When my spouse and I got married, we found ourselves buried under a daunting $45,000+ combined debt. The realization was terrifying as we feared that our golden youthful years would be spent servicing our debts, instead of traversing the world as we dreamt. At the same time, we couldn’t surrender our happiness and aspirations, despite our money-strapped situation. This pushed us to devise a method of saving for holidays, which, contrary to common belief, are essential and not merely a luxury. Beyond relaxation, they provide a mental and emotional rejuvenation, reminding us why we endeavor throughout the year.
So, how did we manage to explore destinations like Costa Rica, Seattle, San Francisco, Vegas, New York, Palm Springs amid substantial debt? It was simple: we prioritized travel. If you are neck-deep in debt, desperate to flee, yet unsure about managing the finances, the first step is to prioritize your vacation. Furthermore, strategize your debt repayment process and treat yourself with a holiday upon achieving your miniature objectives, like paying off a specific debt amount.
Establishing small saving targets is another effective step. You never miss your monthly debt payments, do you? Apply the same commitment to your holiday savings. Every week, reserve $25, $50, or $100 as per your budget. Small weekly contributions are less burdensome and can cumulate pretty nicely over time without hampering your debt repayments.
Credit card reward points can also be a lifesaver. Just like us, consider paying everyday expenses via a credit card and settling the entire due each month. Accumulate the points and solely utilize them for travel-related expenses. For our recent trip to Cabo, we managed to avail $600 from our reward points, which brought down our $2000 expenditure to a manageable $1300 including flight tickets and a luxurious four-night, five-day stay at an all-inclusive hotel.
Lastly, make the most of your connections. Your friends and family can be invaluable resources. Do you know anyone living in an exciting city? Request their couch for a few nights. Are your parents planning their annual Hawaiian trip? Join them. Accommodation often eats up a lion’s share of the trip expenses. However, staying with friends or family can significantly curtail the cost. I have, myself, benefited from staying with friends during my trips to novel locations such as Australia, New Orleans, San Francisco, and London. Also, don’t overlook smaller weekend retreats reachable by road. They can be pocket-friendly options for a rejuvenating break. Visit SmartAsset.com for additional smart saving strategies and advice.
