If you want to save money for a summer holiday with the family, but don’t know where to start, you’ve come to the right place. In today’s article I share 9 practical tips for saving money quickly for your next holiday in the UK.
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The summer holidays are just a few months away, and if you’re anything like me, you’ve already started thinking about what you’re going to do to keep the little ones entertained while they’re off school.
My last holiday was before the global pandemic, but I’m itching to board a flight with my family this year. With the costs of living continuously rising, I’ve definitely felt the pinch in my disposable income, and with the costs continuously rising, it’s becoming increasingly difficult to save up the money needed to pay for an international family holiday.
I always try not to focus on factors external to my control, and instead try to think, what is within my power to make what I want to achieve a reality? I came up with a few answers, and in today’s article I share 9 practical tips for saving money quickly for your next holiday in the UK.
1. Set a budget
I’m a firm believer in living within your means. So the first step is to determine how much you need to save for your summer holiday. Your budget needs to be realistic and achievable within the available time frame. For example, if you’re planning to go away in August, you have six months between now and the holiday to save the required amount.
When calculating the budget required, you need to factor in how much you’ll need for the trip essentials such as accommodation, food and activities. Knowing exactly how much you need to save will give you a clear idea of how much you must put away each month. So, for example, If you’ve done the maths and the total amount needed for the trip is £3,000, you know you need to put away £500 each month (£500 x6 = £3,000).
Can you realistically put away £500 each month between now and the trip? If the answer’s no, it’s time to consider alternative holidays. Maybe a UK staycation instead, or an international vacation may be more practical for this summer. Alternatively, you could decide to delay the summer holiday until next year to give yourself more time to save.
2. Create a holiday savings account
Once you know the budget requirements for your impending holiday, you next want to decide where you’ll save the money. This pot of cash is called a sinking fund. A sinking fund is a fund that is set up to save money for a specific future expense or goal. I wrote this blog post a while ago, which explains more about sinking funds and ideas of additional sinking funds you can consider setting up.
To make sure that you’re not tempted to spend your holiday savings on something else, consider opening a separate savings account specifically for your holiday. This way, your holiday savings will be separate from your everyday account and will be less likely to be spent on other things.
I personally love using Monzo for my sinking funds. Monzo is great because it allows you to create separate savings pots within your main account, which can be used to save money for different goals. You can set a target amount for each pot and track your progress towards that goal.
3. Cut back on non-essential expenses
Particularly in this economic climate, you must look at ways to reduce your expenses to free up money for your summer holiday. Look at your monthly expenses and see where you can cut back.
You’ll be surprised how much you can save by cutting back on non-essential expenses. For example, if you’re spending £100 a month on weekly takeaways, try and cut that back to fortnightly instead. Add the extra £50 in your holiday sinking fund.
Instead of getting the train to work daily, consider taking the bus instead. Yes, that might mean leaving your home earlier each day, but the sacrifice will be worth it when you’re enjoying your summer holiday with your family later in the year.
4. Use cashback websites
When shopping online, use cashback websites such as Quidco or TopCashback. These websites offer cashback on purchases made through their site so that you can save money on things like travel, accommodation, and activities. It feels like free money when you use these cashback sites because you don’t have to do anything to get that extra money.
I like leaving the money in my cashback accounts and letting it accrue. I only withdraw them when the amount is significant enough to do something with. You could leave the money there until your holiday, withdraw the accumulated money, and use it to top up your holiday savings pot.
5. Take advantage of deals and discounts
When booking your holiday, look for deals and discounts that are available. For example, many travel companies offer early bird discounts if you book your holiday well in advance. Also use price-comparison websites to shop around and make sure you’re getting the best deal. You can also take advantage of discounts on attractions and activities, such as 2-for-1 offers.
6. Second job/ side hustle/ pay rise
The reality is, there’s only so much reducing expenses you can do in order to free up extra money to put towards your summer holiday. Once you’ve reduced your expenses as much as possible, you then want to look at ways to increase your income.
Consider getting a part-time job. This could be anything from working in a local shop to freelancing online. The extra money you earn can be put towards your holiday savings. `you could also start a side hustle, what are you good at doing that you could potentially get paid for? Brainstorm ideas and get started turning one into an additional income stream.
If you don’t have the time to work an additional job, then look at how you can increase your income via promotion at work or switching employers altogether.
7. Sell unwanted items
If you have items lying around your home that you no longer need, consider selling them. You can use sites such as eBay or Facebook Marketplace to sell your items and make some extra money.
8. Avoid impulse purchases
When saving money for a holiday, avoiding impulse purchases is essential. Impulse purchases could be anything from buying a new pair of shoes to grabbing a takeaway coffee on your way to work. By avoiding these small purchases, you’ll be able to save more money each month. As tempting as impulse purchases can be, keeping your eyes on the prize is essential. These sacrifices will take you closer to your lovely summer holiday goal.
9. Take advantage of loyalty programs
Many airlines and hotels offer loyalty programs that can help you save money. By signing up for these programs and using them regularly, you can accumulate points that can be redeemed for future trips.
For example, American Express offers a popular airline loyalty program called the American Express Membership Rewards program. While it is not directly tied to a specific airline, it allows members to earn points on their spending and redeem them for flights and other rewards with a wide variety of airline partners.
With the American Express Membership Rewards program, members can earn points on their everyday spending, including on their American Express credit cards. Points can be redeemed for flights with airline partners such as British Airways, Virgin Atlantic, Emirates, and many others. Members can also transfer their points to hotel loyalty programs, car rental companies, and other partners.
In conclusion, saving money for a holiday is possible if you’re willing to make some changes to your spending habits. Whether you’re on a low income or just looking to save money, the tips in this blog post will help you reach your goal of a dream holiday.
By setting a budget, creating a holiday savings account, cutting back on non-essential expenses, taking advantage of deals and discounts, and avoiding impulse purchases, you’ll be able to save money quickly for your next holiday.
Remember, it’s important to be patient and disciplined in your saving efforts. It may take some time, but with hard work and determination, you’ll be on your way to your dream holiday in no time. Good luck!
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