Here's the second in our series of top five financial resolutions for 2001. Our first article showed you how to Cut Your Debts Now.
Resolution 2: Save for a Vacation
By making a few minor tweaks to your lifestyle, you can spend this year's vacation in the Caribbean rather than the backyard kiddie pool. Here are some tips courtesy of Cindy McIntyre, founder and editor of the Frugality Network and author of the upcoming "Declare Your Financial Independence" (Adams Media Corp., $9.95).
See where the money goes. You need to know how much you're earning and how much you're spending before you can work up a savings plan. So figure out what your budget looks like.
Gather information about the trip you want to take. Don't just rely on travel agents; plenty of great deals can be found on the Internet. The Frugality Network offers a travel section packed with tips and links to discount travel Web sites. You'll find more Hot Deals at the ThirdAge Travel channel.
Don't forget about expenses like food and souvenirs. You want to be able to take this trip without coming back with a massive credit card headache. Check out a guidebook from the library or consult Net sources to create a rough target of the trip's total cost.
Set up a separate vacation savings account to achieve that target. How to fill it? Look at your expenses each month, and figure out what you can eliminate without feeling deprived.
If you spend $5 a day on gourmet coffee, for instance, consider bringing a Thermos from home to satisfy the caffeine craving inexpensively. Depriving yourself may be hard to maintain indefinitely, but these tweaks should be easy to swallow.
"The goal is to start spending money consciously, not as a reflex," says McIntyre. "You'll find you have a lot of options to cut expenses." Divert any money you save this way into the vacation account, and watching it grow will provide a motivational boost to find additional savings.
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Sleep in peace, eat breakfast in style. Find a best-buy B&B.
