To save or pay off?

[fastergoofy]

One thing I dislike about going on vacation is that sudden outflow of cash. It hurts! So I'm pondering the pros and cons of paying off the vacation a little bit at a time. What do you think? Is this something you've done? How do refunds work if it turns out you can't go?

If you do opt to put it away in a piggybank instead, what is your preferred method for storing money? A separate savings account? A well-stuffed mattress?

 

[kissy]

If I can pay it over time I will. WIth Disney, I made $20 payments every week. When DH got a bonus we paid it in full!

 

[furb & dez]

We always pay for bits at a time, so that by the time of the trip, it's totally paid for. We might buy the airfare, then later pay for the hotel, then the tickets, etc.

 

[disneyofcourse]

I just have a vacation account (savings account at the bank) and every month money gets transferred into it from checking. Some times if I have extra money I'll just take a weeks paycheck and deposit it in that account. I don't use it for anything else and hardly ever look at it until its time for a vacation.

Same thing with home repairs, each month a certain amount goes into that account from checking. So if the fridge breaks I get the money from that account.

 

[LoriKutchey]

I also have a vacation category in my "freedom account" so money is set aside every month. Since we do a vacation every year.

http://www.getrichslowly.org/blog/2008/05/12/use-a-freedom-account-to-prepare-for-the-unexpected/

 

[ktmo]

I just opened up an ING savings account for our vacation money. I had been just using our regular savings, but then it was difficult to keep track of what was our "savings" and what was our "vacation money". I put a certain amount in each week. If I find that we have extra money certain week, I'll add that to it. It has been working out pretty well. I should have our next vacation paid for by the time we need to make final payment.

 

[GaSleepingBeautyFan]

I like to pay it off a little at a time. If I have a room only ressie, I keep the money in our savings account that is for vacations only. When I return from the vacation, I pay it off.

For vacations that are booked as a package which we don't do often, I pay the company in bits when I have the money rather than putting it into savings and pulling it out later.

 

[fastergoofy]

Thanks for all the replies!

So right now I have a room-only reservation for May. If I pay off the room before the vacation, will they refund the full amount up to a certain date? What happens if there's an emergency and I cancel day-of?

 

[janabananas]

Thanks for all the replies!

So right now I have a room-only reservation for May. If I pay off the room before the vacation, will they refund the full amount up to a certain date? What happens if there's an emergency and I cancel day-of?

Room only's have a 5 day penalty. You can cancel up to 5 days before and still get your $$$ back. I am not sure if you lose all you pay into it or just the 1 night mandatory deposit.

 

[Keira1387]

Another great way to save, that I learned here on the budget board, is smarty pig! Which is basically a online savings account. You make goals and earn interest while saving.

 

[Port Orleans fan]

I have a hard time saving money because I like to dip into my funds when I see something new that I must have.

So I use my Travel Agent instead of a savings account. Every month I go to my travel agent and pay her $500 to put towards my balance. This way my vacation gets paid off, and there is no temptation to spend money on useless things.

 

[DawnM]

I have an ing account for vacation

 

[Tinkerbellie16]

I have a Disney Visa that I use for the actual Disney portion of the vacation (hotel & tickets & sometimes dining plan). When you buy the Disney package, you get 6 months no interest to pay it off. The credit card is free (no annual fee) and I always make sure I have the money saved before I put it on a credit card. So if needed, I can pay it from savings. BUT I prefer to use my extra monthly money for vacations and spread it out. I never use the 6 months but rather about 3 months. That way, I can spread it out over a few months, use our extra money each month, and not pull it out of savings.

Additionally, you get 1% back in Disney dollars when you use the credit card. So I usually rack those up as well before a vacation and use it for food or souvenirs at the resort.

As for a savings account, our family has several. We have vacation savings accounts and separate emergency and super-emergency accounts. Our children have their own accounts that they put their extra money in (usually this is from family members for birthdays and holidays and I always put a little in each month for them). So the kids pay for their OWN vacations. And they bring their OWN cash to spend. DH and I will not pay for the souvenirs or snacks or whatever extras they want. That way, they choose what they want and are spending wisely.

 

[Ryansdad0727]

I also have an ING account just for vacations. I put a certain amount each month and don't touch it except to pay for vacation related expenses on my Disney Visa. I actually have 4 ING saving accounts. It keeps everything nice and neat for me.

 

[StitchBuddy]

Personally, I love to have the trip paid for ahead of time. I just enjoy it more.

 

[fastergoofy]

Another great way to save, that I learned here on the budget board, is smarty pig! Which is basically a online savings account. You make goals and earn interest while saving.

Thank you so much for mentioning smartypig! I had never heard of it before. I think I'm going to set up an account with them.

To everyone: Am I dumb or is there no way to add more to your room deposit on the Disney website? Do you have to call in?

 

[Keira1387]

Thank you so much for mentioning smartypig! I had never heard of it before. I think I'm going to set up an account with them.

To everyone: Am I dumb or is there no way to add more to your room deposit on the Disney website? Do you have to call in?

Glad I could help! It is my favorite way to save!

 

[dissybroad]

I figure cost of trip, then how long will it take to pay for in monthly payments on the package, then plan time frame, then book.

If I can pay $500/month for a $5,000 trip then I book ten months plus 45 days out.