7 Ways to Save for an Annual Splurge
If your annual case of wanderlust isn’t satisfied by hours spent scanning colorful travel blogs and binging adventure-filled television shows, reassess the situation. It might be time to take the plunge and book a ticket for a real-life experience. But when your current finances don’t quite match up with your globe-trotting dreams, it can be a real bummer.
Here are seven ways to save for an annual splurge.
1. Open a separate savings account.
It’s essential to designate a specific account as your splurge fund. Earmarking a separate account will help you stay disciplined and focused on your financial goal. Plus, keeping some funds somewhere besides your checking account reduces the desire to spend that money on something else.
2. Commit to a realistic timeline.
Setting a target savings date will help keep you motivated and on track. Give yourself a realistic time frame and set mini goals along the way. For example, if you’re saving for a trip to Aruba, set a timeline based on when you need to book the trip and then make and meet your deposit goals each month.
3. Earn extra income.
Working overtime or starting a side hustle and then banking the extra income is a great way to save for your splurge. Pick up a side hustle or sell items you don’t need. You could also do paid odd jobs for neighbors or family members. The extra money you earn can go directly into your splurge fund.
4. Spend less on essential items.
Before you purchase items like groceries or clothing, search for coupons or promotional codes that can be used at checkout. You might also be able to secure a discount by paying certain bills, like auto insurance premiums, in one lump sum payment instead of installments. Deposit the amount saved into your designated account.
5. Trim unnecessary spending.
Another way to save for a splurge is to cut back on your spending. Examine your habits to find ways to keep more cash in your wallet. For instance, you might pack your lunch instead of eating out or cancel unused fitness memberships and work out at home. Even small changes to spending can add up fast.
6. Pay for purchases using cash.
Use cash for everyday purchases instead of credit cards or debit cards. It’s one of the surest ways to avoid impulse buys that prevent you from reaching your savings goal. Once you’ve spent your cash, you won’t be able to buy unbudgeted items.
7. Plan “no spend” days.
Designate at least two no-spend days each week. Don’t spend any money on those days, even on small things like coffee or snacks. Deposit the saved money into your splurge fund.
While saving for an annual splurge takes discipline, having a realistic plan makes it less challenging. And with focused effort, it can be surprisingly easy to set aside money for your annual adventure. Open a savings account and make your first deposit today!