It’s no secret that many Americans find it difficult to save money for vacation. But there’s an easy and creative way to set aside funds for a future getaway.
To make this strategy work, you’re going to have to envision a specific goal, like a 10-day trip. Next, all you have to do is open a vacation savings account.
Want to Save Money? Here’s an Easy Savings Trick You Can Do Today
Here’s how opening a vacation savings account can work for you:
Many banks allow you to open an account and name it whatever you like. In the banking industry they call them nickname accounts. Whatever name you choose, make sure it inspires you to save.
You can call it “Spring Vacation” or “Hawaii Trip” or anything like that.
Money expert Clark Howard says naming your account can be a real motivational tool to get you to save.
“Any time you set a clear goal and a clear time to get to that goal, whatever it is, whether it’s for a vacation or saving money for your kid’s college, having a goal and having a specific time horizon is key to reaching that goal.”
He adds: “Setting a goal doesn’t mean you’re going to get there, but you’re much more likely to get it done if you have a specific thing you’re trying to do and a specific time you’re trying to do it within.”
If you want to turn this trick into a reality, it only works if you open an account and put money in it. So do it now!
3 Steps to Save Right Now
- Automate your account: Set up your account so that you deposit a bit of your paycheck each pay period. This way, you don’t even have to think about saving. You can also schedule transfers from some of your other accounts if you like.
- Incorporate a savings challenge: Want to make a game of it? Do a savings challenge. By starting off saving just $10 a week, you can win a $500 challenge.
- Stay motivated: Part of the battle of saving is not to go into debt by spending unnecessarily. If you get discouraged or need motivation, join Clark’s Ditch your Debt Facebook group.
Looking for a new place to stash your savings? See Team Clark’s list of the best online banks.