10 budget-friendly ways to achieve the vacation of your dreams

Vacations offer the opportunity to experience new cultures, improve your mental health and bond with the people you love. But sometimes, travel costs can make vacations feel out of reach. The good news: A meaningful vacation doesn’t require a huge budget. With the right approach, you can plan trips that create lasting memories without derailing your financial goals.

“Vacations aren’t a luxury for ‘someday.’ They are part of a well-lived life,” says Melissa Myers, a Thrivent Money Canvas^® coach. “We work very hard for our money, so being able to spend it on vacationing is important, because that’s you planning for joy in the moment, but responsibly.

“It changes the relationship with money in a really powerful way when you think of it as funding these experiences, rather than sacrificing and saving just for the sake of saving,” she adds.

Whether you’re planning an overseas adventure or a cross-country road trip, read on to learn 10 tips for making any vacation fit your budget.

While being mindful of costs is important when planning a vacation, you shouldn’t cut corners on every aspect of your trip.

“A vacation isn’t about spending as little as possible,” Myers says. “It should be about what matters to you, so that your money can support the experience that you want to have.” She suggests outlining what your ideal experience looks like. Is it restful? Adventurous? Celebratory? “Then, work backward from the must-haves. If you can’t negotiate the location or the timing, for example, then those are some things that are going to anchor your budget.”

As you’re building your budget, don’t forget about the less-obvious travel-related costs, such as house-sitting, airport parking, checked luggage and souvenirs. Once you have a rough idea of how much you want to spend, build in a buffer of 10% to 15% to cover other expenses, whether that’s an unexpected illness or a spontaneous adventure.

Rather than planning to pay for your vacation from your normal savings account, open a dedicated account for travel expenses. “When you put an intention on your money, you tend to not spend it on something else,” explains Myers.

Then, create a plan to fund that account regularly. Start by setting up automatic transfers from each paycheck and contributing financial windfalls like tax returns or bonuses. You also could find “money leaks” from unnecessary expenses, such as forgotten subscription services, and redirect those funds to your adventure.

“Consistency will matter more than intensity,” Myers says. “You want to be able to build your vacation off of small, steady progress, so that you’re not feeling like you’re depriving yourself at crunch time just to get the funds together.”

Once you are saving consistently, think about where that money should live. Standard savings accounts are an option, but if you want to make your money go further, you should consider financial products like high-yield savings accounts, mutual funds and money market accounts. Talk to your financial advisor about which product makes the most sense based on your trip timeline.

“If you have time ... because it’s a way-off dream, or it’s a five-year anniversary or 10-year anniversary, maybe you have some of that money growing for you [in the market],” says Thrivent Financial Advisor Molly Bruce, from York, Pennsylvania. “But if it’s going to be sooner than later, have it in something safer. Maybe use a high-yield savings account or something like that to get a little bit more growth in your funds.”

You shouldn’t go into credit card debt for a vacation, but if you have a history of paying off your cards in full every month, consider applying for a travel-specific card. These often offer welcome bonuses and rewards on everyday purchases that can add up to future flights or hotel stays.

If you’re a family with school-age kids, your vacation dates might be limited to school breaks. But if you have flexibility, target those less-popular windows just before or after peak times, when prices drop significantly.

When you book a flight can drastically affect the ticket price. According to a recent report from Expedia and the Airlines Reporting Corporation,* Sundays are the cheapest day to book flights, and the cheapest days to travel are Saturdays for domestic flights and Thursdays for international flights.

The research shows that rates are lowest one to three months in advance for domestic flights and 18 to29 days before international flights, but your best bet for finding a great deal is to set up price alerts using websites like Google Flights or Hopper, which will notify you when ticket costs drop for your destination and dates.

Evaluating whether it’s more cost-effective to rent a hotel room or a home for your trip comes down to the size of your party and the length of your stay. Hotels and all-inclusive resorts are often more affordable for shorter stays and smaller groups. Plus, perks like complimentary breakfasts, airport shuttles and loyalty programs that earn free rooms and upgrades can significantly reduce overall vacation costs.

If you’re planning fora longer stay with a larger group, however, a short-term rental might make more economic sense, especially if you’re hoping to save money by splitting the cost of accommodation and cooking your own meals.

When you’re on vacation, it’s easy to feel pressured to pack your itinerary with extravagant excursions and tours. That can feel exhausting, and it’s also expensive. Instead, choose one or two splurge experiences, then mix in free or inexpensive activities, whether it’s going to the beach, mini golfing or having a game night at your hotel.

“Keeping things simple can be just as impactful as planning out every minute,” says Myers. “I think sometimes people overcommit themselves on vacation, and then they need a vacation from their vacation.”

You don’t have to travel across the globe to have a memorable vacation.

“Instead of traveling somewhere grand, maybe it could be a week off and you do day trips and explore your hometown,” says Bruce.

Without airfare and hotel costs eating up your budget, you’ll have more to spend on the experiences that make a staycation memorable. You could eat at restaurants you’ve never been to before, take a class at a nearby art or cooking school, get tickets for a new museum exhibit, lounge by the community pool or volunteer with a local nonprofit. The key to a successful staycation is to get out of your normal routine and pretend to be a tourist in your own hometown.

If the idea of tackling vacation planning on your own sounds daunting, hire a travel agent. Their services are typically free, and they often have access to exclusive deals and perks from their travel partners.

Your financial advisor can help you choose the right financial products and strategies to meet your vacation fund goals. They’ll also keep you accountable and help you build a budget that allows you to truly enjoy your trip without worrying about money or coming home to credit card debt.

“Let’s figure out a way to adjust the plan so that you can live your life,” says Bruce. “It’s not all about saving for rainy days. It’s also about saving for the fun things to remember together.”

Taylor Hugo is a writer in Colorado.