Savings Section:
How to Have
a Cheap Vacation

When money's tight, vacations are no day at the beach. In fact, it's tempting to just postpone until next year. But vacations are important. Not just to recharge, but to learn a little about the world and spend time with those you love. And, if you don't take a vacation, you could be taking a financial step backward in the long run as this can lead to poor job performance. And that can mean missed opportunities. A better option is to take a break and control your costs. Here are some tips to making it happen.

  There are three great reasons to save up for your vacation.   First, if you put your vacation fund in a money market account or a certificate of deposit (CD) you'll earn a little interest along the way. Second, you'll put less of your vacation on a credit card, and won't be stuck with a big bill. Third, it'll get you thinking about your vacation and looking for deals ahead of time. The key to saving is planning.

  Don't go to Europe.   Don't get us wrong, France, Britain, Spain, Portugal and Italy are wonderful places to see. But not now. The Euro is too strong. A few years ago, a hotel room that cost 100 Euros would cost about $100. Today, that same hotel room will cost about $130. Yikes. If you want to see Paris, wait a few years or wait until you have a lot of money. Europe's been there for thousands of years and can wait a few more.

  If it doesn't matter when you go on vacation   and if you can leave on a couple day's notice, leverage your flexibility for cheap fares. Many cruiselines, airlines and hotels have email-blast mailing lists offering locally targeted cheap fares to fill rooms, planes and cruiseships. Visit various companies' websites and establish an account for the email-blasts. Then just play the waiting game.

  Consider vacationing in your backyard.   How many times has somebody mentioned a nearby town or preserve and you said to yourself, "Yeah, we should check that out." If money is tight, make this the year you see all the sites in a 200-mile radius, saving on transportation costs.

  Cut your vacation in half.   Do a four-day trip. As long as whatever you do is relaxing there's no rule that you need to travel for six days or more.

  Volunteer.   Churches and other charitable organizations often have trips to exciting places to do charitable — usually physical — work. These aren't everybody's idea of a vacation, but some people get more of a charge out of helping others and hard work, than they do from sipping margaritas on the beach. And these trips are usually affordable.