How to Plan a Vacation Without Going Into Debt
Budgeting for your next trip? Consider this 11-point checklist for ways to save.
Do you shy away from vacation planning because you’re afraid of how much it will cost? There’s good news: It is possible, with some advance planning, flexibility and realistic expectations, to plan an awesome vacation on a tight budget. Strategic small savings can really add up and compound into a big payoff. And, by using money-saving tips throughout your vacation, you can avoid receiving a scary credit card bill after returning home.
The following 11 travel tips will help you manage your money whenever and wherever you travel so you can stay debt free.
1. Start Saving Now
It’s never too early to start squirreling money away for a future trip. Create a savings plan long before you begin planning an actual vacation. Your savings blueprint can involve the whole family and encourage everyone to save a bit each week—from your teenager contributing a few dollars from a babysitting gig to Mom and Dad putting a certain percentage of their paychecks into the account.
To make saving easier, open an NEA Online Savings Account, offered by Discover Bank, Member FDIC, for as little as $500. You can contribute a set amount to the account each week to reach your savings goal.
2. Set Your Budget
This goes hand-in-hand with your savings plan. You want to remain debt-free after your trip, so some advance planning will help you achieve that goal. Take an honest look at your finances and set a realistic budget. If you’ve already saved for your getaway, decide if you’ll use the entire vacation fund or just use part of it and save the rest for another trip. If you haven’t started saving yet, take a look at what you can truthfully put away each month, along with the time you have left before you want to travel, and set a spending limit that matches what you can save. Once you know how much money you have to play with, figure out where those dollars will take you. For example, if you know you can save $100 a month, and you want to travel a year from now, you’ll need to plan a trip that costs around $1,200. To learn more about how to create a realistic budget, see “6 Simple Steps to Create a Stress-free Budget .”
3. Find a Travel Agent
You probably guessed that Step 3 to planning a debt-free vacation would be selecting a destination, and although your instincts are good, savvy travelers will first make a call to a travel agent. Some luxury travel planners do charge for their services, but most agents are paid via commissions from the cruises, hotels and flights they book on your behalf. Not only is their expert help free to you, you’ll save money and time on your trip, thanks to their experience, knowledge and connections. Give your travel agent your budget and a list of the types of activities your family enjoys, and he or she will come back to you with options that might never have crossed your mind.
Oftentimes, agents are also privy to special resort and travel package promotions. Sure, you might be able to do all the research yourself, but it would certainly take longer, and there’s no guarantee you’d come up with the best options. Even if a travel agent can’t do better on pricing the nightly rate for a particular trip, many can secure perks—such as room upgrades, free valet parking and complimentary breakfasts—that you can’t get on your own.
4. Determine Your Destination
If you don’t have the help of a travel agent, think about locations that won’t require expensive airline tickets. If you do want to travel a bit further afield via air, start your research with the airlines that serve your local airport. Go to their websites and click their “where we fly” links or download their complete flight schedules. It’s a great method for generating affordable destination ideas.
Keep in mind that finding affordable accommodations in big cities like New York or San Francisco can be really difficult. If you have your heart set on a pricy destination, look for home-stay lodgings through sites like Airbnb or HomeAway, or stay in a nearby—and less expensive—suburb. For example, if hotels in Orlando are too expensive, stay in Kissimmee instead.
WAYS TO HELP STAY DEBT-FREE
Every time you plan a trip, run through the following tips to see if you can use one or more to whittle down the cost of your vacation.
5. Travel During Low Season
Travel agents know the best times of the year to travel to any destination in order to snag the lowest rates. If you’re making your own arrangements, visit your destination when crowds are lightest. Search the region’s visitors bureau website and look for the calendar that tells you when to expect high and low season.
“Consider locations during their ‘off’ or ‘shoulder’ season,” suggests Lillie Marshall, a teacher and publisher of TeachingTraveling.com. “Our family traveled to Ireland in February, and though it was slightly chilly, it was still warmer than Boston. We had a fantastic time and enjoyed much lower prices and fewer crowds!”
6. Fly Midweek or Saturday Morning
It’s generally less expensive to fly midweek and on Saturday mornings.
7. Use a Rewards or Cash Back Credit Card
The NEA Cash Rewards Credit Card offers members a $150 cash rewards bonus after spending at least $500 on purchases in the first 90 days. You’ll earn 1% cash back everywhere, every time, 2% cash back at grocery stores and wholesale clubs and 3% cash back on gas, up to $2,500 in grocery/wholesale club/gas quarterly spend. Before your trip, use your card for everyday purchases and then stash your cash-back rewards into your savings account. Then during your trip, charge your vacation expenses to the card and be rewarded for the dollars spent.
8. Check Membership Discounts and Benefits
If you belong to certain organizations, you may be entitled to specific discounts when it comes to travel. For example, as an NEA member you can take advantage of several travel discounts, including those on car rentals, group tours and hotels like Red Roof Inn. You can also book discounted vacation packages through wholesale clubs like Costco, and NEA Click & Save provides discounts on everything from flights to popular hotels and even cruises.
Sign up for Groupon to find discounts on hotels, attractions and restaurants at your travel destination (and at home).
Military and government employees may also be eligible for discount rates at hotels, attractions and restaurants across the country.
Finally, if you work for a local, county, federal or state government—such as a state university—ask for discount details.
9. Go with a Group
When you travel with friends or extended family, ask for a group discount when booking multiple hotel rooms or cruise cabins. Start by asking for the group or reunion department. Walt Disney World, for example, will assign a representative that will facilitate group discounts at Disney properties. Some discounts are granted for as few as 10 people, but if your group is large, you may even qualify for a free room.
Also, look to group tour companies such as Trafalgar and G Adventures (both of which offer discounts for NEA members) and Adventures By Disney. For example, with Trafalgar, if you travel with 5 or more people, you’ll each qualify for a 5% discount. And if there are even more of you traveling together, you’ll get a choice of other benefits, including the chance for someone to travel for free.
Photo courtesy of G Adventures
10. Compare A La Carte with All-Inclusive Options
It’s not easy to budget for the cost of meals and activities. Unexpected expenses pop up on every vacation. An all-inclusive resort charges you one price and includes all your meals and on-site entertainment and activities. All-inclusive packages are popular in destinations such as the Caribbean, but you may find one within driving distance, such as the Tyler Place Family Resort in Swanton, Vermont; Woodloch Pines Resort in the Poconos region of Pennsylvania; or the Club Med Sandpiper Bay in Port Saint Lucie, Florida.
At the very least, look for a hotel that offers all guests a free hot breakfast daily. The savings can be huge for larger families staying at brands such as select Red Roof Inns (save even more with your NEA discount!), Country Inns & Suites, Embassy Suites and Hampton Inn—all of which offer a free breakfast perk.
11. Get Travel Insurance
A vacation is an investment, so protect it. Travel insurance is a relatively low, upfront cost that could ultimately save you thousands of dollars if you have to change or cancel your trip because your son breaks his leg a week before departure or a hurricane threatens to veer toward your vacation destination.
More money-saving travel tips
- How to Dine on a Dime While Traveling
- Stretch Your Travel Budget by Avoiding These 6 Fees
- Lower Your Travel Costs Using the “Sharing Economy”
Budget-friendly vacation inspiration
With NEA Vacations, you can book, plan, save and earn rewards.
Costco Membership Includes Travel Benefits
Join Costco to receive $50 in coupons, including 3 free items. Plus, enjoy access to special savings and member-only extras on vacation packages, cruises and rental cars.