Preparing for your holidays? Looking forward to a well-deserved break is one of the best feelings. But money worries can overshadow this sense of excitement, so it’s best to avoid this with proper planning and plenty of saving towards your goal. Accumulating the funds to cover your trip is easier said than done in many cases, but here are some tips to help you do it a little more effectively.
Work out how much you need
First, you should have a rough idea of how much you need for your holiday, including the cost of transport, accommodation, spending money and any extras you can think of. It’s always better to overestimate rather than under because having too much is preferable to having too little. After all, you want to make sure you enjoy your time away rather than worrying about spending.
Create a budget
Saving for a holiday without a budget makes your task so much more difficult. Whether you’re in the habit already or not, a budget gives you oversight over your finances and allows you to see how much you can save and by when.
List your income and expenses and see what spare cash to have to work with. With an overview of your money, you can optimise areas of spending or look to boost your income if you’re falling short of your savings target.
Save on payday
One of the best ways to save larger amounts is to set it aside on payday, rather than seeing what’s left over at the end of the month. It’s all too tempting to dip into money that you’re reserving for savings, so send it to a different account early on to put a barrier between yourself and it.
Your budget is crucial here because you can outline where your money is heading at the start of the month to ensure you have all bases covered. A chunk put aside to savings shouldn’t leave you short elsewhere, ideally.
Cut down on unnecessary spending
If you’re struggling to save enough for the holiday you want, it may be time to tighten your belt. Reducing unnecessary spending is a great way to unlock more from the money you earn every month – it can really feel like free money out of nowhere!
Consider any subscription services you no longer use or whether you actually need that new pair of shoes or video game just yet. And maybe go easy on the Chinese takeaways and meals out – save your pennies so you can enjoy these little luxuries whilst you’re away on holiday instead. A little sacrifice may be worth it for the sake of an amazing trip.
Make use of loyalty and cash-back schemes
There’s no better time to make the most of your existing spending than when you’re saving for a getaway. Every little bit you can add to your holiday fund can make your trip that much better.
Most companies you buy from regularly, whether that’s supermarkets, petrol stations or coffee shops, will offer some sort of reward or cash-back scheme. Use these to your advantage and top up your savings pot with everything you save. You might also want to consider building up points on a credit card, which can then be put towards everything from flights to hotel rooms.
