When everyday life gets mundane, the thought of an upcoming holiday can certainly help lift your mood. However, the constant worry about whether or not you can afford your trip certainly has the potential to ruin your holiday daydreaming. Despite this, a careful savings plan is all you need to ensure that you’ll have an enjoyable trip away without having to worry about a thing! Here are a few easy ways to save for your next holiday:
Create a travel budget
Like any savings plan, it must begin with a carefully thought out budget. Consider your current expenses, whether that be your home loan repayments, weekly grocery shop or your electricity bill, and work out how much you have left over after these have been paid. Work out how much you can afford to save each week after expenses, and commit to doing so each time pay day rolls around.
Set a savings goal
Now that you have a budget, you need to set a savings goal. How much is your holiday going to cost? Consider things like transport, accommodation, food and drinks, and spending money to come up with a rough estimate of how much your trip will cost. Don’t forget to include a buffer of around 10-20% in case of emergency, as you never know when unexpected expenses can pop up. Once you’ve figured out your savings goal, you can work towards reaching it! If you reach it sooner than expected, just keep saving as usual to give yourself a little extra to enjoy during your trip.
Open a holiday savings account
If you’re really serious about reaching your savings goal for the trip of a lifetime, consider opening a new savings account that you can regularly deposit savings into, but cannot take anything out of. Being unable to withdraw cash from this account will make it much easier for you to save.
Make lifestyle sacrifices
If you’re finding it difficult to save for your trip, perhaps it’s time to look at what you spend your money on. Take a week to write down every non-essential purchase you make (such as your daily coffee, dining at restaurants, or clothes shopping) and figure out where you can make sacrifices. For example, if you buy a coffee valued at $4.00 every morning before work, that adds up to $20 a week, $80 a month, and $960 a year that could go towards a holiday!