Like most things in life, holidays do cost money. When you factor in flights, accommodation and your overseas spends; saving for your hard-earned break could start to overshadow the excitement and good vibes you should be feeling in the run up to your trip.
With a bit of know-how, saving money for your next holiday can be easy. From financial hacks to quick money-making ideas, we’ve some fantastic advice from a range of experts. Here are the top tips they gave us.
The Chartered Institute for Securities and Investment say…
The Chartered Institute for Securities and Investment is the leading professional body among securities, investment, wealth and financial planning professionals. They have over 45,000 members across 104 countries. Here, two of their members give us their advice.
Andrew Elson, of accredited financial planning firm Berry & Oak says…
Berry & Oak are a chartered financial planning firm, offering expert advice to help people lead the life they want and leave the worries behind.
Book early. Start by having an idea about where you want to go, what your perfect holiday looks like and set a budget. Book as far in advance as possible, as that way you get the best deals on hotels and flights and generally will only need to pay a deposit. The balance isn’t usually due until nearer your departure date, so you can start saving.
Use a separate savings account. Open an account that you use just you’re your holidays and that you don’t have a debit card on, so you can’t dip into. Set yourself an annual holiday budget and divide this by 12 to give you your monthly savings amount. Then set up a standing order, so that each month when you get paid, it automatically transfers the amount.
Jacqueline Lockie, Head of Financial Planning at the CISI says…
Jacqueline is Head of Financial Planning at the leading body for Certified Financial Planners, the CISI. You can find out more about what a financial planner could do for you here.
Don’t make bad investments. If you have managed to save, don’t be tempted to invest it in flavour of the month investments or the stock market. The stock market is for longer term investments as the value will go up and down, sometime significantly without warning.
Keep your bonuses and pay rises for your holiday. If you get a bonus or pay rise whilst saving, save that extra money because you’ll never miss it! And what’s better than putting it towards your next break?
Nicola from The Frugal Cottage Says…
Nicola blogs over at The Frugal Cottage is dedicated to helping people live the good life for less, her posts focus on things like budgeting, saving money and early retirement.
Do the ‘account tidy’. If you log onto online banking each day, then tidy away the pennies from your current account to the savings account. For example, if you had £223.14 in your current account, then transfer the £3.14 into savings. If you do this every day it quickly adds up!
Meal plan. Writing a meal plan for the week means that you know what you are eating for the upcoming days. You can then write a shopping list and only ever buy what you need.
Use cashback sites. If you are buying things online, make sure you are using these. They give you money back on the things you are buying anyway, simply by going to a cashback site first, which will then take you through to your normal website. You’ll earn a percentage of your shop back.
We Buy Books Say…
We Buy Books is a hassle-free way to turn unwanted items into cash. Online or using their app, you can trade in books, CDs, DVDs and video games you no longer want for money, simply by scanning a barcode and posting the items over for free.
Get selling unwanted items. This has multiple benefits. Not only will you have more cash to splash on meals out, mementos and unforgettable activities when you jet away, but you’ll also declutter your cupboards and shelves; coming home to a tidy and organised house.
Pick out the more valuable items. We know from experience that some books, CDs and videos are worth more than others. Books that tend to fetch the most cash include cookbooks and textbooks, so search through the kitchen cupboards or rummage through any learning materials you’re finished with.
Money Dashboard say…
Money Dashboard is a free personal finance app that helps you manage your money by showing you exactly where you spend it. By connecting your current, credit card and saving accounts it’ll automatically organise all your transactions, helping you to spend, save and borrow more efficiently.
Carefully asses where to cut back. Saving can be daunting if you can’t see where the extra money is going to come from. The best place to start is by looking at your household bills and expenses over the last three months so you can identify areas that you want to cut back on. Apps like ours arrange all this information in a way that makes this clear.
Keep track of your budgets. Once you have an idea of where you’re spending, create budgets and track your outgoings and show you how you’re progressing every month. Remember that no two months are the same, and that your financial position will often change so it’s important to update your budgets if they become too restrictive, or even too flexible.