Why a Financial Planner Says to Save for 2024 Travel Starting Now


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Travel can have positive effects on your health, well-being, and happiness. In my book, taking care of yourself and refueling is a necessary expense.

With the start of a new year, it’s time to start thinking about any travel plans you may have, or want to have.

You can imagine how travel costs can add up quickly, especially if you’re considering international travel, longer stays, or luxury trips. Saving towards a travel fund at the start of the new year can help you avoid taking on credit card debt and help you achieve your travel goals.

Here’s why I recommend my clients who want to travel in 2024 (or later) start saving today:

1. Take advantage of compound interest

There are many benefits to saving for your vacation ahead of time such as earning compound interest on your cash. Instead of scrambling to find the cash when the trip arrives, automate savings each pay period or month to a high-yield savings account, many of which are currently offering rates over 5%.

Starting early and consistently saving to a high-yield savings account can help you achieve your travel goals. With a little help of compound interest, you can ensure that you have sufficient funds for your trip before it arrives. As an added benefit, you may use some of the interest earned to enhance your trip by adding activities such as excursions or spa treatments.

2. Score early-bird deals

Saving for a trip months in advance not only allows you to earn compound interest, but also can help you secure some deals. There are many travel-related promotions and early-bird discounts offered to those who plan and book their trips in advance. Having a well-funded travel fund allows you to seize the opportunity.

By booking a trip early (especially if you’re using one of the best travel credit cards), you increase your chances of getting the accommodations or flights you desire, such as a hotel room with a view or a seat on the front of the plane. In addition, there are typically steep discounts offered if you pay for the trip in full upfront.

However, be sure to study the cancellation policies for the hotels and flights before you book your trip. You may have to budget for travel insurance to ensure you don’t lose your deposit in case of an emergency.

3. Build long-term saving habits

Another great benefit of creating a travel fund to start the new year is that you begin to build a long-term savings habit. Automating savings to a travel fund each pay period encourages healthy saving habits and financial discipline. Also, by prioritizing travel and including it in your budget, you can improve your overall well-being. This is a very important habit that can help you achieve your overall financial goals.

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4. Build anticipation for the trip

One underrated benefit of saving for a trip months in advance is the build-up of anticipation. Every once in a while, we need something exciting to look forward to to keep us going.

By seeing your travel fund grow each month, your excitement level will increase. Knowing that you have the funds for a planned trip will also relieve anxiety as the trip gets closer — not to mention that booking in advance makes it easier to plan and get time off approved at work.

5. Prioritize travel in your budget

To build a travel fund at the start of the new year, you must include travel as a line item in your budget. This will help you prioritize travel and ensure that you allocate funds to it. By including travel as line item in your budget, you can reduce the chance of impulsive overspending on things that aren’t nearly as important.

A travel fund allows you to prioritize what matters most and ensures that you have the funds to explore the world and create meaningful memories.





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