Planning a vacation is a great opportunity to take a break from the hustle and bustle of everyday life and unwind for a few glorious days. We know what you’re thinking! Holidays can be very expensive, especially if you’re living paycheck to paycheck. But fear not! There are some fantastic money-saving tips you can embrace to save up for your next holiday.
16 tips to save for a holiday
1. Make a holiday budget
The first step is preparing a budget for your summer holiday. Decide how much money you will need to save and consider all possible expenses right from your flight ticket, to buying new holiday clothes, potential car hire (and car excess insurance) and toiletries.
- Calculate how much you can save a month without compromising on your necessities like rent, food, and utility bills.
- Whatever you have left, put it straight into a holiday pot.
- Make sure you avoid any excess and unnecessary expenses during this time. Remember- even a parking fine can throw you off your tight budget!
2. Save automatically
Set up an automatic transfer from your paycheck or checking account to a dedicated savings account. This way, every month, a fixed amount of money will automatically be transferred to your holiday savings account, and you won’t have to worry about saving enough.
3. Compare before booking flights
When it comes to booking flights, it’s always a good idea to shop around for the best deals. Check out budget airlines like Ryanair or EasyJet, as they often offer affordable flights to popular holiday destinations. By comparing prices and promotions, you can potentially save a significant amount of money on your travel expenses.
Additionally, consider departing from different airports, even if they are a bit further away from your location. Sometimes, flying from a more distant airport can be cheaper, especially when the savings on the flight outweigh the additional travel costs to get there. It’s worth exploring this option to see if you can snag a better deal and keep more money in your pocket for your holiday
4. Consider different accommodation
Consider accommodation alternatives: Instead of traditional hotels, explore other accommodation options such as vacation rentals, hostels, or house-swapping.
These alternatives can often be more budget-friendly and free up extra travel money.
5. Get another income source
Explore ways to boost your income to accelerate your savings. Consider taking on a side gig, freelancing, or selling unwanted items. The additional income can be specifically allocated towards your holiday fund.
Bonus tip: If you receive unexpected money, such as a work bonus, tax refund, or monetary gifts, resist the urge to splurge immediately. Instead, save a portion or all of it towards your holiday savings. These windfalls can give your savings a significant boost.
6. Pay your debts early
If you are looking to save money for a holiday then first try to pay off all your debts like a credit card bill, line of credit, loan, etc., early. By paying off your debts early you can save on interest as most debts usually come up with high interest rates.
You can put the extra saved money in your holiday savings and use it to either book your tickets, buy clothes, etc.
7. Get packaged deals
If you find saving money difficult, you could consider getting a packaged holiday tour instead of booking everything yourself.
Doing your own bookings seems economical at first, but packaged tours can save a lot of your time and money. The travel companies take care of everything from flights to your daily commutes. Sometimes they even offer good discounts on these packages.
8. Clear cookies when searching for flights
Clear cookies from your browsing history before you look for flights. Some travel websites keep track of what flights you’re looking at and increase their prices when you look for them again.
Clearing your cookies will help you avoid that.
9. Look out for offers
Keep an eye out for enticing offers! By subscribing to email newsletters from your preferred package holiday providers, airlines, and hotels, you’ll gain access to exclusive discounts, special offers, and updates on last-minute cancellations available at discounted rates. It’s a great way to stay in the loop and grab amazing deals for your holiday getaway.
10. Book your holiday at the right time
The right time to book your holiday depends on how flexible you are with your dates. If you are open to changing your holiday time if needed, book last minute.
Travel companies often offer the last few seats of their holiday tours at a discounted price. But if you have pre-decided dates that you don’t want to change, it’s better to book well in advance to get the best deals.
11. Explore affordable travel destinations
A memorable trip doesn’t have to be expensive. If you want to travel internationally, look for countries where the pound is strong. Travelling to countries like Indonesia, Vietnam, and Cambodia is pretty inexpensive and you can have some great experiences there. You can also explore beautiful destinations in Europe that are not very touristy.
You can get the latest information about the COVID restrictions, entry requirements, and travel warnings of various countries on the Foreign Travel Advice page run by the Government.
12. Spend less time dining out
Eating at restaurants can quickly add up. If you’re saving for a holiday, consider cooking more meals at home and packing your lunch for work.
13. Save money on food and transport on holiday
Do some research on the food and commuting costs of your travel destinations. Look for local restaurants and cafes that offer tasty local cuisine at affordable rates.
If the local food looks expensive, consider cooking your own meals instead, at least for a few days. Use local public transport while sightseeing instead of spending on car rentals every day. It will save you a lot of holiday money and it’ll be a fun way to explore the new place!
14. Book a budget accommodation
If you are visiting a place for sightseeing and exploring the local culture, you probably don’t need to stay at a luxurious hotel. Consider living at hostels, homestays, and affordable hotels instead.
If you have any friends or family living at the place you’re visiting, ask them if you can spend a night or two at their place. Hotels can cost a lot, so this is a great tip for doing a budget holiday.
15. Travel off-season
This is a great way for those looking for how to save money when booking a holiday. Prices of hotels and flights can be very affordable during off-seasons.
You may not get to visit the place in its best weather, but hey! You can still have a wonderful trip because the tourist spots will not be too crowded. You can have fun while exploring the local cuisine, interacting with locals, and experiencing a unique season.
16. Keep your money in a separate bank account
It’s better to save your travel savings in a separate bank account. You can easily keep track of your holiday balance while you save. You can make your travel-related payments from the same account for convenience. Consider choosing easy-access savings accounts to make sure that you can get your savings whenever needed.
Follow these tips and soon you’ll be on the way to your dream holiday destination! Saving for your holiday will teach you the basics of finance and you’ll be able to enjoy your trip even more.
How much money should I take on holiday?
Generally, £100-150 per day should be enough to cover your day-to-day expenses.
Do some research online and find out the amount required for daily expenses in the place you’re travelling to. Find out the cost of local food, bottled water, alcohol, local transport, clothes, and other necessities. This will help you understand whether you need extra money or not.
Wrapping up
Though holidays have become a bit expensive, you can save up enough and give yourself the break that you deserve. Start by deciding how much you need to save for your trip and divide it by the number of months left till your holiday to get your monthly goal.
Follow the simple and effective saving for holiday tips mentioned above to stay consistently disciplined about your goal. Just have patience for a few months and soon you’ll be relaxing at your dream destination!
FAQs
How can I save ₤1500 in 3 months for a holiday?
Saving ₤1500 in 3 months is challenging, but it’s possible. Break down your target and focus on saving ₤500 a month. Review your monthly expenses and see if you can cut down any major expenses for three months.
What is the 30-day rule?
The 30-day rule is a trick used to avoid impulse purchases. The rule says that you have to wait for 30 days before making any (non-essential) purchase online. This gives you enough time to reconsider your purchase and makes you think about whether you really need it or not.
How much should I spend on a holiday every year?
Travelling is fulfilling, but it can be pretty expensive. It’s advised that you should not spend more than 5-10% of your income every year on a trip.
Disclaimer: We are not providing financial advice. These are just tips for informational purposes. Also, we are not affiliated to any of the external parties linked, they are provided for reference only.
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