Vacation Money Wall

As mentioned in my last post I have started my debt-free journey. While that means I am on a budget, that doesn't mean that I am throwing travel out the window. Before I had no issue putting plane tickets, hotels and vacation packages on a credit card, then making payments every month. I have definitely learned that paying cash or with a debit card is the way to go. While reading Love Your Life Not Theirs I have learned about "sinking funds". This basically means that you save up money little by little, every week or every payday to save up for upcoming or reoccurring expenses. This gave me the idea of making a Vacation Money Wall.

Vacation Money Wall in my bedroom

My money wall this year are for the upcoming trips I have planned New Orleans for Mardi Gras, Oaxaca, and a New Years Trip to somewhere warm. My portion of the house on Airbnb and my plane ticket have already been paid for Mardi Gras, so now I just to save up spending money. I get paid weekly so I take out $60 a week and split it up accordingly. It is much easier to take out cash little by little every payday rather than having to come up with a large amount of money by the time of the trip. 

It very important to keep in mind to keep on top of this type of saving and to not take money from it when money gets tight. It is a nice motivation to put the envelopes somewhere you can see them everyday, it gives you a little more motivation to keep stuffing your envelopes. Imagine how liberating it is to come back home from your vacation and you do not have to worry how to pay off that credit card bill, you actually come back relaxed. 

I love this quote I found on Pinterest, it is a perfect example of why the Money Wall is such a great idea!

A good example to keep in mind while doing this new form or budgeting is that it gives you such a peace of mind when planning your travel. When you go on social media you might see all of these people traveling to these gorgeous places, but what we might not know is that they charged everything on their credit card, from the airline tickets to the new designer sunglasses. They maybe paying off that trip for years to come, while you already paid everything in cash and can start saving for your next trip!

What do you do to budget for an upcoming vacation?

Con Amor,

Adriana