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As a physician, you work hard to provide quality healthcare to your patients. With that said, it’s also essential for your health to take time off to recharge and rejuvenate!
A vacation can be a perfect way to refresh, but it can get costly fast, which is why you should plan and save. Check out these Physician Bank-approved tips to help you save money for your much-needed vacation, which can also be applied to other short-term savings goals:
Smart Money Moves Physicians Should Make for the Vacation They Deserve
1. Set a budget
The first step to saving money for a vacation is setting a budget. Decide on the overall cost you’re willing to spend and turn that into your savings goal.
You can calculate your overall cost by listing all anticipated costs and assigning them based on research and average costs. For example, you can find typical flight prices by looking at Google Flights and entering dates during the time of year you’re traveling. You can also get hotel quotes online to get an idea of nightly accommodation costs.
When considering all expenses, including flights and travel, accommodations, food, and activities, and factor in an emergency fund for unforeseen expenses.
You can then take into consideration the amount you’re willing to allocate to your vacation per month or per paycheck. Look at your disposable income and think about what you can reasonably add up each month. Make a loose savings plan based on this and add up what it will amount to by the time of your vacation.
With all costs considered and your vacation savings plan, arrive at an overall cost you feel comfortable with that won’t exceed what you deem reasonable.
Now that you have a budget, dig deeper into planning your specific vacation details.
2. Plan ahead
Planning is crucial when saving for a vacation. Start by researching locations, flights, and the time of year for travel, so you can get a better idea of when it’s more cost-effective to travel. Consider traveling during the off-season when prices are lower, and tourist crowds are thinner.
Once you find some destinations you like, do research on each destination, is it all-inclusive or do we need a dining budget? Are there additional flights or transportation accommodations you’ll need beyond the main flight(s)?
Check out online reviews and travel blogs for tips on saving based on your destination. Also, make sure to look for deals and discounts, and call your hotel to ask if they have any offers.
Make sure to consider your budget and, realistically, how many months it will take to save up for your vacation. Start saving right away, so you can be fully financially prepared for a stress-free vacation.
3. Create a plan for saving money and automate your savings where you can
You have your vacation budget; now you’ll want to create a plan to save money.
Consider automating your savings with a goal-setting tool, like the one in our Physician Bank digital banking app. You can add a goal, “Save for Vacation,” and then allocate a monthly payment to your designated Physician Bank deposit account! This way, you’ll be able to budget for a specific monthly payment toward your goal.
Another way to automate your savings is to enroll in our Save Up program if you’re a Physician Bank customer. Save Up rounds up every checking transaction to the nearest dollar and automatically deposits that amount into your Physician Bank savings account. You can enroll in our digital banking app, but you must have a Physician eCentive® checking account!
If you need to save up rapidly, review your expenses and identify areas where you could cut back. Consider reducing your dining out, shopping, or entertainment expenses. You can also save on daily expenses by packing your lunch instead of eating out and using coupons and discounts when shopping.
You can also use a budgeting tool to help you limit your spending and meet your savings goal. Our budgeting tool in our digital banking app lets you set budgets by category, with monthly spend limits that alert you when you’ve reached your limit.
4. Rent out your home
If you own a home, consider renting it out while you’re on vacation.
You can list your home on vacation rental websites like Airbnb or VRBO and earn extra money to put toward any post-vacation expenses if you used a credit card for certain expenses or want a little boost to replenish your bank account. Just be sure to do your research, follow all local laws and regulations, and check with your HOA or neighborhood on regulations regarding vacation rentals.
5. Use a travel agent
Consider using a travel agent to plan your vacation. A travel agent can help you find the best deals and discounts on hotels, flights, and extras. They can also find travel packages that include flights and hotels, or all-inclusive packages that may save you even more money than booking everything separately.
They can also help you plan your itinerary to get the most out of your vacation budget, without going over!
6. Consider less popular destinations
Many well-known vacation spots charge higher prices than lesser-known ones. You can find spots close to popular vacation destinations that are just a little outside the major tourist area and end up saving a lot of money.
Also consider countries and destinations where the US dollar is strong and goes a long way, such as Peru or Mexico.
Saving money for a vacation as a physician requires planning, budgeting, and prioritizing your expenses. If you don’t have many vacation options as a busy physician, it’s helpful to have a vacation savings plan and start saving so you have some wiggle room if you can take a last-minute vacation!
Remember to take time off to recharge and enjoy your well-deserved time off!
Let us help you achieve your financial goals! Connect with a private banker to learn more about Physician Bank and how we can help you with your long- and short-term savings goals!
Are you a physician in need of a loan? Physician Bank was made for you!
Start a conversation with us today.
Matt Velline
Matt Velline is a highly experienced lending expert with over 20 years’ experience in the mortgage and real estate industry. He has been with Heritage Bank and its subsidiary, Physician Bank, for over two years. In addition to his work in lending, Matt is also a professional musician who tours internationally. He prioritizes both his family life and the pursuit of personal prosperity.
What sets Matt apart from other loan officers is his real estate experience. As a licensed real estate agent, he takes a comprehensive approach to home-buying. This allows him to better relate to and advise his customers throughout their purchasing journey.
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