How Our Goal Based Savings Account Keeps Us From Overspending On Vacation

Want to get more out of our goal based savings without the guesswork? Below we walk through the essentials in plain language, with practical steps you can use right away.

Key Takeaways

• For this trip we had close to $3000 saved in our account for all the expenses from flight and hotel to shuttles, meals and souvenirs.
• More importantly, so an pricey flight became even more pricey.
• Hotel Cost - $900: Another expense that ended up being more than planned since when we re-scheduled our trip the new dates had rates that were greater.
• Food, entertainment and souvenirs $600: We got out $300 in cash and spent an additional $300 on our Perkstreet Rewards Debit on eating out, tours, attractions and souvenirs.

How Our Goal Based Savings Really Works

We went about making plans for our trip, trying to find a affordable flight, decent cost on a hotel and shuttle and ferry tickets to actually reach the island.  We found that it wasn’t going to be one of our most affordable trips ever, in fact it was going to be quite pricey. Luckily we planned ahead and saved up for our vacation in a goal based savings account, which meant that our trip, while pricey, was still within our reach.

Thankfully we plan ahead for our vacations, and for other regular spending.  We have goal based savings accounts at ING Direct that allow us to save for expenses that we know are coming, but may not happen for another few months or years. For instance, we have one goal based savings account where we save up for our next car, instead of paying a car payment.  We save up for a few years and when the time comes to purchase a new car we pay cash.

Getting the Most From Our Goal Based Savings

Worth noting: we also have a goal based savings account  for our vacation expenses.  We put a little bit of money in that account each month, and when it comes time to go on vacation, we typically  have more than enough money in the account to pay for all the expenses. Tallying Up Our Expenses So we had the money for the vacation saved, now we just had to book our trip and keep it within that limit.

Here are the approximate expenses that we incurred: Flight Cost - $1460: This expense ended up being more pricey than we thought since we had to cancel the original date for our trip when we all got sick, and reschedule our flights.  Since of that we incurred a $260 change fee. Shuttles & Ferry Boat Cost  - $100: We had to get a shuttle to and from the airport, and a ferry out to our final destination on the island.  Unavoidable cost, but at least the ferry ride was fun.

Tips That Make a Difference

Remember that goal Based Savings Accounts Are Solid Planning Tools We’ve found that goal based savings accounts are a excellent tool for financial planning at our house.  Among the reasons: You can save up and pay cash for your vacation:  We tend to only go on vacation when we have enough saved in our vacation savings account. Not enough in the account?  We don’t go.

That method we don’t end up with a vacation debt hangover. It’s a solid tool to keep spending in check: Since we  have a certain amount in the account, that’s consistently going to be our limit on spending for a trip.

Common Mistakes to Avoid

As a rule, typically we spend much less than what is in the account. Even though our plans drastically changed this time and the costs went up, we were only slightly over budget since we had more than enough saved, and we kept our spending within those parameters.

Have you used goal based savings accounts as a planning and saving tool?  Tell us what goals you’re saving or have saved for! FNBO Direct Online Savings Account Review: High Yield Savings AccountOver the past year or so I've written quite a few reviews of online banks, talking about the histories and highlights of each respective financial… SharePin8Tweet.

Frequently Asked Questions

How can I save money on our goal based savings?

Compare prices across a few retailers, look for active coupon codes, and time bigger buys around sales events. Luckily we planned ahead and saved up for our vacation in a goal based savings account, which meant that our trip, while pricey, was still within our reach.

Is it worth shopping around for our goal based savings?

Usually yes. Thankfully we plan ahead for our vacations, and for other regular spending.  We have goal based savings accounts at ING Direct that allow us to save for expenses that we know are coming, but may not happen for another fe....

What should I check before buying?

Read the terms, confirm any code still works, and factor in shipping or returns. For instance, we have one goal based savings account where we save up for our next car, instead of paying a car payment.  We save up for a few years and when the time comes to purchase a new car we pay cash.

Smart Ways to Save More on Our Goal Based Savings

• Leave items in your cart for a day; some stores send a follow up discount.
• Pair cashback with a coupon so you save twice on the same order.
• Stack a coupon code with an existing sale whenever the store allows it.
• Sign up for the retailer newsletter to catch first time and seasonal discounts.
• Compare the final price including shipping, not just the headline number.

Final Thoughts

Before you check out, line up our goal based savings against current promotions and any codes you can stack. Small habits like these add up to real savings over a year.

Originally published at biblemoneymatters.com.