How to start saving for a holiday

No one wants to be worrying about money on holiday. It’s your chance to let go a little, enjoy your surroundings and do things you wouldn’t normally do back home. Saving enough money is key to giving you that freedom, but it certainly takes planning and discipline.

Paying for transport and accommodation upfront is just one half of the battle. You also need to save enough to spend while you’re away. What are some handy tips to help you do that?

Research and budget

Research and budget well in advance to highlight how much you need and by when. If you’ve already booked your holiday then you’ll have a clear figure to aim for. If you’re yet to book, look at average costs online and calculate as well as you can.

Overestimate the amount you need to save. It’s always better to have too much rather than too little, especially when you’re trying to enjoy yourself.

Start small

The longer you give yourself to save, the less you can afford to put away each month. Starting small allows you to limit the impact on your wider life. Ideally, you’ll want to avoid dipping into other savings.

Make small regular payments if you’re able to and you should reach your goals more reliably. Saving little and often can also help to improve your credit score which will be useful for your chances of borrowing for holidays in the future or for other big purchases such as a house or car.

Create a separate pot or account

It’s a good idea to have a dedicated savings pot or account for your holiday. This should reduce the temptation to spend money you’re putting away. It also makes it easier to visualise the amount you have saved and keep track of progress towards your goals.

Many banking apps have handy saving pots which allow for easy access. Or you can opt for accounts with higher interest rates to benefit from a little boost to your funds if your trip isn’t planned for a while.

Cut your spending

If you’re wanting an extravagant holiday, finding ways to reduce your regular spending will help you to free up disposable income to put aside. You can identify unnecessary expenses in the budgeting process which are easy wins when it comes to saving.

Consider if you have any unused subscription services or if you could take a packed lunch to work more often. A little bit of sacrifice may be needed if you want to have the trip of a lifetime. Good luck!

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