Going on vacation should be a way to relieve stress. Going into debt because you couldn’t afford the vacation is counter productive. The best way to do this is to have a separate savings account specifically for your vacations. You typically get a week or two a year anyway at most jobs for a vacation. Save a percentage of your paycheck each time in a high yield savings account such as Marcus or Ally and by the time each vacation rolls up each year you will already have it paid for.

Budget

How much you need will depend on how much you are thinking the vacation will be. Plan ahead as many of your expenses as you can. Purchase the flights and accommodations well ahead of time to save money. Think of how much you may need for food and miscellaneous expenses. You could do so as you accumulate certain amounts in your savings along the way. The best way to keep track of your finances is to use a money management tool. My favorite is Mint since it is free and easy to use. You can set up budgets for any of your expenses as well as goals such as your vacation.

Debt

If you are currently in debt you may want to look into getting out of it first. The best one to listen to on getting out of debt would be Dave Ramsey. He has tools, classes, and even a radio show with tips on how to get out of debt. I highly recommend his book The Total Money Makeover. Yes another expense, right? Not necessarily, check out your local library. They may have a few copies for you to borrow for free. Also, if you need more cash there are a variety of ways to make money.

Once you are out of debt come back here to get more money saving tips!