Do you live paycheck to paycheck, or otherwise find that daily obligations get in the way of that vacation you dream of taking every summer (spring, fall, etc)? I came up with the following method for setting up a vacation budget years ago as a remedy for my travel-less, hand-to-mouth existence.

The Vacation Fund Plan works best for those who have a set amount of money they can save (no matter how small), who want to travel at a certain time, and who can be flexible about their destination. Still, it can work for just about anybody looking for ways to squeeze dollars into their travel money jar.

Here's how it works:

DECIDE
---How much money you can save each month.

CHOOSE
---An estimated target date for your trip.

DO THE MATH
---Multiply your amount you plan to save per month by the number of months until your trip. This will help you determine the type of vacation you're looking at.

NOT IMPRESSED?
---By the numbers? You may need to push back your intended travel date or increase the amount of money you can put into your fund. Find other sources of "lost" money, such as giving up one night's eating out per month and adding that money to the Vacation pot, or putting all your loose change in a jar (you may be surprised at how fast it adds up).

CHECK YOUR PROGRESS
When you are about halfway to your intended date of travel, count your savings and make any necessary adjustments to your overall estimate.

START PLANNING!
Use your revised estimate as a guide planning your vacation. For instance, if you will save $2,000 you may decide to look into a cruise or a week in Hawaii. If you can only swing $500 this year, consider a weekend getaway or jaunt to a more local tourist spot.

Not saving as much as you'd estimated? Make sure you are adding to the fund faithfully every week and that you've resisted the urge to "dip in" for splurges or emergencies. Make do with less vacation this year, or bite the bullet and do a drastic cut back on expenses for a while until you catch up.

Of course, you COULD use a credit card, but I found that this practice cut into my vacation fund for the following year, and ended up costing more in the long run. I tend to spend more freely on plastic, and subsequently had to pay interest to boot.

Good luck, and happy travels!