5 Smart Tips to Save for Your Next Vacation
By Nicole Young on May 5, 2025
Article in Greet Western Springs Written by Randy Porzel, CFP®, RICP®
After enduring a long winter filled with shovels and snowplows you may find yourself daydreaming about a vacation. As you imagine yourself on sandy beaches with sunscreen in hand, the reality of vacation costs might bring you back to earth. But with some smart planning and budgeting, your dream can become a reality. Here are five money-saving tips to help you get closer to your ideal escape.
Set a Vacation Budget
Your travel costs will vary depending on where you go, where you stay, and what time of the year you travel. For example, you might want to go to Sardinia in July, knowing that summer is the peak season, hotel and flight prices will likely be more expensive than they would during the off-season. You should also account for meals, souvenirs, and activities such as visiting museums, going on water excursions, or doing a food tour.
Establish a Savings Goal
After opening a savings account and setting a budget, you should think about what your savings goal should be. According to Fidelity, Americans spend an average of 3% of their annual pretax income on vacation.[2] Below is an example of how long it would take to save $3,600 or 3% of your pretax income if you made $120,000 a year.
| Month | Amount Saved |
| 1 month | $300 |
| 3 months | $900 |
| 6 months | $1,800 |
| 9 months | $2,700 |
| 12 months | $3,600 |
Take Advantage of Financial Windfall
When you receive a financial windfall, such as an inheritance, annual bonus, birthday money, or proceeds from selling an asset, consider allocating some of those funds toward your vacation. However, it’s crucial to establish goals and avoid acting on impulse. If you have significant debt, prioritize paying it off before using the windfall for a vacation.
Maximize Your Credit Card’s Rewards and Points
Post-COVID, many major airlines have devalued their credit card programs by reducing benefits like complimentary lounge access.[3] Additionally, some hotel chains and airlines have increased the number of points needed to book trips. For example, a stay at a five-star resort that required 22,000 points in 2021 might now cost 27,000 points. With these changes becoming more frequent, travelers should use their points and rewards as soon as possible to avoid losing out on opportunities.
Be Flexible with Travel Dates and Destination
Airline and hotel prices fluctuate based on supply and demand, and the number of flight options available to a destination. If you are able to be flexible you can often benefit from discounted fares. Google’s flight search tool allows you to explore fares to destinations worldwide, providing the cheapest dates within a month or season.
Final Thoughts
Implementing these money-saving tips can help you save for your trip and get the most value for your money. If you need assistance with budgeting for an upcoming trip, please reach out to your advisor to set clear savings goals.
Article written by: Randy Porzel, Partner, CFP®, RICP®
[1] National Rates and Rate Caps | FDIC.gov. (2025, February 18). https://www.fdic.gov/national-rates-and-rate-caps
[2] Up, up, and away! Saving for a vacation. (2024, July 30). https://www.fidelity.com/learning-center/personal-finance/saving-for-vacation
[3] Staples, A. (2025, February 13). Delta walks back some of its lounge access changes with American Express cards — but is it enough to restore their value? CNBC. https://www.cnbc.com/select/delta-walks-back-lounge-access-benefit-cuts-on-amex-cards/