How to make that vacation a financial reality

Piggy bank sitting on a beach wearing sunglasses. Hand is reaching down to put money into the piggy. — Want to fit your dream getaway into your budget? Start saving now, travel in the off-season, and prioritize what's most important

(Image credit: hatman12 / Getty Images)

Taking a vacation may sound like a dream — until the reality of just how much a trip will actually cost comes crashing down on you. There's the flights to worry about, plus lodging, meals and the added cost of any activities you want to do while you're there. And while some people get paid vacation time, it might also be necessary for you to take a break from earning to go on a trip.

Put all of that together, and it's easy to decide a holiday simply is not within your budget. But with a little careful planning, it is possible to make a getaway happen.

Have a plan for saving

Rather than distantly imagining an eventual vacation, start saving like it's actually going to happen. It is helpful to come up with an estimate of how much the trip is likely to cost you, making sure to factor in "airfare, lodging, meals, ground transportation, souvenirs and special experiences," said Kiplinger.

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Doing that legwork will give you an idea of a reasonable savings goal to set for your trip. To figure out how soon you can hit that goal, review your budget and figure out how much is leftover after you have met your monthly obligations. Then, said SoFi, "using that number, break down how much you're able or willing to allot" towards your vacation fund.

You might even set up a separate savings account or a category within your savings that is earmarked for your vacation fund so you can easily track your progress. Another way to expedite progress is by "putting the money in a liquid high-yield savings account," which will allow you to earn interest on the money you save, said Kiplinger.

Stay open on your destination and travel dates

Destinations that are astronomically expensive during peak season can look more reasonable in the off-months, as "plane tickets and hotel rates will be lower," said Ally. As an added bonus, you will dodge the crowds.

Even being a little flexible on the specific dates you travel can offer savings. You might take a moment to "compare flight costs on weekends versus weekdays to find travel deals," said SoFi, and you can also aim to "avoid the usual school holiday dates" if your kids "aren't yet school age."

If you are not flexible on timing, consider a destination that is more off the beaten path. Maybe you had a certain spot in mind, but "think about alternatives that give you some of the same vibe (a dynamic city or a chic place by the sea) for a lower price," said SoFi.

Pick your vacationing priorities

In an ideal world, you'd have it all on your vacation. But most of us have limitations, so it is helpful to figure out what's most important for you to do — and what is feasible without breaking the bank.

Maybe you love dining out at the local hotspots, in which case you could try public transportation instead of paying for cabs. As Ally said, "the savings from taking the subway, city bus or walking can really add up."

Or, maybe you want to go all in on activities, in which case you could find ways to save on food. For instance, "you might assemble sandwiches for lunch while on vacation, or focus on shareable meals, like pizza, that can be split with the family," said SoFi.

Still, "while it's important to be financially responsible on vacation, it's also important not to let financial prudence (or frugality) interfere with the purpose of the trip: having a good time," said Kiplinger. Planning ahead is important, but then again "if that extra glass of wine at dinner costs a little more than you expected, it's probably OK to have it anyway; you can always reduce spending elsewhere if necessary."

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.