With life so busy for most of us these days, planning and enjoying a holiday is more of a necessity than a luxury. It offers a chance to unwind, escape the daily grind, rejuvenate, spend time with our loved ones, and to create lasting memories. Having travelled to ten different countries already this year with a few more planned, you could say I’m a stickler for a holiday! One of the questions I’m asked the most is ‘how do you afford your travels?’ Some careful planning, budgeting, and experience with seeking out travel deals is usually the trifecta to squeezing in multiple holidays throughout the year. In this guide, I’ll share all my tips on how to save for a holiday without derailing your finances.
Set Clear Goals
Before you start saving for your holiday, I’d recommend defining exactly how you want your holiday to look. Where are you planning on visiting? What type of accommodation are you looking for? All-inclusive or self-catered? Will you be out most days doing activities or day trips? Understanding how you want your getaway to look will help you to estimate the overall cost of your travels, and to set a realistic savings goal. Goal setting is an important part of knowing how to save for a holiday.
Create a Budget
Now that you know your holiday savings goal, you should work on creating a detailed budget for your holiday. This is where I get stuck into Google Sheets, dropping in different details into a template. My spreadsheet includes all possible expenses, including transport and flights, accommodation, meals, activities, travel insurance, and getting to and from the airport. By being thorough in your estimations and including a buffer for unexpected costs, you’ll be well prepared for your holiday.
Establish a holiday savings timeline
The next part of knowing how to save for a holiday is deciding when you want to travel. Make sure you’re factoring in key variables like the weather and climate in the destination you’re saving for. Knowing when your holiday is will help you to allocate your savings target over a fixed period of time. The longer you have to wait, the less you’ll need to contribute each month towards your travel fund. Having a timeline also means you can take advantage of seasonal sales and promotions.
Create a savings account
One thing I try to do is create a separate savings account just for my holiday fund. Having this separation helps me to stop feeling tempted to dip into my holiday savings for other things like clothes or homeware! I’d recommend choosing an account that has a competitive interest rate so that you can hopefully maximise your savings. Each month, I also arrange an automatic transfer from my current account to my holiday savings account. This means that every payday, I save money for my holiday without having to think about it.
Cut down on unnecessary expenses
Another thing I like to do when it comes to how to save for a holiday is to review your monthly spending habits. Reviewing your credit card and bank statements can reveal some areas where you might be able to cut back. Maybe you can reduce the amount of times you dine out, or cancel unnecessary subscriptions. You might even be encouraged to find cheaper alternatives for daily essentials like groceries or coffees. Put any savings towards your holiday fund.
Sell any unwanted items
I like going through my belongings occasionally to see if there are any items I no longer need. I’ve recently discovered Responsible, an awesome company that enables you to sell your clothes for fast cash. I recently sent them a bunch of clothes I no longer wear, and was sent the money super quickly to put towards my holiday fund. It was perfect for me as I don’t have a lot of time to faff around selling clothes – all I had to do was fill out a really quick survey on my items. I then received a quick quote and accepted the offer. My cash was sent as soon as they received my clothes in the post. This meant I could trade in my clothes for adventures on my travels.
Find Additional Sources of Income
If you are struggling to know how to save for a holiday, or simply can’t save as much as you’d like to each month, it may well be worth exploring opportunities to earn additional income outside of your regular job. I do some freelance copywriting which serves as a great side hustle for funding my travels. Other ideas might be consulting, additional part-time work, or turning a hobby into a side hustle, like selling on Etsy. You can then use the earnings from these ventures for your holiday savings.
Saving for a holiday takes patience and discipline. Visualise your dream holiday, create a vision board, and be sure to celebrate key milestones in your holiday savings journey along the way. You might find that your circumstances change, too. You might gain a pay rise at work, which would enable you to save more going forward. Equally, if you face unexpected expenses, you may need to adjust your savings plan to allow for this change in financial situation. Being adaptable is key – you may need to extend your budget slightly or extend your timeline for saving. Ensure you strike the right balance between achieving a holiday of your dreams, and staying financially healthy.
Knowing how to save for a holiday is a journey that requires commitment and sacrifice, but I’m confident the memories you’ll make during your well-deserved getaway will be worth every penny and every effort! With a solid plan, disciplined saving, and a positive mindset, your dream holiday is within reach. Start today and begin dreaming of your next adventure.
Those are my tips on how to save for a holiday! How do you save for your travels? I’d love to hear your tips and thoughts in the comments below.
This article was created in partnership with RESPONSIBLE.