One of the hardest parts about money management, for me, is finding space in what I consider to be an already stretched and stressed situation. We, like many Canadian families, are working hard to get out of debt. It’s an ever-constant battle to go from paycheque to paycheque, then try to get ahead on top of that when you’ve got a small child in daycare, and the added pressure of working hard to keep one parent at home. There simply isn’t enough money. And then, because it’s so practical, you decide that you need a vacation. The easiest thing would be to jack your credit back up, just say flapjack it, and go… Or not. Coming to terms with having to pay more later would stress me out and end up voiding the whole point of a vacation.
Not this summer, but next, we’ve been planning a trip to Disney World. We all know the pitfalls, the insanity, the cliches, but my sister-in-law really wants to go, and our two families travel exceptionally well together. Plus, my son adores his cousins, and he’ll have way more fun with them there, then if we went on our own, just the three of us. We’re planning on spending a couple of days right in the park, and then a couple more on the outskirts, maybe cramming in some other fun spots–hoping not to completely overwhelm the kids along the way.
Florida in the summer might be exhaustive, but it’s actually a really good thing for us because it gives us a good year, and then some, to save. If you’re like me and find it hard to squeeze additional, “look-ahead,” money into your already tight budget, I find I have to trick myself into saving. The number one rule that I have is that we don’t touch emergency savings (that I’m just trying to build back up now after some legitimate emergencies).
Trick #1: Use the Chatelaine Example
A few months ago, Chatelaine had a great idea for extra savings–start with $1.00 the first week, and add a dollar for every week of the year. At the most you’ll be setting aside in one week is $52.oo, but at the end of a year, it’ll compound to over $1000.00. I’ve been doing this for 14 weeks so far, and it’s starting to add up.
Trick #2: Change in the Change Jar
It’s the oldest trick in the book–not spending your change (especially loonies and toonies). At the end of the day, empty your pockets into a gigantic jar or piggy bank (sealed, locked, away from prying hands), and it’s out of sight/out of mind. Check in every once in a while to roll it up and stash it in the bank in a super-hard-to-get-at bank account, and consider this your spending money.
Trick #3: Right off the Top
The easiest advice is to tuck the money away before you even spend it. The day your paycheque drops into your account, set up an automatic withdrawal, and shorten your budget by the amount. If you can only afford a few dollars, start with a few dollars. It just means you’ve got that much longer to go until you have your vacation stash. The reward will come in the form of a super stress-free holiday because you won’t actually have to pinch your pennies upon your return home.
Trick #4: Buy Your Tickets Early, Shop for the Bargains, Do Your Research
I know this isn’t necessarily related to how to save, but it’s more how to spend your money smartly. You’ll have more to splurge if you’ve done your homework (Butter Beer at Harry Potter’s theme park is expensive, I hear) and found a deal on airline tickets, hotel stays, and other such necessities. Start early. Make lots of notes. Use the internet to your advantage.
All in all, sometimes it’s hard to get started saving. To keep putting it off, to ignore the sage advice to “pay yourself first,” to dig a deeper hole because you need time away… But as someone who used to travel now and pay later, and pay, and pay, and pay, I’m much happier knowing that next summer we’ll be away with Mickey and his crew, and won’t come home to a pile of bills I’ll have absolutely no idea how we’ll pay.