I spent my holiday vacation in Costa Rica. That's not the norm for my family, but I decided it was time to round up the kids and take them on a trip that would be fun, educational and a little adventurous. No more of this lying on the beach business — we went rafting, zip-lining and camping. As soon as I decided that this trip was among my goals for the year, I started planning — surfing the Net, calculating vacation costs and plotting where the money would come from to cover it. I wanted to avoid the traditional post-vacation hangover. You know the feeling: You return from your break not refreshed, but stressed out about the fact that you either blew your budget to pieces or racked up credit-card debt that you'll spend the next year or more paying off. If you're planning a vacation for later this year, take the time right now to not only scope out deals, but also approximate what the final tab will be and start saving. If you start planning now, you'll be able to enjoy your vacation knowing you have the money to pay for it. Scout out the dealsIt's all about doing your research. If you hop on the computer, you can compare similar locations, flights, hotels and car rentals to find out where your dollar will stretch the farthest. You can also compare the cost of leaving on a Friday to a Saturday (hint: A Saturday flight is almost always going to be cheaper) or a morning to an evening."A lot of it is educating yourself and spending the time finding deals. You don't need to book early, but you should start gathering the data as early as possible," advises Fiona Lake Waslander, director of travel for Yahoo! Once you've chosen your destination, pick a date that gives you enough time to save, but not enough to procrastinate. Then estimate the cost. Add in costs such as spending money for souvenirs; extra fees; taxes from airlines and hotels; and gas for a rental car. Once you have a ballpark figure, add another 5 percent to 10 percent in case you go over, which you very well might. If you come home with extra cash, all the better.Keep your goal on the top of your mind
If you want the strength to say no to that fantastic new dress or your daily cappuccino, you need to have a bigger goal to focus on. Every time you have the urge to whip out your credit card, picture yourself on the beach, on a cruise or camping in Costa Rica. If it helps, put a picture of your destination in the slot next to your credit card in your wallet. "Knowing that the alternate use of the money is a great vacation may make it easier to cut out the expense," says Bob Nusbaum, a financial planner in Pittsburgh. Find extra cash early
Cutting small things from your budget over six months or a year's time is a lot less painful than spending the month before your vacation on house arrest to save up at the last minute. Not only that, but the earlier you invest your savings, the more interest you'll garner, and that's free money. To do it, Nusbaum says to spend a good chunk of time tracking your spending, so you know where every dollar you withdraw from the ATM is going. Once you have a few weeks' worth of data, look it over and ask yourself what was a necessary expense (a reasonable grocery bill, for instance) and what wasn't (eating lunch out each day instead of packing those groceries). If you receive an extra chunk of money throughout the year — a tax return, a bonus, a gift from a family member — and you're all set where your debt and retirement savings are concerned, go ahead and stick that in your vacation fund as well. Make it automaticOnce you've cut the fat, come up with the amount that you can put away each month for your vacation fund. Set up your bank accounts so that amount is automatically transferred monthly from your checking account into your vacation fund account. Not only does this allow you to put the whole savings process out of mind, but it also takes the cash out of your hands before you have a chance to squander it. Treat these fund transfers as you would any other bill that must be paid monthly.
Earn interestDon't let that vacation fund fester under your mattress or in a plain-vanilla savings account. Instead, find a good money market account that will earn you at least 4 percent in interest. A good place to look is bankrate.com, which allows you to compare accounts at a variety of banks. You'll likely find the best rates at online banks, which pay upwards of 5 percent in exchange for the inconvenience of not being able to make your transactions in person. Since this is a vacation fund (meaning you won't, or at least shouldn't, be making random withdrawals), and your contributions are on autopilot, that's not a problem.
Use your pointsIf you're a frequent traveler, you likely have miles and hotel points saved up. Why not use them now? Loyalty-program points will reduce the out-of-pocket cost of your trip, and the savings can really add up. Call airlines and hotels directly instead of booking online for the most success.
Jean Chatzky is an editor-at-large at “Money” magazine and serves as AOL’s official Money Coach. She is the personal finance editor for NBC’s “Today” show and is also a columnist for “Life” magazine. She is the author of four books, including “Pay It Down! From Debt to Wealth on $10 a Day” (Portfolio, 2004). To find out more, visit her Web site, .