Top Tips for Creating a Realistic Savings Plan for Your Travel Goals

Do you have a travel destination you've been dying to visit? Many are dreaming of exploring famous places worldwide, from bustling Tokyo to the Caribbean's gorgeous beaches. What often holds them back is the expense. Costs pile up quickly—flights, food, and accommodations are just the start. Add souvenirs or once-in-a-lifetime activities, and the price tag grows even higher.

The good news is that travel doesn't have to be a distant dream. Anyone can save enough money to make their travel dreams come true without breaking the bank. All it takes is time, discipline, and the right savings plan.

If you're determined to visit your dream destination, here are some tips to get your savings plan off the ground.

1. Open a Separate Savings Account for Your Goal

Keeping travel savings in the same account as your regular savings can make it hard to track progress. How will you differentiate between money saved for your trip and funds for emergencies or other goals? That's why the first step in creating a travel savings plan is to open a separate bank account.

This dedicated account allows you to easily track your progress and ensures you won't accidentally spend money already allocated for your travel plans. Plus, a high-yield savings account can help you reach your goals faster by earning interest on your money.

You can also opt to open an EastWest time deposit account to let your money earn interest while you await your travel date. This way, you can reach your savings goals faster and even have a little extra for your trip!

2. Research Your Travel Costs

First, calculate the total amount of money you'll need for your trip. Your biggest expense will likely be transportation, so start by checking flight prices to your dream destination. While waiting for sales or promos is wise, it's best to set your goal based on the flight's full price for some wiggle room. Next, research on the best accommodation options, as this will likely be another major expense. Check hotel room prices directly from their websites or vacation rental platforms for the best deals.

With your two biggest expenses covered, it's time to budget for food, souvenirs, activities, and attractions. Always include contingencies in your travel fund—you never know when you'll need it!

3. Set a Deadline

Setting a deadline helps maintain discipline and keeps you on track toward your travel goal. For example, giving yourself one year to save for your trip provides the motivation to make consistent deposits into your travel savings account. Before you know it, you'll have reached your goal and have saved enough to fully enjoy your trip.

4. Decide How Often You Want to Save

Consistency is key when saving for a vacation. Part of maintaining consistency is adhering to a comfortable deposit schedule. For simplicity, align your deposit schedule with your pay days. If you get paid weekly, deposit money into your travel savings account weekly. Alternatively, you could deposit monthly, regardless of how often you're paid, allowing time to budget for other goals. Regardless, once you've decided on a schedule, stick with it to consistently move toward your goal.

Many banks allow easy fund transfers to other accounts. EastWest’s EasyWay mobile app offers a convenient and quick way to transfer funds from your main bank account to your travel savings account, making it easier to keep up with your savings goal.

5. Set Up Automated Deposits

Setting up automatic deposits is an easy way to ensure you're working toward your travel goals, even if you forget to do so yourself. You can set a minimum deposit amount at a frequency you're comfortable with—weekly, fortnightly, or monthly. You can then let the automation work, adjusting the amount and frequency as necessary, or manually deposit more funds if you have extra cash.

Saving up for travel can seem intimidating at first, but all you really need is a solid, realistic plan. Follow these tips, and soon, you'll have the funds to visit your dream destination!