Do you think that you can’t have a big holiday next year because you don’t earn a big enough salary just yet? You’re wrong! The way to afford a big holiday, even if you don’t earn a packet, is to save.
Rather than miss out or put your holiday on your credit card, with a bit of forethought around savings, you can have your holiday cake and eat it too!
Here’s the plan:
1. Write up a budget
Make your holiday real by planning properly ahead of time – look at the costs for your holiday, any extras, as well as fees and taxes if you’re planning to holiday overseas. Get a clear picture of how much money you will need to kick-start your holiday and how much you will spend during that time. This exercise helps you to focus on your goals – now you know how much you need to save to get there – and to get a clear idea of exactly where you spend your money.
2. Start saving now
There’s no time like the present to start saving for that upcoming trip. And remember the golden rule of savings – save first. Treat your savings like a non-negotiable expense and pay it as you would your bills. Pay what you can afford to – a small, regular amount every month will soon add up to something substantial – but stay realistic. If you make your goal too hard or unattainable, you will give up.
3. Think of the best place to keep your savings
Under the mattress is never a good idea. To protect your hard-saved cash and grow it a bit as well, you could open an interest-bearing bank account which you then dedicate to savings. Always check the terms and conditions of any account and make sure you’re not spending your money on costly fees. Get an account that adds interest to your capital amount and watch your sum slowly and steadily grow with regular reviews.
Need more tips to turn your holiday dream into a reality? Read this.
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