In today's struggling economy, it is more important than ever to budget our money wisely. Even in better days, I found I could be a staunch penny-pincher when it came to saving money for something I wanted, especially travel. Here are my top ten tactics for saving money for an upcoming vacation:
1. Make a monthly installment into a vacation fund -- Along with regular monthly commitments such as my mortgage, tithe, and savings, I make a small monthly payment into a separate account, a.k.a. the Vacation Fund.
2. Deposit bonus monies or increases in salary into the vacation fund. These events are rare these days, but when they occur, the extra money goes directly into the vacation fund.
3. Set up a coin jar. My husband doesn't like carrying coins in his pocket, so we invariably have a pile of coins laying around and stashed in our car's cup holders. I set up a coin jar in our closet more for organization than savings, but have found it to be a viable resource. One year I deposited $420 into the vacation fund from the coins saved in that jar!
4. Have a garage sale. I purge regularly, and once a year I have a garage sale. The proceeds benefit my vacation fund, of course! Last year I made over $600 from selling items that were collecting dust in my closets!
5. Save on grocery expenses. This is a newer tactic for me, and I'm loving it! I have always clipped coupons, but now I combine that effort with the Grocery Game, a database system that tracks product prices, coupons and sales, and gives members a weekly list of products at a local grocery or drug store that are at "rock bottom" prices. I have saved an average of 52% on my grocery bill each week and expect that to rise as I become more proficient in the Game. As a reward for my efforts, I deposit the amount I save each week into the vacation fund.
6. Cut back on luxuries. I was in the habit of cutting my hair once every four weeks and getting my nails done once every two weeks. I realized that I could actually get by with stretching my hair appointments to every eight weeks and my nail appointments to every three weeks. Tweaking my schedule saves me as much as $725 each year--a nice deposit into the vacation fund!
7. Cut back on or eliminate addictions. For me, it's Sonic Diet Coke; for my husband, it's Starbucks coffee. For fun one day, we added up the amount we spent in a month on these addictions and were stunned. We agreed to cut back on these splurges and put the savings into the vacation fund. Fortunately for me, Sonic now offers a daily "Happy Hour" with half-priced drinks!
8. Eat out one less meal per week. Let's face it, we are an eating-out society. For me, Friday nights became "date nights," which equated to eating out at nice restaurants. Now, we eat in most Fridays and use the time to create a meal together, all the while putting that savings towards our next vacation.
9. Snag the sale item. Anytime I'm fortunate enough to catch a sale price on an item I was prepared to pay full price for, I see it as an opportunity to put the savings into the vacation fund.
10. Ante up. OK, this one is a little silly, but, it works for us. My husband plays golf several times a month and participates in friendly wagering with his buddies. I agree to acquiesce to these outings as long as our vacation fund is the recipient of any winnings he brings home. I like being married to a good golfer!!