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How to Save up for a Holiday

by James McGregor

Many people have regular holidays and some people go several times a year. However, holidays do cost money and therefore there are lots of people that find themselves in the situation of not being able to afford them. However, there might be a way to save up for a holiday and therefore a way to get one.

Calculate the Cost

To start with it is a good idea to work out the cost of the holiday that you want. There are lots of different holiday options and they vary a lot in price and so by looking at the type that you want and calculating all the costs including accommodation, food and travel you will be able to get an approximate figure as to how much it will cost you. It is worth trying to think of all of the costs, perhaps passports, visas, new luggage, new clothing, spending money etc so you can make sure that you have accounted for everything.

Get a Savings Account

Set up a savings account for putting the money that you are saving for the holiday in. This will mean that you will be able to keep the money separate and will not spend it by mistake. You will also be able to see it growing in amount, which can be fun. Try to find an account that pays a decent amount of interest. Although savings interest is very low at the moment, it will still make some difference if you find a higher rate and so it is worth a little bit of research.

Pay Some in Each Month

It is a good idea to pay some money into the account each month. Take a look at your household finances and work out how much you think you will be able to afford to pay. This will enable you to be able to set up a transfer each month, just after you get paid, so that the money is available for you to save. If you find that you struggle each month after doing this, then perhaps make the payment a bit smaller but if you are finding you have money left, make the payment bigger and also transfer money at the end of the month into the account as well. It may take a bit of tweaking to get the amount right. You may also find that you spend different amounts each month and so you may not be able to afford to save so much each month. You will get used to working it all out though and you should try your hardest to at least save something each month and you will be able to slowly increase your holiday funds.

Cut Down Spending Elsewhere

It could be a good idea to see if you can cut down some areas of spending. This should help you to be able to put more money into the holiday fund. Look carefully at what you regularly buy and work out whether you could cut back anywhere. When you go out shopping, think about every item you are about to buy and decide whether you want that item or if you would rather the money went in the holiday fund. Every time you deny yourself a purchase transfer that amount of money into the savings account. This will help your savings to grow even more quickly.

Earn More

It might be worth seeing if there are any ways that you can earn more money. There are different ways that you can try to do this. You might try for a pay rise or see if you can do some overtime or on call work. You might be able to change to a better paid job. It might be possible for you to squeeze in a second job too. This could mean something in evenings or weekends but perhaps something from home. You may be able to find a way to monetise your hobby, make money online or work from home. There are lots of opportunities available, it is just a case of having a think about what you would like to do and seeing if there is something available. Starting up your own business can be a way to earn a lot but it does take time and a lot of effort to do and you may not have the time and energy for it. You could try selling things that you own and no longer need or use and that will also raise some money for you.

Save a Bit Extra

Once you start building up the amount of money that you have saved, you will be able to start looking forward to the holiday. If it has taken a long time to save, then you may need to check prices, as there is a chance that they will have gone up and that you will need to save a little more. It could also be a good idea to put a bit extra by just in case things cost more than you had expected. If they do not, then you will have some money left to put towards saving for your next holiday!

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