We recommend using a high yield savings account for your travel funds, to keep it organized away from your checking and basic savings, and because some of it will likely sit untouched for months at a time.
A high yield savings account (HYSA) is a type of savings account that earns interest (APY or annual percentage yield) and helps your money grow passively at a rate that is much higher than a regular savings account (2.0% vs .01%).
Open a HYSA with a bank that requires no minimums or fees, but also offers a high APY.
Note: Ally and Capital One allow you to open one savings account and create “buckets” for different saving goals if you like having less accounts open.
2. Give your savings account a name - “My Travel Fund”
Amazing! Now you have a travel fund in an account that will help your money grow passively.
3. Fund Your Trips!
If you have leftover funds in your checking or savings accounts, move money to the Travel Fund in the amount you need for your upcoming trips.
If you will save as you go, determine when you need the money for your trips, divide by the months between now and then, and set up a monthly auto-transfer until you meet your goal!
Reflection
Where can you save money on your trips? What is a non-negotiable, and what can you do without?
Talk to your coach for tips on spending money while traveling!
More Money Resources
Join us in our FREE community and discuss your travel plans!
Tell us how you are planning ahead to travel without guilt.
Discuss your other 2023 financial goals
Celebrate your money wins
Relate with other members about the ups and downs of managing money