Divide your remaining trip cost by the months until your trip. For a $3,000 vacation in 12 months with $500 already saved, you need $2,500 / 12 = $208.33/month. If you invest at 5% annual return, the required monthly contribution drops to about $202 because your money earns interest.
- $1,500 trip in 6 months: $250/month (or $57.69/week)
- $3,000 trip in 12 months: $250/month without growth, ~$242 at 5% return
- $5,000 trip in 18 months: $278/month without growth, ~$263 at 5% return
- $10,000 trip in 24 months: $417/month without growth, ~$388 at 5% return
- Automating transfers on payday prevents the temptation to skip
| Trip Cost | 6 Months | 12 Months | 18 Months | 24 Months |
|---|---|---|---|---|
| $1,500 | $250/mo | $125/mo | $83/mo | $63/mo |
| $3,000 | $500/mo | $250/mo | $167/mo | $125/mo |
| $5,000 | $833/mo | $417/mo | $278/mo | $208/mo |
| $10,000 | $1,667/mo | $833/mo | $556/mo | $417/mo |