3 Different Ways to Finance a Much-Needed Family Getaway

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Has your family been antsy lately? As 2021 is in full swing, there are many families who have been cooped up in their homes for most of 2020, making a getaway much needed this year. Oftentimes, if you don’t make family trips a priority, you and your family member’s lives can lead to burnout, increased stress, and even depression. Escaping the humdrum of everyday life can help relieve stress, increase family bonding and positivity, as well as give your children an experience they wouldn’t otherwise have. While every family’s budget is different, there are many ways to help finance a vacation. Everyone needs to blow off some steam now and again, and here’s how you can, too!

1. Use a Personal Loan

A quick and easy way to take your essential family vacation is by using a personal loan. While there are several types of personal loans, in general, their purpose is to give you the ability to utilize a lump sum of money for any kind of large purchase (i.e. vehicles, home renovations, trips, paying off debt, and more). The amount approved, interest rates, and pay-off payment plan are all determined based on your own financial situation so you are able to make the easiest transition for your family to be able to take the vacation you all need, while maintaining your normal lifestyle. 

As an example, say you are approved for a $2,000 loan and are given a 5% interest rate over the course of 2 years. If all payments are made on time, be prepared to pay back $100 in interest before you commit to the loan.

Before applying, sit down and decide on your destination, travel plans, and the dates you hope to go. Then you can more accurately decide on how much you’ll need  to apply for, and can roughly estimate how you’ll pay it back. You want to ensure you’ll be able to pay the loan off while living your normal life when you get back to reality. A personal loan is a great option to quickly take a vacation and pay it off later without hurting your credit or everyday lifestyle.

2. Start Saving with Auto Transfers

Another option for financing your family trip is through opening a savings account and setting up automatic transfers to save enough money. With most bank providers you can add a savings account, as well as change the name for more organized budgeting. For example, use something with a call to action like “2021 Family Vacation” or “Family Vacation to X in 2021.” You can either set up an automatic transfer with your bank or have a certain percentage of your paychecks deposited into your vacation account. This will hold you accountable by putting the action out of your control. Now, sit down and take a good look at your expenses and income and come to a realistic number that you can set aside each paycheck. Then, dive into planning a vacation that fits within the budget that you will need to accumulate. 

Say you need about $2,000 for the trip that you want to plan for your family. To go in 6 months, you need to set aside $400 each month. While this may seem like a lot, isn’t changing your lifestyle a little bit for the next few months worth it for some much-needed time off? 

If you have decided that this is the best option for the group, book the trip! Oftentimes, you don’t have to pay for things such as excursions and hotel rooms until the day of the activity or leaving your stay. This might differ for whatever your plans are, but at least you can plan ahead and have a sufficient amount of money set aside for when you leave or book the vacation.

3. Use Credit Card Points

Did you know that over 191 million Americans have a credit card? As long as you are only paying for things that you otherwise would with cash and are paying off the amount in full every month, there are many benefits to having a credit card. Like for emergencies, building credit, and getting something in return for your purchases. There are loads of credit cards available, and most of them offer some sort of benefit in return. Some offer a percentage off, cashback, points gained, or airline miles. Depending on what kind of card you have, it might be a good idea to take a look at the cashback, points, or miles you have accumulated. Whatever that may be, this could be the ticket to your much-needed vacation or just part of what you need to save.  

With the $2,000 figure still in mind, say you have $500 dollars saved up in cashback on your credit card, so you really only need to save $1,500. That’s a big saving in the scheme of things!

Now that you know how much you need to save, take the time to do it! Then, when the time comes to go on your trip, book everything right on your credit card, apply your cashback and then pay the difference. You have made a hefty saving, your family will be happier from the trip, and you earned more cashback for another trip down the road.

There are many reasons why your family might need a getaway, and the opportunities to make it possible are endless. Sit down and take a look at what option is the most realistic for your family and let everyone feel the benefits of escaping reality and make every family member a little happier in the long run.

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