Going on an international vacay can be very exciting; however, it takes a lot of preparation and thinking; from choosing a destination to knowing the necessary things to bring. Aside from that, there are also many things to organize which is why it’s best to start the preparation months before the departure date. Though the preparation and planning part is important, what’s more, crucial is the finances that the trip will demand.
When it comes to traveling or vacations, there are types of costs that are involved: flights, accommodations, food, transportation, and miscellaneous. To have things properly laid out, it’s important to consider all of these costs to have the perfect vacation experience.
On the brighter side, planning for your travel a year ahead means that you’ll have time to save money for the vacation proper. While you’re at it, you might as well consider utilizing a financial tool that allows you to earn interest on your money and shorten the time where you will reach that financial goal. There are two options to achieve that savings goal: A high-interest savings account or a GIC.
Using a GIC
For instance, you are looking at an estimate of $6,670 cost for two for a trip to Europe; you’ll have to save $555.83 every month to afford the vacation in a year. However, if you decide to place this money in a GIC, you’ll only have to invest it in a lesser period since interest will make it achievable in a shorter time. Moreover, you should also consider that you can only use your money until your GIC is mature, so it’s important that you plan it out properly.
High-Interest Savings Account
You can also consider choosing to use a high-interest savings account where you can save your money and let it compound through time. Compound rates vary, but providers usually offer it at 2.5%. This option is also great because you can deposit and withdraw your money whenever you please without needing to mind about maturity dates and others. Also, high-interest rates offer higher interest rates if compared to GICs.
Whichever method you decide on for your vacation needs, what’s important is that you carefully consider your options and your plans for you to have a successful and great trip experience.