How to Save up for a Holiday

Many of us really like to take holidays and we main aim to take them regularly. The only problem is that we have to find the money to pay for them. For some people this is easy and they manage just fine, but for others it can be a problem and they will struggle to find the money that they need. Borrowing the money using a loan from somewhere like, could be an option for some people, but some people who have a poor credit record will not be able to do this. There will also be those that will not be able to do this because they already have loans and do not want to have more. Luckily, if you save up money, you will still be able to afford the holiday and saving up can actually be pretty easy.

How much to save
It is important to start off working out how much you will need to save up. You will need to think about what sort of holiday you want and then you will be able to calculate the cost of it. Remember to include everything so as well as the travel and accommodation, allow money for food, entertainment and perhaps new luggage and clothing. Also, any equipment you may need depending on what you are doing on holiday. Add up the cost of all of this and then you will know how much you will need to save. Of course, the costs may go up as you are not buying right away. This is not guaranteed but it could be worth assuming the cost will go up as if you save too much, it will be fine but if you do not have enough, it could mean that you will not be able to go on holiday.

How long to save
Once you know how much you need then you will need to work out how much you will need to put by each month. This will determine how long you will be saving for and when you will be going on holiday. This is because you will be limited in how much you will be able to afford to save each month. You will therefore need to work out how much you will be able to afford and that will allow you to then calculate how long it will take you to save up the amount of money that you need.

How to save
It is a good idea to set up a savings account specifically for saving up for your holiday. This will ensure that you remember what the money is for and make sure that you do not spend it on other things. Also, to set up a direct debit so that money is automatically transferred into the account each month, just after you get paid, will ensure that you do not forget to save money. However, you will need to make sure that you can afford to save that amount each month. Therefore, carefully calculating how much money you can afford to save will be a sensible idea as you will then ensure you have enough left to pay for everything else that you need as well.

This means that you need to start assessing your financial situation. You need to know exactly what bills you have to pay and how much they will cost as well as how much you get paid. Then you can calculate how much you have left for luxury spending and saving. It is very possible that you will need to make some changes in order to afford to save that much money each month. This might be easier than you think though.

How to free up money to save
There are many different things that you can do which might help you to spend less money and therefore have more available for saving.

  • Compare all prices and buy the cheapest or best value for money
  • Switch to cheaper suppliers and insurers
  • Buy less things
  • Shop at a cheaper supermarket
  • Buy toiletries from discount drugstores rather than supermarkets
  • Eat in rather than eating out
  • Cut down on take-out food (including coffee, water and sandwiches)
  • Reduce ready meals
  • Have less nights out
  • Drink less alcohol and soft drinks
  • Drive less
  • Spend less on gifts
  • Give less to charity
  • Treat yourself less
  • Spend less on entertainment
  • Reduce TV, phone and broadband package
  • Turn your heating down
  • Spend less on your hobbies

These are just a few suggestions of things that you can do that will save money. It can be wise to take a look at everything that you spend money on and calculate how much you are spending so that you can decide on where you would like to cut down. There may be some areas that you are not prepared to cut down in, but there will hopefully be some areas that you are happy to. It is good to keep focussing on the holiday and thinking about what sacrifices you are prepared to make so that you can afford that holiday. You may start by feeling that it is too difficult, but if you really want the holiday then hopefully you will feel motivated enough to give up some things and make some lifestyle changes so that you can afford it.