It’s happened to most of us. You’re sitting around in the middle of your vacation, at the base of a ski slope or on some tropical island, and you think “Man, I wish I had my own place here so I could come back whenever I wanted.”
Fortunately, wishes do come true sometimes. Here’s how you can make your vacation home fantasy a vacation home reality.
Set a goal for the house you want
Before you can start saving, it’s important to set a goal for yourself. That means figuring out where you want your vacation home to be, what size house you’re looking for, and what that’s going to cost you.
Are you looking for a sun-kissed Malibu beach house or a snowy slice of Halton real estate? Do you need a place big enough to fit every branch of your family tree, or a smaller intimate setting perfect for you and a special someone? Once you know what you’re looking for, you can figure out how much money you need. And once you find that out, it might just change what you’re looking for.
Open up a savings account
The simplest and surest way to build your nest egg is to open a savings account with your bank. It might not be the fastest solution, but it’s one of the most reliable. A savings account not only allows you to store (and add to) a certain amount of money intended for future use, it also has two other advantages.
First, keeping your savings in a separate account discourages you from being tempted to dip into it early. By not keeping all your funds together in the same account, it helps you to avoid intentionally or accidentally eating into your savings. Second, savings accounts accrue interest over time. This means that, just by virtue of you saving money in the first place, you’re actually making a small amount of money every single day, basically for free.
Cut back on extra expenses
How soon do you want to be in control of that vacation home of your dreams? The answer to that question plays a big role in answering another question: How much should you be cutting out of your expenses to stay under budget?
It might not seem to amount to much at first, switching to a smaller size coffee from Dunkin Donuts every morning or staying home to watch TV instead of going out to the multiplex. But, just like with the interest from your savings account, even a small amount adds up over time. A couple bucks here and there soon becomes a whole lot of bucks. An extra-large iced cappuccino with hazelnut swirl is temporary, but a vacation house is forever.
Consider renting instead of buying
That thing about a vacation house being forever? That doesn’t have to be true, necessarily. After all, forever is a long time. Owning a vacation home might seem like a tantalizing prospect, but if the price is just too steep for you, there are other options.
Let’s face it, most of us don’t actually need a vacation home. Most of us don’t even vacation that much, at least not as much as we’d like to. While a vacation home can go a way towards making that easier, for some people, it’s just not worth the cost. Renting a vacation home short-term can provide the same amenities for a lot less cost, and you won’t have to worry about house maintenance or property taxes. Only you know what’s right for you, but it’s definitely something to consider.
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