This article aims to help you save money for a holiday. Be it in summer or winter, saving can be difficult – that’s why we’ve got all the information you need, to help you save up some cash.
After a tough few months of work, everyone deserves a holiday. It’s the ultimate way to relax, kick back and truly enjoy your time off. Be it in the hot blazing sun or in the beautiful white snow, everyone’s dream holiday is different. Some opt for beach holidays whilst others choose for a cultured experience, to be truly enriched. Whatever your ideal holiday is, the true challenge doesn’t come in picking where to go. Yes, the hardest part about planning a trip away is getting the funds to match.
Life won’t stop when you plan a holiday, there’s still bills to pay and mouths to feed. But, when you set your mind on going away, when you don’t it can be crushing. So, the only way is to save, save, save! A get away is all about planning, so why should saving for it be any different?
In this article, we’ll guide you on how to save your money and put aside some cash for your dream trip away. All it takes, is a little planning. We’ll be looking at long-term and short-term saving, and how you could get away, sooner than you think. This is a step-by-step guide on how to save for a holiday.
Your Holiday Saving Guide
- Picking your Destination
The most crucial step is deciding where you want to go away. But, it all comes down to budgeting and how much time you can get off work. Are you bringing the family? Or is it an adults only vacation? Maybe you’re going away as a group or just with one or two friends. Whatever the case, you need to pick a destination that matches not only your budget but can maximise your time away. There’s no point heading to Australia with only 1 week booked off (you’ll spend 2 of those days travelling and recovering from jet lag!). Likewise, expensive cities like Stockholm or Hong Kong aren’t designed for a 2-week getaway (unless you bring some serious spending money). So, plan around your budget and time off first. Our advice? If you’ve got 1 week off, head somewhere close by (ish). Somewhere within Europe or with a short flight time. Consider the time difference too. If you’re going to be jet lagged, it’s going to take off a day of your holiday, unless you power through.
Holiday destinations in Europe (like Greece and Italy), take roughly around 3 hours to fly to, with a 1-2-hour time difference. However, going further afield to places like South Africa or USA are flights between 7-11 hours, so you’ll lose a day travelling there and back. The key is to maximise your time away, for the ultimate trip. So, plan around your time and your budget.
- Planning your Payment
With a destination in mind, now comes the time to decide how you’re going to pay. Will it be in cash or card? Our advice is always a credit card. If anything goes wrong on your trip, credit cards are easier to refund than debit cards. So, if you’ve got one, try paying for your trip away on your card. However, if you’ve got bad credit, a credit card at a fair rate may not be available to you. If you can, pay by card – but if not, most travel agency holidays will be ATOL protected, so if anything, major goes wrong, and your trip is cancelled, you’ll be entitled to a refund.
Then comes the time to decide when you’re going away. Some seasons are more expensive to go away in than others. Think about when school holidays begin. Holidays are usually more expensive in a public holiday season. So, if you’re not bringing the kids, try going out of season. Peak season is between July and early September, so try and get away outside of those times. Similarly, December (around Christmas and New Year’s) is usually more expensive too. It’s all about planning and seeing if your budget can match when you want to go away.
The best deals are available early. The earlier you can book, you may find that there are better deals on flights and holidays. But, that means paying fast. There are some options available to you however. Those with credit cards, with decent rates, can pay it on their credit card and then work on saving to pay it off. Those with bad credit however, will have to get more creative. A personal loan can be used for a holiday, and the best loans for bad credit are guarantor loans. Below is a helpful guide to guarantor loans, for those with bad credit.
Guarantor Loan FAQ
What is a guarantor loan? – They are personal loans designed for people with bad credit, they have fair interest rates and are repayable over a long-term, making them more affordable.
How do they work? – All you need to do when applying, is provide a guarantor to support your application. They agree that should you miss a repayment on the loan, as a last resort, they’ll cover the payment for you.
Who can be a guarantor? – Anyone! A friend or family member, a landlord, or even a colleague.
What does a guarantor need? – Your guarantor would need to be between the ages of 18-78, have good credit and be a UK homeowner. It’s that easy.
With a personal loan, you can book your holiday more quickly, and pay it offer over the course of the loan. Loans can be between £1,000 – £15,000, so you can include spending money in your personal loan. Just be aware that paying with a loan, or credit card, means you’ll be paying back interest on your holiday. So, if that’s not your cup of tea, we’ll talk saving the old-fashioned way. Borrowing money or using a credit card is a quick solution for those in desperate need of a holiday. If you can wait and save, you’ll pay no interest.
- Setting your Budget
After you’ve picked your destination and chosen how to pay (be it long term or short term), now is the time to set a budget. You’ll need to consider a lot of different things in the price of your holiday. Ranging from travel insurance, spending money, accommodation and flights too. Luckily, all-inclusive holidays take away the hassle of budgeting – as some all-inclusive trips include food, drink, and accommodation. These however are usually more expensive. You’ll also need to consider potential car hiring or even entertainment nights. Holidays aren’t cheap, but you can plan around it. Pick a day where you have a relaxing day. You’ll just be sitting near a pool or on a beach, which is relatively cheap. Other costs will include clothing, excursions and holiday treats. Budgeting is vital so you’re not overspending and returning home with an empty bank account.
- Start Saving
The best way to save money is to treat it like a bill. Imagine you receive an imaginary repayment slip, saying you owe £200 a month. Well, paying this into a separate account is an excellent way to save. As soon as you’re paid, pay the ‘savings bill’ straight away. Before you know it, you’ll have saved up enough to spend on your trip and pay off your credit card holiday (or start to pay off your loan).
Remember where you keep your savings is important. Whilst keeping them in a jar may be ideal, it is not a great idea for 2 reasons. 1. The temptation of having cash there – if you need to ‘borrow’ some, and it never gets paid back and 2. In case your home is broken into – and all your money is stolen, that’s all your hard work gone. A separate savings account is the ideal way to save your money. You’ll be able to track it with online banking, to see how much you’ve saved.
If you’ve got a jar of old coins lying about, take them into your local bank branch. You can deposit coins in a dispenser directly into your account or take them to be paid in. The bank will be able to pay them directly into your account – even if it’s a huge jar of coppers! Surely enough in no time, you’ll see your savings grow. You’ll be able to pay for your holiday in stages or pay off your credit card or personal loan. It all depends on how desperate you are to get away. If you can hold off, you’ll save yourself money by not paying any interest on your trip away.
So, if you’re looking for a short-term fix, use your credit card or, for those with bad credit, a guarantor loan. If you’ve got the patience and are in it for the long haul, then try saving up and paying off stages of the holiday as you go. However you save, getting away for a holiday is a great way to relieve stress, relax and have a break from your hectic work life. If you haven’t thought about booking one, look into it.
Hugh Sallows is a Content Marketing Executive at Revive Digital. Writing content for magazines, blogs and websites, Hugh has an extensive history in writing. Hugh is currently researching and writing in Finance, specifically working on guarantor loans.