Planning a Vacation - Save Now or Pay More Later - First Internet Bank

Planning a Vacation — Save Now or Pay More Later

By First IB on June 23, 2015

Posted in:

If a summer vacation is in your plans, consider the financial implications as you finish planning your trip. How much is the vacation going to cost? Will you drive or fly? Can you save money by looking for discounts to attractions and activities? And, ultimately, how will you pay for it?

The actual costs of your getaway will depend on the type of trip you plan to take. At a minimum, you’ll likely have expenses for transportation, accommodations, meals, activities, and all of the extras along the way (and don’t forget souvenirs!). Here’s a worksheet that may help.

Estimated Vacation Cost Worksheet
 Transportation
 Airline tickets
 Parking or transportation to/from airport
 Rental car
 Taxis or other transportation
 Accommodations
 Hotel $_____ x ___ nights
 Meals $_____ x ___ days
 Activities
 Entertainment/nightlife $____ x ___days
 Tours
 Admission fees
 Shopping
 Other
 Estimated Total

Save Before You Go or Pay More Later
One of the best decisions you can make is to save the money for your trip before you head to the airport. Saving before you go will allow you to enjoy the trip without the worry of coming home to a hefty credit card bill.

Use this simple chart to get an idea of the amount you’d need to save every month so you’ll have what you need before the trip.

Amount you want to save Amount to save every month – 6 months Amount to save every month – 12 months Amount to save every month – 18 months
 $2,500  $417  $208  $139
 $5,000  $833  $417  $278
 $7,500  $1,250  $625  $417
 $10,000  $1,667  $833  $556

Start Saving Automatically
Does saving seem overwhelming? There’s no easier way to save than with an automatic savings plan. If you’re already using direct deposit for your paycheck, set up an automatic transfer for the amount you want to save each month. You can also ask your employer to deduct the goal amount each month and deposit it into the account of your choice. (May we recommend a First IB Savings or Money Market Savings account to earn a competitive interest rate?)

Your vacation should be fun and carefree. Saving before you go can provide the peace of mind knowing that the cost is covered.

Contact a First IB Banking Specialist at 1-888-873-3424 or bank@firstib.com with questions about automatic transfer or savings products. We’ll help you even if you don’t plan to send us a postcard.

X

It's Different Here!