With the summer months just around the corner, many of you may be dreaming of your summer vacation. Maybe you see yourself dipping your toes into a white sandy beach, going on an outdoor adventure in a new country, or making memories with friends or family in a new city.
The increased cost of travel these days, especially the cost of air travel, comes as a shock to many stickers. In fact, average airfares in the US increased by 17.7% in March 2023 compared to the previous year.
Planning a vacation takes time and a well-thought-out strategy if you need to stick to a budget. Here are some vacation planning tips to help you get the most bang for your buck so you can get the most fun and relaxation — or adventure! — off your summer vacation.
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Choose your summer vacation destination carefully.
If you’re traveling on a budget, some places are cheaper to travel to. Consider places to go during the off-season, which will not only save you money, but also help you avoid the big crowds. Nobody likes trying to capture a special moment in a photo with a bunch of strangers in the background.
If you’re traveling to another country, currency exchange rates can also make a big difference to your budget. Countries like Vietnam, Mexico, Japan and South Africa are among the best places to visit where the dollar is strong.
Book your trip in advance.
The best time to book domestic flights, according to ThePointsGuy.com, is one to four months in advance, while international flights should be booked six months in advance.
The Google Flights team analyzed five years of airfare data and found that it’s cheaper to fly during the week, with flights departing on Monday, Tuesday and Wednesday 12% cheaper than weekend departures. The same team also found that direct flights were, on average, 20% more expensive than flights with stopovers. So if you have the time and willingness to make an extra stop, you could save some serious money.
Have you ever searched for a specific flight multiple times and then wondered why the fares are going up? Use incognito mode on your browser, as websites track your movements and may increase automatically.
Finally, consider using Google Flights to track flights and receive alerts when prices drop or rise, which can give you insight into when it’s a good time to shop.
Start saving now.
Determine the total cost of your vacation and set up regular automatic transfers from your checking account to your liquid savings account. If you need to save thousands of dollars for a trip, sometimes it’s easier to mentally break your goals down into smaller daily amounts. For example, the idea of saving $20 a day for a few months sounds a lot better than saving $1,800—even though it turns out to be the same thing.
When saving for your trip, consider putting the money in a high-yielding liquid savings account. Since interest rates are on the rise, many online banks offer rates that are even more than 5%. In light of the recent bank failures, it is important to remember that you do not have deposits in any bank that exceed the FDIC insurance limit.
Take advantage of credit card benefits.
Using a credit card is a great way to earn points and pay for travel. The best travel rewards credit cards can offer more than 90,000 bonus points if you spend a certain dollar amount in the first few months of owning the card. They may offer more points if you book travel and accommodation through their website. Some will even offer additional travel deals.
For example, I’ve seen deals on my credit cards that have offered cash back promotions, sometimes up to several hundred dollars, if you book at certain hotel chains. Just make sure you can pay off your credit card debt in full each month. You don’t want to negate that savings by paying high credit card interest on any balance.
When you arrive, don’t forget to ask the locals for help. Tour guides can recommend great must-see attractions, but locals can offer insight into lesser-known travel spots and places to eat. Some of the best restaurants I’ve tried on my travels are smaller businesses that won’t break the bank.
You don’t even have to eat out for every meal. If you’re staying in a place where you can cook your own meals, consider a trip to a local farmers market or deli to prepare your own meal. There’s nothing like eating fresh fruit or vegetables in another country… they just taste better!
Whether you decide to relax locally with a staycation or take a long flight to a remote island, make sure it fits into your budget. A financial stretch can add stress to the whole experience. Taking time for R&R is really relaxing when you know you’ve got your priorities straight.
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC-registered investment advisor headquartered in Long Beach, California. Registration does not imply a specific level of skill or training. Additional information about HH, including our registration status, fees and services, can be found at www.halberthargrove.com. This blog is for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or to provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant.
This article was written by and represents the views of our advisor and not the editorial staff of Kiplinger. You can check the advisor’s record with the SEC or with FINRA.
