Since the coronavirus pandemic situation began, one of the biggest effects the economy has seen is the significant drop in travel due to safety and health concerns.
Between canceled business trips and vacations, travel and tourism have taken a huge hit. However, our credit union accounts have reflected the opposite; the money you set aside for travel is now freed up! Whether you have a couple hundred or thousands extra dollars sitting idle, here are our top tips on how to make the most of those untouched funds.
Simply Save It
It’s perfectly acceptable to leave your funds where they are and hope for a vacation next year. But why not consider getting a little more bang for your buck with a money market? You’ll continue to add to your vacation fund and be happy about it in the long run!
Take saving a step further by placing your funds into a short term certificate of deposit (CD) and hold on to it or consider making the holidays extra special this year. You could also opt for an IRA to give your retirement savings a boost.
Pay Those Bills Down
Be sure to start by paying off the debts with the highest interest rates (typically credit cards), then move on to other loans. While this may not be as exciting as going on a vacation, the sense of relief you’ll feel once you’ve paid off some debit is satisfying.
Use It for Home Improvements
Most people have a few large home projects that they’re working toward. Whether you want to remodel a bathroom or kitchen, replace the old washer and dryer or add on to your outdoor space, now is the time! Using your vacation funds to add value to your home really pays off in the end.
It’s tempting to want to spend your extra money on new clothes, gadgets, etc. While you probably don’t want to spend all the money you saved up for your vacation, you could set aside 10% of it to treat yourself to something nice. Since you won’t be spending on a vacation, it’s ok to give yourself permission to spend a little on yourself.