Fund Your Next Vacation With One of These Methods

Going on vacation has numerous benefits. Working 5 days a week, 52 weeks a year can lead to burnout if you don’t get a break. The mental health benefits of taking vacations and vacation time have been proven time and time again. It makes you less stressed and ultimately a better employee if you get some time away and off the clock.

Sometimes it’s hard trying to figure out the best way to fund a trip. This is especially true if you want to head out on a more expensive adventure. You can use one of these methods to help you fund your next trip, especially if you don’t have a lot of time to save up for it.

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Home Equity Loan

If you are taking a once-in-a-lifetime trip with a high price tag, you may want to consider a home equity loan. Getting the equity out of your house usually has the best interest rates of any lending option. Sure, you could take out a personal loan to go on vacation, but the terms of those loans and the interest rates are usually not very good.

home on money

Plus, you typically need a great credit score to qualify. Although, you can use house equity with a low credit score to get the cash you need to take a trip. Other uses of equity could be to make home improvements or pay off medical bills.

If you plan on taking out a home equity loan, it would be wise to have a plan for repayment. Check out my simple financial planner, available for $3.99.

Leverage Your Credit Card Cash Back

Many people strategically use their credit card mileage points or cashback to help pay for things like vacations. They put all their bills on the card and then pay them off at the end of the month.

girl with credit card

This option is great because you’re spending money you would spend already, and you can earn rewards, points, and money by doing it. And when you pay off the card each month, you never pay any interest on those expenses.

Mr. Misadventures and I have a Southwest Visa and Delta and Bonvoy American Expresses for precisely this reason!

Try One of These Side Gigs

Another way to accelerate your travel plans and go on vacation sooner is to add a side gig to your life. Some options help you make hundreds or even thousands of dollars per month with very little time input. While DoorDash, Uber, and other contract gigs are easy to get, you’d benefit even more from jobs that use your skills on the side. Graphic design, web design, app development, writing, e-commerce, Amazon FBA, and even dog sitting or dog walking can earn you a decent side income.

girl in front of laptop

Getting started may require taking a course or learning tips from other sellers. Also, if you have a bachelor’s degree and don’t mind working odd hours, you could qualify for teaching ESL classes to kids overseas.

Use Automatic Deposits to Your Savings

Saving can be hard if the money just sits in your checking account. Try having money automatically put into a different account each time you get paid. This strategy for funding your vacation plans help you put your money out of sight and out of mind.

Some banks will allow you to set up recurring withdrawals to a savings account and some employers let you designate more than one location for your direct deposits. No matter which option you choose, make sure you put your travel money in a place that you don’t access daily. 

colored envelopes

Another method that is popular is the “envelope budget system.” This system allows you to portion out your monthly income toward different spending categories in actual physical envelopes. I really LOVE this colorful Clever Fox system!

Cash Out Some Vacation Time

Employers each have unique policies around vacation time and PTO. If you save up too many days, most of them stop letting you accumulate more unless you take some time off. These employers will often allow their employees to cash out some of those days.

vacation planning

If your work allows this, cash-out part of your vacation time so you can fund your next trip, then put in a request for the days you want off. You’ll be amazed at how nice it feels to simply have the money you need when you need it to go on vacation.

girl on bed

Going on vacation isn’t just a luxury, for some, it’s a critical part of caring for their mental health. You’ll find yourself feeling less stressed and overwhelmed when you prioritize taking time off and visiting new places. Plus, not all trips have to cost a fortune.

There are so many deals that might get you an incredible vacation for under $1000 per person including airfare. Be flexible about where you want to go and you can almost always find something to fit into your budget.

How about you? Have any tips for saving money for vacations? Do share!

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  1. Thanks for sharing this!

  2. Forever My Little Moon says:

    We have a savings account but we haven’t been traveling much due to Covid. So far most of that money has gone to fixing up our home, hopefully next summer we’ll get to go somewhere!

  3. Tara Pittman says:

    I would have never thought of using a home equity loan for a vacation. That seems risky to me.

  4. These are all wonderful ideas. I love being able to save however I can. My husband and I are always saving up money for vacation.

  5. Gervin Khan says:

    Wow! These are awesome ways to fund our vacation without worrying about where to get it! Thanks and will definitely do this!

  6. Shelley King says:

    I am the queen of credit card rewards! I use my card strategy to earn more. Pays for Vacation every year!

  7. IceCreamnStickyFingers says:

    I love these ideas on how to save money for a vacation. I haven’t been anywhere in a long time and need a change of scenery for a week or so. Thank you for sharing these ideas.

  8. These are wonderful tips that I will keep in mind for my next vacation. Thanks for sharing is amazing information with us.

  9. These are some great tips to prepare for vacation funds! Thank you for sharing!

  10. My boss never let us cash out vacation days. We had to take the time.

  11. Beautiful Touches says:

    There’s actually a lot of services now that also offer a pay over time payment plan for airfare and hotels!

  12. Everything Enchanting says:

    Some great suggestions here! We try to save some amount of money for travel every month:)

  13. I haven’t thought about some of these. Thank you for the tips and ideas!

  14. Richelle Milar says:

    What a really wonderful and great ideas you have here! Thank you so much for sharing this with us! This is so informative!

  15. I love travelling and having enough money is the most important part. Thanks for these suggestions!

  16. Whitney Stewart says:

    I totally agree with u. Going on vacations r a great way to unwind and relax, but if your a busy family this can prove easier said then done. Great advice!

  17. The best way to save money for vacation is automatic savings. Using your home is dangerous.

  18. These are helpful informations. Thank you so much for sharing this to us.