Unless your monthly salary is very large that it’s easy to produce your travel fund, it may take time to plan and save for your dream holiday. But there’s no need to panic even if your holiday is approaching because there are some things you can do to save money for a holiday fast.
Consider these easy ways to save to help you reach your required budget faster.
Look at the big picture
The first thing you need to do when saving for a holiday is to get a clear picture of your finances – your monthly income, expenses and balance.
Each person has a different idea of a dream holiday: some want a luxurious cruise, others prefer a backpacking adventure – none of them cost exactly the same. Figure out how much money you’ll need by determining what exactly you want your holiday to be like.
Once you know these, write your projected budget to determine how much you’ll need.
Creating a budget plan will help you understand how likely you are to reach a goal and what savings strategy you can execute.
Hustle and earn more
Your income has a big influence on turning your dream holiday into reality, so you need to make sure that you receive compensation regularly and, if possible, generate extra cash.
Look at your current job situation. If you’re already due for a salary increase, you may consider preparing your case and initiating the conversation with the management.
Likewise, you may take up side hustles for extra income.
Set up a holiday account
Once the budget is in place, you can start saving for your holiday by funneling some of your extra money directly to a separate bank account that is meant specifically for your holiday or splurging.
Don’t forget to top up your holiday fund account each month, and the target amount for that fund should be clearly identified because this will serve as your savings goal.
You may consider automatically transferring a portion of your income to your holiday savings account.
Plan to travel smart
Saving money for your holiday is necessary, but saving money on travel is just as important.
Now that you’ve identified a destination and the target budget, consider trimming pricey areas in your travel plans. You can do this by identifying unnecessarily expensive elements, such as hotel accommodations, and searching for good deals.
Saving on airfare is also possible by purchasing discounted fares or choosing smaller airlines. Likewise, you may drop expensive rental cars from your plans and simply take public transport with locals.
Do your research and take note of travel tips that will help you keep expenses small, such as off-peak season or hours and when you can get free or discounted passes.
By doing a thorough research, the amount you need to save for may decrease and you will be able to reach you savings goal faster.
Likewise, check with your credit provider if they have special discounts, deals or privileges you can access by using the credit card they provided. Just make sure to pay your bill in full and on time to avoid blowing up your debt with interest rates and surcharges.
Countless people around the world have travelled on a shoestring budget, and you can definitely do the same with the right attitude and discipline.
Explore nestegg for more ideas on how to save money as a teenager for specific purposes.
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About the author
Join The Nest Egg community
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
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