Saving up for something is one of the hardest things to do; it’s almost as hard as sticking to a diet. The main problem is that there are always too many attractive things to buy. Especially, when it comes to dream vacations, saving up can get overwhelming because of the large amount that needs to be accumulated.
1. Determine your goal
One of the basic steps people forget when saving up for something is to efficiently set up their goal. They usually settle for declaring an amount of money, and they start to work their way up to that amount. However, in order to effectively set up a goal and have a chance at achieving it, you need to make sure your goal is: reasonable, time-bound, and possible to track.
When you’re saving up, you need to keep in mind that it is a long, hard process. You may get bored, or lose motivation. To make it easier for yourself, you need to make sure that you are working towards saving an amount of money that is possible to accumulate. If you start off by setting a million dollars as your goal, you’re probably setting yourself up for failure. Instead, it is better if you break down your main goal to smaller goals; checkpoints, that way you would get a boost of motivation every time you pass a milestone.
Speaking of motivation, most of us don’t really start working until we are faced with an unmovable deadline; only then do we start putting in the effort. This is why setting up a concrete date for yourself to have the money by being such a good idea. The date could be determined by a vacation offer, or a special anniversary; it’s up to you.
Another goal characteristic related to motivation is the ability to track progress. When saving up, it is quite important that you know how much money you have, and how much money is left. Not only does it help in managing your effort, but, when you see how far you’ve come, it sparks a burst of motivation which we all need at some point or another.
2. It’s the little things that matter
Sure, you may think that saving as little as an extra two dollars per day won’t matter. But let’s say you’re saving up for something as important as your dream Bahamas cruise, then it’s crucial for you to know that every penny counts. On the other hand, when you save that little an amount every day for a while, you could end up with quite a significant sum. Imagine how much your total would be worth more than 2 dollars per day.
Having said that, there are no staples when it comes to the little expenses; they are different for everyone. For some people, it is eating out rather than cooking at home, for some it is wine, and for others it is a premium package of sorts; the list of little, often unnecessary, expenses are literally endless.
Of course, you don’t have to cut down on every single luxury or unnecessary expense. It’s all about compromising; you don’t have to eat out every day, or drink wine with your dinner, or go to the movies that often. It’s also about being smart with your expenses.
3. Look for additional income
The more budget cuts you make, the faster you reach your desired amount; yet, it’s never enough. It is essential that you try to increase your income flow by any means possible which is not a hard task; exhausting, but not hard.
There are a lot of jobs that you can do, in addition to your own job. Not to mention, you can always work overtime at your own job. If you don’t mind driving, you can drive for companies like, Uber. If you have an extra room in your house and won’t mind the company, you can look into renting it out for travelers. You can also sell baked goods, or have a garage sale. The possibilities feel endless; free to get creative as possible.
As you may have noticed, the first point was mostly focused around motivation. The downfall of most people when it comes to saving up for a cruise or a vacation, in general, is the loss of motivation. This is why what matters the most is that you keep your eyes focused on your goal. Whenever you feel down, or that you’re sick of restricting your spending, just go over your itinerary; it’s guaranteed to give you the boost you need.