moment and overspend when you’re on vacation. You’re relaxed and ready to enjoy yourself, so the last thing you’re thinking about is sticking to your budget. This happened to Courtney and her husband on their cruise.

“We had already used up most of our budget for the trip and had very little left to spend once we arrived at each destination. That’s when the credit card came out of the wallet,” Courtney said.

Luckily, Courtney and her husband have learned from their experience – and you can, too. You don’t have to go through a vacation debt hangover when you return from an awesome trip. Here are some tips for you to return recharged rather than ragged.

Learn From The Past

Making mistakes is part of life. However, you should make an effort to learn from them.

For instance, Courtney said, “All was going well until we stepped onto the cruise ship. We were not expecting how expensive things would be.”

It’s difficult to know how much to budget for a trip unless you’ve been on a similar trip before. The next best thing to do is research in advance. There are many travel forums where you can ask people who have been on similar trips about anticipated expenses. Courtney was surprised by the cost of massages, as well as by the expensive menu at the specialty restaurants onboard.

Beware of the Credit Card Trap

Many people break out the credit card to supplement their vacation budget. I suggest you make it as difficult as possible to access. For instance, Courtney and her husband could have put their credit card in a plastic bag, duct taped it shut and left it in their cruise cabin safe during their trip. Doing something like this will give you some time to pause before you charge a purchase that you can’t afford to pay off.

If you don’t trust yourself with a credit card at all, only take cash or a debit card linked to your vacation bank account so that you don’t overspend.

Save Now For Your Next Vacation

One of the best ways to avoid going into debt on your vacation is to save for it today, even if you don’t know where you’ll be going or what you’ll do.

Simply decide on a set amount of money that you want to set aside from each paycheck, and put it in a separate savings account earmarked for your next vacation. You can use an app like Stash Invest to put aside this amount automatically. Personally, my wife and I save $100 per paycheck toward a future vacay. Courtney and her husband plan to do something similar.



If you already have an idea of how much your next vacation will cost, you can divide the total cost by the number of paychecks you have until you leave. That calculation will tell you how much you need to save each paycheck in order to pay for your vacation in full beforehand.

If you don’t know where you want to go yet, save anyway. Then, when you’re ready to take a trip, look at your vacation savings and find a trip that fits your budget.