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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.

  1. 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.
  2. 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 can provide you with the information you need to get started.
  3. 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.
  4. 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.