It's that time of year. Time to be dreaming of taking time off from work and heading to a much happier place - vacation! However, when you start checking the prices of hotels and flights, your vacation dream may turn into a nightmare. Don't let this happen. Use these tips to save money on this year's vacation.

Tip #1 - Buy Early - Avoid booking flights during the height of vacation season. Plan ahead, buy travel insurance, and book your flight. You will get the benefit of lower off-season booking and if anything happens; your vacation is covered by insurance.

Tip #2 - Buy Late - If planning ahead isn't for you, wait until the last moment and see what last-minute deals you can snag. If you keep several trips in mind and are flexible about going to whichever one you get the best deal on, you could really save some money. This type of vacation planning is for "spur-of-the-moment" kind of people but if you fit in that category, it's a great money saver.

Tip #3 - Shop Discount Sites - There is a new discount travel website every day. Take advantage of this and compare prices. If you don't feel comfortable going with a lesser known or new site, get the prices that they're offering and then go to some of the well-known sites and see if they will match your deal.

Tip #4 - Be Flexible - Airlines charge for tickets depending on the availability of the seats per flight. By willing to give up your seat and take a later flight, you can often get a free ticket or a big discount on your flight.

Tip #5 - Go as a Group - Plan your vacation with others. Groups can get great discount rates because they buy in volume and reserve hotel rooms by blocks. Try to get a group together, and make the reservations together. Once at your destination, you can do things together as a group or go your separate ways.

Tip #6 - Travel Off-Season - If you have a flexible work schedule, take your vacations when everybody else isn't. By traveling during off-season, you can take advantage of the lower hotel rates and lower flight costs. Your vacation spot will be less crowded also due to it being off-season.

By comparison shopping for hotel costs and flight tickets, being flexible, traveling as a group, and trying an off-season vacation, you can save money on that vacation you've been dreaming about.