Saving for a holiday might seem like an uphill battle at times, especially when you have other competing priorities and expenses. However, with a little planning and disciplined saving habits, you can make that dream holiday a reality. Here’s how to get started:
1. Set clear goals for your budget
Firstly, define your holiday goals. This means you should work out where you want to go, how long you’ll stay, and what activities you plan to indulge in. Once you have a clear idea of the holiday you want, create a realistic budget outlining estimated costs for transportation, accommodation, food, activities, and souvenirs. Having a concrete goal and a tailored budget will give you a roadmap to follow and keep you accountable.
2. Automate your savings
Set up a separate savings account specifically for your holiday fund and schedule automatic transfers each time you get paid. By automating your savings, you’ll remove the temptation to spend the money elsewhere and gradually build up your holiday fund without even thinking about it.
Tip: Use a high interest savings account to earn interest on your savings. Every little bit helps so why not make your money work for you!
Compare our savings and term deposit accounts. Not sure which option is right for you? Read our article ‘Term deposit vs savings account: what’s the difference?’
3. Cut back on non-essential expenses
Take a look at where you can cut back on non-essential expenses to free up more money for your holiday fund and help you reach your savings goal sooner. Review your monthly subscriptions, dining out habits, entertainment expenses, and impulse purchases. Consider making small sacrifices in a few of these areas to allocate more funds towards your savings.
Tip: Instead of eating or ordering out multiple times a week, challenge yourself to cook at home and pack lunches for work, then redirect the money saved towards your holiday fund.
4. Look for ways to boost your income
In today’s economy, finding ways to boost your income can significantly accelerate your savings. If you have the option to work and get paid for overtime, or the skillset for freelance opportunities then consider working a couple extra hours a week. Other ways to boost your savings could also include selling items you no longer need such as furniture, quality clothing or equipment.
5. Take advantage of sales and off-peak travel
Maximise your savings by taking advantage of sales. Whether it’s for flights or accommodation, waiting until key sale periods could save you hundreds of dollars!
Depending on your destination, you could also save by travelling a few weeks earlier or later to avoid peak periods of tourism that often comes with a higher expense. If your location isn’t seasonal or you can travel outside of school holidays your travel and accommodation can be much cheaper and it will likely be less crowded (win-win!).
This information provides general advice only. We do not provide advice based on any consideration of your personal objectives, needs or circumstances.
