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Money Management Tips: Saving For A Holiday

It is that time of year again. Time to relax and enjoy the summer.

If you haven’t already, it is time to plan a summer holiday. Today, we are looking at how to save for a holiday and five strategies you can use to make travel easier on your bank account. Keep reading to find out more.

How Much Should You Save For A Holiday?

Let’s start with one of the most common questions: How much should you save for a holiday?

Deciding how much to spend on a holiday can be difficult and depends on where you want to go. The best rule of thumb is to estimate how much flights, accommodation options and activities would be in the place you want to visit. You can then divide this amount up and deduct it from your monthly budget to see if you can afford to save the money before the date you want to travel.

Experts also suggest saving an extra 10 to 15% of the overall holiday cost, as you do not want to go over budget and get caught short on holiday.

Holiday savings do not appear overnight. So, it is important to take money management seriously and start planning at least six months in advance to give yourself time to save before you travel.

5 Money Saving Tips For Summer Holidays

Prepare your personal finances for the summer now. See five expert-approved strategies to save for a holiday below.

1. Track Your Daily Spending

Before you start budgeting for a trip, you need to know how much you spend in an average month. Without this information, it is hard to know how much to cut back and where you can save.

So, track your expenses for at least 30 days. This can be done via a spreadsheet or by looking at your bank statements. Budgeting apps can also be very handy, especially when you want to start spending less.

2. Use A Separate Savings Account

Saving money is often easier when you can see it adding up. A designated savings account can motivate you to reduce spending when you see cash building up for a holiday. You can even automate a monthly transfer into the account so you don’t get the chance to spend the money on payday.

3. Consider Package Holiday Deals

Package and discounted holidays make travelling easier and often come with lower prices. These options are perfect for those who want to remove the stress from a getaway.

However, if you are keen to book your travel, accommodation and meals yourself, a package deal might not suit your travel style.

4. Look For Free Activities

Step back from the mindset of “I may as well spend money since I am on holiday”. No matter where you go, there are plenty of free and low-cost activities and tours to enjoy.

Top options include:

Of course, you should treat yourself to a few paid activities. But don’t forget to take advantage of the affordable ones, too.

5. Spread The Costs

If you have a big group of friends or family, round them up and travel together. Larger accommodation bookings or Airbnb often work out cheaper when you book with big groups and share the costs.

You can also divide up food, travel and spending costs, making it easier to organise and more affordable for all involved. Just make sure you plan ahead!

How To Save For A Holiday- The Bottom Line

Saving for a holiday does not have to be a stressful experience. With good planning and discipline, you can save for the summer without impacting your living expenses. Safe journey!

More Information

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For more helpful information about how to manage your money, different financial products or what we do at Polar Credit, take a look at our Info Hub.