A Message from Bob Dreizler, Chartered Financial Consultant:

For more than two decades, I've helped people seek financial security while honoring their emotional and social concerns. During this time, I looked for but never found a practical and engaging money management book I could recommend to my clients, so I wrote Tending Your Money Garden.

As a specialist in socially conscious investing, I enjoy educating people about how their investing habits can impact more than just their assets. I hope this column will help you enhance your financial situation so you can fulfill your dreams.

Pre-Fund Your Vacation and Really Enjoy Yourself

Even though it's winter, are you still paying for last summer's vacation? The fact is vacations can be expensive, but they're worth it when they provide you with some well-earned relaxation and stress relief. The trick is to plan ahead--and start saving early. Then when you return from vacation, your memories of the trip won't be ruined by a whopping credit card bill.

When planning the trip, there are lots of decisions to make:

Where to stay?
How long to stay?
What clothing to wear?
Which potency of sunscreen to bring?

Most people know where and when they want to vacation next, but few estimate how much the trip will cost. It's safe to assume that a vacation will cost more than you anticipate, so it's usually smart to add in a cushion. Once you come up with a realistic estimate, calculate if you can save that amount before the target departure date. If it looks like a stretch financially, consider the following options:

Scale down your vacation plans by shortening the trip, booking a less expensive hotel, or traveling off peak.
Increase your savings by reducing other expenses, such as dinners out or non-essential purchases.
Decide how much additional debt you are willing to incur.
Postpone your trip until you can comfortably save what you project it will cost.

By pre-funding your vacation, you not only stand to enjoy it more because it's already paid for, but also you will spend less for the same trip. Here's how it works:

Paying for Your $5,000 Trip with Plastic: You return home from your vacation and begin paying $405 a month on the $5,000 balance on your 15% credit card. Your trip won't be paid off for 13 1/2 months. Total cost: $5,468.
Pre-Funding Your Trip: As soon as you settle on your vacation plans, start saving $405 per month in a separate savings account. If you earn 6% interest, you will save $5000 by the time you start your vacation in one year.

Consider the $468 you would've spent without pre-funding as extra spending money to use on the trip. Reward your diligence and savings savvy with a skydiving lesson or an extra night at your favorite resort. At the very least, you should treat yourself to a few more purple rum drinks and mambo lessons.