How to save for your next holiday

Although the idea of travelling to exotic locations feels far off in the distant future, the upside of being housebound in the cold winter is that we have more time to research, plan and start saving for our future travels. Even though hopping on a plane right now is off the cards, we sure can escape into Pinterest travel. Here’s what you need to know to start saving for your next holiday right now.

Create a travel vision board

If you’re anything like me, visual motivation is the key to success. Spend some time allowing your imagination to run wild and build a vision board that you can use as a screensaver to keep you on track towards your travel savings target.

Work out your budget

Now that you’ve got a crystal clear idea of where you want to go on your trip, whether you’re a beach and mojito kind of person or trekking in a jungle is more of your thing, it’s time to work out what you need to spend, and what you want to spend. If you’re building a travel-related financial goal from the ground up, it’s important to separate the needs and the wants. If there are activities that you absolutely want to do (for example, a safari or diving) then add these to your basic expenses.

With accommodation and travel, the variety is huge and you can find options for almost any budget, so start with the basic expense that you will need to pay for: flights, travel, vaccinations, accommodation and food. When it comes to travel, accommodation and food, do your research on the location you’re planning to visit. Find out the average costs and figure out whether you want to travel on the cheap, splash out or go somewhere in the middle of the two. Remember to look into the varying costs of eating out and drinking, as this can hugely affect your budget!

Decide when you want to travel

Once you have an idea of what you want to spend on the trip, it’s time to figure out how to hit the amount of money you need by the time you want to travel. Of course, to figure out your savings plan, you need to know how long you have to save towards your trip. Work out how many months you have, and divide the target budget by the number of months. There you have your monthly savings target. So how do you hit it?

Build a savings plan

Finally, it’s time to get to work on the plan. Now you have a clear figure that you need to be putting into your piggy bank each month, the key is optimising your finances so that you can hit that target month on month. 

Start off by spring cleaning your bank account and plugging any money leaks, which can save you hundreds of pounds in a short space of time. Do a mini audit of your bank account to find any areas where you are overspending, such as your phone bill or Sky TV package, and get ready to negotiate! 

If you’ve already streamlined your spending, think about a side hustle. Are there any skills you have which you’re not using? Do you have clutter you can turn into cash? Bringing in another stream of income can significantly boost your savings capacity and help accelerate your journey towards your financial goal. 

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