In the Virgin Islands, families look forward to annual vacations that take them to exciting destinations. However, to visit their favorite places, the family must generate enough savings to cover the cost of the vacation. A local financial advisor provides a careful plan for generating savings for the family vacation.
Start a Vacation Savings Account
A vacation savings account is designed specifically for generating savings for family vacations. The accounts generate more interest than standard savings accounts. A financial advisor determines when the family should start the savings account and the initial deposit. A beneficial option is to use a portion of their tax refund to start the fund.
Reviewing Bonus Options for Opening an Account
Select banks offer an initial bonus for opening a vacation savings account. The bonus could range up to $250 through some banks. The financial advisor reviews all opportunities available to the family that helps generate adequate funds for their annual vacation. The destination for their vacation determines how much they need, and an added bonus helps the family generate interest at a faster rate.
Creating a Budget to Generate Savings
The advisor reviews the family’s current household income and determines if any cuts are needed to reduce their spending. The budget includes all their household expenses and necessary expenditures. Entertainment and dining out are cut down to a minimum. The advisor identifies the exact value that the family contributes to their savings plan each pay period. Whenever possible, additional contributions are made when the family receives an increase in pay.
Residual Income Opportunities
Residual income opportunities help the family generate more savings, too. Investments in stocks generate dividend income. The family transfers the dividend income into the vacation savings plan. If the family sticks to the budget, they generate adequate savings to cover the full cost of their annual vacation.
In the Virgin Islands, family vacations generate lasting memories. Before families plan out their vacations, they need adequate funds to cover the full cost of their annual vacation. A vacation savings account is a beneficial strategy for generating the funds. A financial advisor helps families start the right plan. Families that want to learn more about saving for a vacation contact Kirk Chewning right now.