Summer is far from now, but it doesn’t mean that we can’t start planning.
There are several reasons why we ought to start organizing for trips week or even months ahead of your summer vacation date, but consider the following five financial reasons:
First, consider new tax laws. Contrary to what many people believe, taxes will place more of a burden on working-class and middle-class people. If you are looking to take a vacation, now is the time to get your finances together, because you will be paying taxes later on in the year.
Second, you never know what may happen later on. If you are the victim of an emergency, you may have to pay money to take care of it. With health insurance costs rising, you never know how much you will have to pay out-of-pocket. It is better to set aside the money for your vacation now rather than wait and possibly have to give it up because of a health issue.
Third, you will get the best prices for your summer getaway if you purchase everything ahead of time. Your accommodations, plane tickets, and extra essentials will cost less if you pay for them now. Why wait until the summer hits and pay full price for them – let all of the latecomers do that while you enjoy the rest of your expendable income in cash.
Fourth, if you put away money for your summer getaway now, you can gain interest on that money while you wait for the summer to come. You may be able to turn that $5000 savings account into $5500 or $6000 by the time the summer rolls around, but only if you put it aside early and invested properly. The sooner that you save money, the sooner that you can talk to a financial advisor who will let you know exactly how you can use your money to build it for your summer vacation.
Finally, putting aside money right now helps to organize your schedule financially for the rest of the year. There is no reason to confuse your schedule later on – set aside the money in your budget now so that you can create the rest of your budget for the summer as well. If you are genuinely financially savvy, then you will be able to develop a budget for the winter season as well. You may even be able to take a vacation in those winter months! Do not put anything outside of your potential until you see how your finances look.