Invest, Don’t Save, for Your Hawaiian Trip
Need smarter ways to fund your next vacation to the Aloha state? We’ve got you covered. Why save pennies until you have enough to go on a trip? Invest your hard-earned money and take a different approach. Rather than scrape up $1,000 to take the family to Oahu, heed these tips to invest wisely and reap the rewards.
By the Numbers
Rather than work your fingers to the bone to save up $1,000 for a small trip, you could invest $20,000 at a conservative rate of five percent and take a “free” trip every year. Not only do you get to keep that initial $20,000, you add $1,000 for your vacation.
$20,000. $20K x .05 = $1000
This is a smart investment you can feel good about, especially since you didn’t have to do any extra work to achieve that goal. You just have to know how simple investment strategies work and let your money do all the work rather than the other way around.
<h2Establish a Vacation Account
You probably already have a regular savings account where you keep money for a rainy day, emergency fund or unexpected household repairs. Keep that savings separate from your vacation fund so you don’t spend it. This also helps you keep up with clear-set goals for the future. Better to go with a strategic saving approach whereby you create a separate account at the bank (or online) that’s only reserved for annual trip investment. Enlist direct deposit so a set amount goes into your account every paycheck. You won’t even miss it after awhile!
<h2Make a Plan
A big vacation like one to Hawaii needs a detailed plan. Say you want to visit Oahu. Sit down and make a plan on paper of how you’re going to spend your time and how you want to spend your money. Focus on a target amount and make sure to include all costs such as:
• Car rental
• Tours (Pearl Harbor, etc.)
• Meal plans
Divide the total projected cost by the number of weeks until you’re due to set out. Now you know how much you have to sock away in order to enjoy the best trip possible.
Don’t Squander Your Tax Return
If you’re planning a spring trip to Hawaii, you may be counting on using your tax return as the basis of funds for your vacation. However, this isn’t money that has just fallen into your lap – it was your money to begin with. Approach it as an investment and immediately put it into your account of choice. It’s not really the best idea to get such a big lump sum at the end of the year. Rather than loan your hard-earned money to the government interest free, set it aside throughout the year to earn interest on it and enjoy a bigger, better trip, advises Money Crashers.
Be sure to earmark some of your funds for a well-deserved tour with Hoku Hawaii Tours, which will add to your enjoyment of Oahu.
Check out our Hawaii Tours video!