Are you looking to get away from the normal stresses of life but don't have the finances to cater for it? Well, now is the right time to start saving for your next holiday. The earlier you start saving, the bigger your holiday will be. Here are 5 simple ways to save for a holiday:
Set a budget
This is the first and most important step when saving for a holiday and how much you can afford to put aside each month. Planning out what places you will go and the events you will attend will help you estimate the cost of travel, food and gifts. It will also help you decide exactly how much you want to spend during the holiday.
Create a list of all the items you will need, before and during the holiday. Consider overestimating the money so that you will have enough to spend during the entire period. Once you have an estimate of how much you need, create a saving plan.
Open a dedicated holiday savings account
One of the easiest and surest ways to save for a holiday is to open a dedicated holiday account. Create a holiday saving account and have part of your paycheck directly deposited solely for the holiday. If you don't get regular paychecks, set up an automatic transfer to the savings account. This way, whenever you receive money, part of it will be transferred into the holiday savings account. If possible, open an interest-bearing account and let your money grow as you wait for your trip. Do not get an ATM for your holiday savings accounts. The trips to the bank will help reduce any impulse withdrawals.
Cut back on your monthly expenses
Giving up one or two of your little luxuries is a great way to fill that holiday account. This can be your Friday night takeout, your daily latte or even something that you are better off without like cigarettes. You can also cut back your monthly food budget by shopping in bulk or buying from the farmers’ market. Shave a little off the top of your monthly expenses and in no time, you will notice that you have got some extra cash to put towards your holiday.
Look for ways to get extra money
Do you have things lying in your home that you no longer use? Or, are you crafty? You can sell all these things on various online platforms like Facebook, Marketplace, Etsy, eBay or Amazon to make a little extra. Put all the money you make from selling these things towards your holiday saving.
You can also use your car to make a little extra income. Your car can work for you and make extra money. There are some communities that will pay you to carpool to work. You can also make extra money as an Uber driver or rent out your car and have a check waiting for you when your holiday reaches. While this tip requires you to work a little harder, think about all the fun you will have on your stress-free holiday that is fully catered for.
Save on holiday costs
There are a few ways you can reduce the cost of your holiday, both before and during the vacation. Some of the ways to do that include;
Airline ticket: If you are travel.ing by plane, make sure to buy your airline ticket in advance, preferably two months before your intended departure date. This will help you avoid being struck with high fares.
Get travel insurance: Never travel abroad without a travel cover. If something goes wrong, the potential financial risks and hardships can be substantial. Make sure your travel insurance package is adequate for your needs.
Book in advance: If you are reserving things like package tours or train travel, it may be cheaper to book in advance rather than waiting to pay once you begin your holiday. Check out online travel forums to figure out the cheapest options.
Look for complimentary extras: When looking for accommodation, choose carefully. Find out if they offer complimentary shuttle services to and from the airport. Do they have in-house laundry or cooking facilities? Do they have breakfast included daily? All these details matter and can go a long way in helping you save for your holiday.
Every dollar you save now is a dollar more you can spend extravagantly on holiday. So start
implementing these simple tips to save some little extra for your holiday to avoid financial stress.