Are you dreaming of distant shores?
Do you long to explore far-flung destinations?
If you’re hoping to get away this summer, it’s worth getting everything in place now.
Putting in the planning and beginning to save for that perfect getaway early can make all the difference.
By following a few simple strategies, you can build up your savings so that you have enough to cover the costs of your dream holiday.
Create a Budget
Begin with a budget.
It’s likely you’re already keeping track of your expenses.
In the last few years, the rising cost of living has impacted how many of us manage our finances.
But even if you already have a robust budget in place, you’ll need to revisit this in order to build in saving for your holiday.
Should you need to set up a budget, take a look at your income and expenses.
Use bank statements from the last six months so you can get a picture of where your money’s going.
Then, divide your expenses into essentials and non-essentials.
- Essentials: This category includes your rent or mortgage, utility bills, groceries, insurance, and any other necessary costs. These are the non-negotiables.
- Non-Essentials: These are expenses like dining out, shopping splurges, and entertainment. While these add joy to life, they are areas where you can cut back to boost your holiday savings.
You’ll need to also account for anything you have on credit, such as your phone or any car finance. Checking your credit score is another way to monitor an aspect of your finances.
By understanding where your money is going, you’ll be able to work out how much you can realistically set aside for your holiday fund.
Start Saving
Once you’ve outlined your budget, you’ll be able to commit to regular savings.
Designate a specific amount each month towards your holiday fund. Even a small amount can add up over time, especially if you opt for a savings account with a high-interest rate.
Consider automating your savings by setting up a direct debit. This way, you won’t be tempted to spend the money you’ve set aside for your holiday.
Shop Savvy
When it comes to booking your holiday, don’t settle for the first option that comes your way.
Compare prices across different travel websites, airlines, and accommodation options and look out for deals, offers and discounts.
- Flight deals: Keep an eye out for airline promotions and sales. If you can be flexible when you travel, you might also be eligible for cheaper flights.
- Accommodation: Consider alternatives to traditional hotels. Websites like Airbnb or Booking.com offer a range of options to suit different budgets.
- Package deals: Sometimes bundling your flight and accommodation can bag you a discount. Research package deals to see if they offer better value for where you’re heading to on your holiday.
Set Goals
Saving becomes more manageable when you have a clear goal in mind.
While your overall goal is to use the money for your holiday, you can break this down.
For instance, you can save a specific amount for your flights. When you’ve reached that goal, you can go one to save enough for activities you want to try or attractions you want to see.
By saving for your trip, you’ll be able to have the holiday you dream of.
Take the time to plan out how you save and ensure you have enough money to enjoy yourself while you’re away.