Plan ahead for summer
The festive party season is over but one way to help beat those winter blues is planning some summer sun to look forward to.
It’s never too late to start saving for a summer holiday, whether to help ease the worry of paying for it or to put away some spending money for those holiday treats. But where do you start? The thought of saving can be daunting, especially if you spent a lot over the Christmas period. However, we’re here to help you get on the right track – you’ll be on the beach in no time!
There’s a whole world of choice out there - from Cornwall to Croatia and Tenerife to Toronto; wherever you decide to go just make sure your aspirations match your pocket. You can do this by working out how much you can afford to put aside each month for your holiday when all of your other essential expenses such as bills and a mortgage or rent are taken care of.
Find a home for your savings, and save each month
"Can't wait till August!"
When you’re saving for something specific, rather than simply leaving it in your current account, it’s a good idea to set up a new savings account where you can see your cash build up.
If you’re setting your cash aside for a special purpose, having this separate account can help you avoid the temptation of dipping into your savings. A lot of providers will let you name your account too, so whether you go with ‘My well-deserved break’, ‘Summer Sun’ or ‘Costa Del Sol’ it’ll help to keep you focussed on your goal.
There are many different types of savings accounts on the market.
- For a short-term savings goal like a holiday, you might want to consider a regular savings account. This allows you to put away a fixed amount each month – which is a good habit to get into.
- You could set up a standing order so that money is taken from your bank account automatically each month (such as on pay day), so you won’t even notice it’s gone.
According to the Money Advice Service, saving this way could mean you’ll save more than you would do otherwise. What’s more, if you get into the habit of saving on a regular basis, you’ll be able to get ahead on saving for your next holiday, and maybe even stretch your budget to somewhere a little more exotic.
What about next year?...
If you have other longer-term savings goals, you want might want to look at fixed-rate accounts where you can lock your money away for a set period in return for a higher interest rate.
Additionally, don’t forget about tax-free savings, which allow you to save money without paying tax on the interest you earn, over and above your Personal Savings Allowance
A little can help a lot!
There are lots of little ways you can save money to add to your holiday savings.
For example, by setting aside £70 a month for a year, you could get a week’s all-inclusive holiday in Majorca for 2 people!† And it’s not as hard as you might think.
- Check your direct debits - are you using everything you’re paying for?
- Consider a cheaper TV package, cancelling unused gym memberships and switching utility providers.
- If you like eating out, consider dining discount memberships, checking out the fixed price menus or simply having a few more meals in. Little changes soon add up.
Pay for it in an affordable way
You don’t necessarily need to save your whole holiday balance before you book – many travel agents and tour operators allow you to pay a smaller deposit up front and then make the remaining payment closer to your holiday, especially if you’re booking early.
We hope these tips have been helpful and that you’re now excitedly planning for your next trip away. Bon voyage!