How to Save $1,000 by July for a Summer Vacation

It might still be winter in many parts of the U.S., but let’s be honest — you’re already dreaming of your next big vacation this summer. If you don’t quite have the funds to book your summertime flight, there’s no better time to put together a vacation savings account than now.

By taking thoughtful steps toward building a vacation fund today, you can save $1,000 by the end of July. These five steps can help you reach #vacationgoals this summer.

1. Cut your most expensive streaming plan

Possible savings by July: $30-$96+

Aside from major financial responsibilities, like paying rent and debt, monthly subscription costs are an easy expense to address head-on that can yield big results. According to Deloitte's latest digital media trends report which surveyed 2,003 U.S. consumers, the average American subscribes to three streaming services.

With Hulu subscriptions ranging from $5.99 to $60.99 per month, and Netflix at $8.99 to $15.99, cutting just one of these services gives your savings goal a solid jumpstart. For example, let’s say you have Hulu’s basic $5.99 plan and a premium Netflix plan at $15.99.  If you cancel your Netflix account for six months, you’ll save $96. That’s one-tenth of your total goal!

2. Reduce food costs by 25%

Possible savings by July: hundreds

Whether you prefer to cook at home or enjoy breaking bread with friends and family, food costs can set you back hundreds of dollars a month. The Bureau of Labor Statistics’ latest Consumer Expenditure Survey found that the average U.S. household spent $7,923 on food in 2018. This includes food in the home and dining out.

If you break this expense down, that’s $660 spent per month on food. Slashing your food budget by 25% can save you $165 monthly. Over a six-month savings spring to summer, that’s $990 by July.

3. Downgrade your gym membership

Possible savings by July: $60-$300+

Maintaining your health is an important part of self-care. Although fitness memberships can help make the experience more convenient, a gym costs add up when you have a vacation goal in mind. Consider downgrading your gym membership to just the basic tier or freeze your membership until after you go on your trip.

A 2019 report by The Hustle found that the average cost of an annual gym membership, including initiation fees and annual fees was $639. Considering that there are many creative ways to get your cardio and weightlifting fix without a gym, hitting pause on your gym membership can give your vacation fund the lift it needs to reach the finish line.

4. Gamify your savings goal

Once you’ve targeted where you’ll find the reserves to fuel your vacation savings account, it’s time to think about your strategy. Although six months can go by in a snap, it’s just as easy to fall off the savings wagon.

Gamifying your vacation savings goal will help you set concrete savings milestones and give you a clear path on how much you need to save to hit your $1,000 goal. For example, with a 14-week runway (about six months), you can start with $53 of savings in week one and add $4 every week through week 10. During the last is the final stretch to hit one grand. 

Here’s a table of weekly amounts and how it quickly takes you to your vacation goal:

5. Automate your savings

If having to remember weekly savings goals feels more daunting than motivating, take advantage of online banking. The power of automation allows you to have the mechanics of your savings strategy running in the background so you can focus on other items on your mental to-do list.

You can automate your savings deposits for free through your bank or credit union. Setting a standard automatic deposit amount from your checking account to your vacation savings account is the easier way to do it. To save $1,000 by July you’ll need to save about $166 per month if you start this month. By the time summer’s here, you’ll have a healthy vacay fund to play with.

If you need help working in vacation expenses into your budget, reach out to a financial coach today.