If you took a poll and asked people about their New Year’s resolutions, I’d be willing to bet that a significant portion of them would have “travel more” on the list. Whether you prefer international explorations, beach vacations, or an old-fashioned road trip, you may be itching to get out of your hometown in 2024.
But all that travel doesn’t come cheap. According to Forbes, the average cost of a three-day domestic trip for a solo traveler in 2023 was just under $1,400. That’s a lot of cash to spend for a long weekend getaway.
If you’re hoping to do more traveling in 2024, start taking steps now to save up for the costs you’ll incur. That way, you won’t have to take on credit card debt to pay for your trips, which will only make them cost more over time and hinder your ability to take other trips in the future.
Open a high-yield savings account for your travel fund
If you don’t already have a high-yield savings account, consider opening one ASAP. Current interest rates on savings accounts are topping 4%, which means that any extra cash you have lying around can earn you a decent amount of money at virtually no risk, since savings accounts are FDIC-insured up to $250,000.
By setting money aside now in one of these accounts, you can build up a travel fund well before your next trip that you can tap while traveling. And that fund will grow the longer you let the money sit thanks to compound interest, so you’ll get even more out of it than you put in.
Set a vacation budget and automate savings transfers to reach it
Not everyone enjoys the planning aspects of vacations; maybe you have a more go-with-the-flow vibe. But if you can do a little prep work ahead of time, your checking account will be better off in the long run.
When you’re picking a destination, do a little research on average flight prices, accommodation costs, and food expenses you might incur. If you can work up a ballpark cost estimate for your vacation, you’ll be able to set a vacation budget and more easily save up the money you’ll need by the time you board the plane.
Once you have an idea of how much your trip will cost, you can automate small transfers to your savings account with each paycheck to make the process of saving even more seamless.
Use a travel rewards card to bank points/miles
Other than maybe winning a free trip on a game show, nothing saves you money on a vacation like a travel rewards credit card. These cards can earn you miles or cash back on your purchases, which you can use to offset the price of your vacation when booking tickets or hotel stays.
Many of the best travel cards come with annual fees, but if you travel regularly, you can more than make up for that fee with the savings you collect. Let’s say you have a card with a $95 annual fee, but in return, you get:
Right out of the gate, you’ve saved $340 by spending that $95 — and that doesn’t even count the savings from points earned on your regular spending.
Research affordable alternatives to popular destinations
Some of the most popular vacation destinations also happen to be some of the most expensive ones. So why not get off the beaten path, avoid crowds, and save money all at once?
If you’re looking to travel internationally next summer, consider visiting smaller towns that get fewer tourists but still give you the full cultural experience you’re looking for. Or if your plan is to lounge on the sand, research beach towns along the coastal U.S. or inland lakes that give you all the summer vibes without the pricey plane ticket to Hawaii or the Caribbean.
Give your travel fund a chance to grow
I love to travel, whether to visit family or explore a new place, and I like to have at least one flight booked on my calendar at any time so I have a trip to look forward to. If your goal is to travel more in 2024, start making moves now so you can make that happen.
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