Even if you manage to find a cheap flight, taking a vacation is still expensive. You need to buy travel insurance, pay for your accommodations, feed yourself, pay admission into attractions, and of course buy lots of souvenirs. Saving enough money for a vacation might not be a problem for someone with a high paying job doing search engine optimization in Ontario, but for the rest of us it can be a struggle. Here are some saving tips to help you reach your goals faster.

The most important thing to remember is that taking a vacation on credit is never a good idea. Credit cards have very high interest rates and combining that with the currency conversion rates the credit companies charge on your Toronto bed & breakfast or hotel in Prague, and you're signing yourself up for a mountain of debt you'll be paying off for a long long time. So be smart and only spend money you know you have.

In order to find out how much money you'll need to save up to afford your vacation, plan a sample itinerary that includes flight, hotel, insurance, and attractions and use it to calculate a budget. You should save up an amount that covers these expenses, plus an extra few hundred dollars to keep in reserve just in case you get stranded or break something at the cheap postcard printing shop.

To save money, be dedicated and willing to make sacrifices. Instead of buying expensive Starbucks coffee, make some at home before you leave for work. Each penny saved counts. It brings you one penny closer to your goal, whether it's to start your own business or go on an exotic vacation. If you don't have a great memory, you can set up a monthly auto-transfer of whatever amount you can afford into your savings account, or sign up with a bank (like Scotiabank) that gives you the option of rounding your debit purchases to the next dollar and depositing the rest in a savings account.

Savvy savers know that the money they've already saved can be put to work earning more money. Savings account interest earns you pennies a year, but if you put it into a bond, stock portfolio, or Canadian ETF, you have the chance to earn much more. Just remember - the higher the risk of the fund you choose the more you will make, but there's a chance you might lose it all and have to start over.