Financial Planning for Your Vacation

June’s arrival is sure to conjure happy thoughts of vacation. But your happy thoughts also might be accompanied by concerns about what a vacation will cost. Wherever you go, hotels, restaurant meals, and recreational activities can add up quickly. And nothing makes returning from vacation more of a let down than an empty bank account or large credit card bills that take months from which to recover.

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The good news is that Popular Community Bank can help you plan for your vacation so you’ll have the funds you need to enjoy your time away without worry, and reflect on your vacation memories without regret.

Popular Community Bank gives you easy access to all your accounts
so you can watch your vacation funds grow and meet your vacation goals.

10 Tips for successful vacation planning include 

  1. Create a budget well in advance of your vacation that includes
  • Airfare/transportation (eg, car rental and rental car insurance, taxis, gas, tolls)
  • Cash for entrance and exit fees for international travel
  • Emergency money
  • Exchange rates for international travel
  • Health insurance costs
  • Hotel fares
  • Internet access fees
  • Pet care costs, including kennel fees or hotel pet fees
  • Phone charges, especially for international travel
  • Recreational activity costs
  • Tips and gratuities
  • Travel insurance costs

2. Start saving immediately after you have an estimate of what your vacation will cost, and add vacation savings to your weekly budget. The longer you save, the more money you’ll have to travel where you’d like to go, stay in hotels you prefer, eat at favorite restaurants, and engage in activities that interest you. As little as $200 a month adds up to $1200 in 6 months and $2400 in a year. And $200 a month breaks down to only ~$7 a day. Popular Community Bank financial counselors can guide you to products that can make the most of your vacation savings.

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  1. Prioritize your expenses by listing what matters most to you while on vacation, and then allocate money toward your goals. If you enjoy spa treatments while you’re away, call ahead for the rates and include the cost of tipping. If staying in a luxury hotel is your priority, eat at less-expensive restaurants.
  1. Time your vacation for economy, as traveling off season means getting less-expensive rates on hotels, airfare, and car rentals compared with peak season. If you have children in school and you cannot avoid peak vacation times, ask a travel agent about pre-booked seats on flights, special offers, group rates, rebates, and coupons to help you save.
  1. Contact Popular Community Bank and your credit card company to let us know when and where you’ll be traveling.
  1. Use a single credit card to keep all vacation expenses on one tab and pay the amount in full when you return. If you’re traveling abroad, get a credit card with no international transaction fees. 
  1. Add a cushion of $500 for unexpected expenses.
  2. Consider keeping your vacation savings in an easy-access fund that keeps the principle safe and provides a reasonable return on your investment.
  1. Consider using some or your entire tax return or work bonus to fund your vacation.

Let Popular Community Bank help you plan ahead and secure your finances
so that you get the most out of your vacation and return home with no worries or regrets.

Search our branch locator for a Popular Community Bank near you.

Our financial consultants are waiting to speak with you now.

 

The information mentioned in this article is for informational purposes only, is intended to provide general guidance and does not constitute legal or tax advice. Each person’s situation is unique and may materially differ from the information provided herein.  You should seek the advice of a financial professional, tax consultant and/or legal counsel to address your specific needs before any financial or other commitments regarding the issues related to your situation are made.  Banco Popular North America does not make any representations or warranties as to the content contained herein and disclaims any and all liability resulting from any use of or reliance on such content.

 

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