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It’s almost spring, the time of year when many people start feeling the itch to get away — and have something to look forward to. Maybe you’re thinking of a trip to Mexico, a long weekend in Las Vegas or a sunny Caribbean cruise. Or you’re open to wherever there are good deals, as long as it helps you make up for the traveling you missed during the pandemic. While 84% of U.S. consumers are planning to take at least one overnight vacation this year — roughly the same percentage as last year — 56% of travelers plan to spend more money doing it, according to a December survey commissioned by market researcher Mintel. In fact, separate research from a unit of Fidelity National Financial found Americans are planning to nearly double their travel budget this year — to an average of over $10,000. Whatever your travel bandwidth may be, no one likes coming home to a debt hangover. The stress can make it harder to enjoy your trip and the bills can keep you from saving up for the next one. So here are two basic saving strategies to help you avoid a big credit card balance:1. Keep an ongoing line item in your budget, setting aside a pre-set amount each month so you always have some money available to snag those sweet last-minute deals. This is often referred to as a sinking fund, an unfortunately-named savings strategy that you can use for any infrequent but large expenses. (Don’t worry, you can still go on a sailing adventure if you choose this option.)
2. Set up a trip-specific saving plan, assuming you have a bit of runway to get started. First estimate your trip’s total cost, including lodging, transportation, food, and tours. Then divide the total trip cost by the number of months before your intended departure. That’s how much you should put into your savings each month, ideally by setting up automatic transfers.
Also worth noting: SoFi members can book travel right in the SoFi app and get 20% or more off select hotels right now. So what? Vacations can be pricey. One in three people ranked travel spending among their top-three financial goals for this year, according to Mintel. So treat it like one and plan ahead.Related Reading
• 20 Best Europe Destinations in June for 2025 (Price of Travel)
• Travel Inflation Report: February 2025 (NerdWallet)
• How to Make a Budget in 5 Steps (SoFi)
photo credit: iStock/Michal Krakowiak
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