Need a vacation? Ideas to help you
take flight
Uncertain economy. Layoffs. Volatile markets. Do
you need a vacation to get away from the bad news? You may feel
like you need a break from it all but are worried about spending
the money this year. Vacationing and taking time to unwind can help
alleviate stress and increase your productivity at work. TD
Waterhouse offers these four money-saving tips to help you plan for
a guilt-free vacation this year.
- Decide what will make you happy. Are you only
content on a luxury Caribbean cruise or will more modest travel
plans work for you? Maybe this year you could rent an apartment
near the beach and mix your own margaritas instead of heading to
the all-inclusive resort. Think about the type of vacation that
will make you happy and then determine how much money you will
require from accommodations, to transportation, to food. Create a
spreadsheet to outline costs.
- Create a “vacation fund” with a
Tax-Free Savings Account (TFSA). A TFSA is a new flexible
investment account that allows you to earn investment income
without paying taxes and gives you access to your money whenever
you want it. You can contribute up to $5,000 a year and it is a
great way to save for a vacation. In addition, any withdrawals are
added to the following year’s contribution room allowing
you to save for future vacations. Websites such as http://www.tdwaterhouse.ca/tfsa can provide you
with the information you need to get started.
- Prepay your vacation. Start making weekly or
monthly contributions to your “vacation fund”
so that you can return from your trip without a huge credit card
bill. It can be as easy as bringing your lunch to work each day,
instead of buying it, and putting those savings into your
“vacation fund” each week, advises TD
Waterhouse. Small contributions towards your vacation throughout
the year can easily add up to big savings in just a few
months.
- Make a budget and stick to it. Once
you’ve determined your final budget, try not to go over
your limit. Bring your budget spreadsheet on your vacation and
inform your travelling companions of the budget parameters to make
it easier to stick to your plan.
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