Friday, May 23, 2014

You have a few summer vacation days saved, but no money to pay for a vacation. You’re not alone, say personal finance experts. But if you start now, and stick to a strict regimen, there are at least five strategies you can use to save enough money in time to enjoy a few days away before summer turns into fall:

Curb daily expenses – At least for the short term, it’s essential to plan meals ahead, shop strategically, and cut out the little extras. Check supermarket specials. Use coupons. Eat in, pack lunches, and skip the fancy morning coffee. If you stick to it, and buy nothing you do not need, you should find a few bucks left over when the month’s expenses are paid. It may not be fun, but you’ll be glad you did it when you’re dozing in a hammock at a resort.

Sell your stuff – If you have stuff lying around unused, this is the time to turn it into cash. Have a garage sale or advertise it for sale on sites like e-Bay or Craigslist.

Redeem credit card rewards and points – This is the time to cash in miles, redeem any points that are good for hotels, restaurants, car rentals or gas, and collect any cash-back rewards that can go directly into your bank account. Check your credit card rewards balances carefully. You may be surprised at just how much those points and rewards can be worth.

Empty your pockets – You may also be surprised to see how quickly small change can add up. Empty your pocket change every night and don’t turn it into folding money until it’s time to hit the road.

Automate your savings – At the end of each day, add up what you’ve spent. Whether it’s $50 at the grocery store, $20 for gas, or a few bucks at the dry cleaners, take five percent of every dollar you’ve spent and add it to your bank account. It will make you more aware of what you’re spending and may stop you from making a questionable spend when you know you must “pay for it” in the end. There are also checking accounts available that help you “round up” every check you write to the next dollar and save it to another account.

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