(BPT) – As the weather gets warmer, many are feeling a strong dose of wanderlust. And while it is tempting to take the PTO and book a ticket to the destination you’ve been thinking of, the hike in travel costs (and daily living expenses) may make you feel a summer vacation is out of reach.
You’re not the only one — according to the recent SoFi Travel Habits survey¹, 56% of SoFi members said they decided against traveling altogether due to rising costs during the planning process. However, depending on your financial situation, that doesn’t mean a vacation is totally out of reach if you know how to plan and where to find deals. With the right planning and saving, going on a vacation while staying on top of your personal finances is completely doable. Here are a few recommended tips:
Plan before you go
When planning out your vacation, make sure to shop around and compare costs of different flights, destinations and packages. It may surprise you that sometimes opting to buy an all-inclusive international travel package can be less expensive than a local vacation. Doing your research and making those comparisons will allow you to make the most informed decision before hitting “buy.”
Also, when possible, try traveling during the early mornings and late nights, as fewer people want to travel during these times, making tickets more affordable.
Automate saving for your trips and trim costs where possible
Once you have a ballpark figure of how much you intend on spending for your vacation, make sure to budget for that amount as early as you can to give yourself some room to save toward your goal. In fact, in a recent SoFi Travel survey, one-third of SoFi members report saving for trips 6-8 months in advance, so if your circumstances allow for it, you can even try planning for a vacation during the off-season to make saving easier.
The most efficient way you can begin putting away money for your trip is by setting up automated savings. When you automate your savings, you are setting up your bank account to routinely transfer a specified amount from your checking to your savings. Some financial institutions offer an automated savings feature so you can “set it and forget it,” making sure your vacation money never even hits your account and goes straight into savings.
To make the most of your savings, consider a financial institution that offers both automatic savings and a high-yield savings account. SoFi Checking and Savings² offers Autopilot to set savings aside automatically as it hits your account, as well as 4.30% Annual Percentage Yield (APY)³ for direct deposit members, to make saving easier and to offer more back for your money.
Trim pricey treats before the trip
Of course, automating your savings only works if you have budgeted appropriately and can afford to miss the amount you set toward your savings. If you find that you are having trouble with this, try doing an audit of your spending, and identify what you can stop spending or spend less on.
Using an app or a tool that your bank offers may help you audit your spending habits more accurately. SoFi Insights⁴, a financial tracking tool, highlights your spending trends and how much you’re saving every month. This helps you manage your spending better, and identify places you can potentially trim a little if you need to set aside extra funds for your upcoming vacation. For example, it can easily show you how much you’re spending on takeout each month. Most of the year that spending may fit into your budget, but as you gear up for vacation, instead of ordering takeout multiple times a week, consider making it a weekly treat until you reach your savings goals.
Use your cashback, plus any and all discounts you have access to
Since travel costs are expected to be high this summer, this would be the prime time for you to redeem any discounts you’re offered or cash back you’ve accumulated. Make sure to use them wisely depending on your circumstances. For example, if your destination is more drivable, opt to drive and use your cash back on the hotel stay or an experience that would have otherwise been more expensive to book.
One way you can make sure that you are getting the best discounts and deals for your trip is by choosing an intuitive platform that delivers a seamless booking experience and allows you to make an informed decision. SoFi Travel⁵, powered by Expedia Group, offers members access to discounts and rewards on everything from flights and car rentals to hotels and travel packages. SoFi Travel also offers an unlimited 3% cash back⁶ for members who book travel with the SoFi Credit Card⁷, which means more rewards back in your pocket to redeem for cash, invest⁸ or pay down eligible loans⁹, allowing you to book your travel and manage your banking, investing and more all in one place.
For more information, you can visit: https://www.sofi.com/sofi-travel/.
DISCLOSURES
1. Source: Based on the SoFi Travel Habits Survey of 1,466 SoFi members from April 4 – 16, 2023.
2. SoFi Checking and Savings is offered through SoFi Bank, N.A.
3. SoFi members with direct deposit can earn up to 4.30% annual percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.30% APY for savings. Members without direct deposit will earn 1.20% APY on all account balances in checking balances and savings balances without direct deposit (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 6/9/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
4. SoFi’s Insights tool offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. The credit score provided to you is a VantageScore^® based on TransUnion^® (the “Processing Agent”) data.
5. Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.
When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.
Eligibility:
You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia’s website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.
SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/.
Terms applicable to Member Rewards: https://d32ijn7u0aqfv4.cloudfront.net/git/docs/rewards/Enroll%20-%20SoFi%20Member%20Rewards.pdf.
Additional Terms:
Changes to your bookings will affect the Rewards balance for the purchase.
Any canceled bookings or fraud will cause Rewards to be rescinded.
Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger.
SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).
6. *See Rewards Details<SoFi.com/card/rewards>
7. The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
8. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA (www.finra.org)/SIPC (www.sipc.org).
9. Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2022 was around $30K. Information current as of 05/30/23. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.