Top tips for saving: Planning your holidays in advance
- Save early and pay with cash
- Know what you can afford
- Plan for spending money
- Consider your payment options
Whether you head to the Bahamas for the ultimate beach holiday with your family or head for the hills in the Scottish Highlands for a week’s worth of hiking with your friends, planning financially for your upcoming holiday in advance is imperative. No matter where you go, holidays are expensive and can eat away at your income if you don’t plan in advance. So, with that in mind, here are some tips that will help you save money and plan for your holidays ahead of time, reducing the financial burden of going away with family and friends.
Save early and pay with cash
The earlier you can save money for your holiday, the easier it makes budgeting. For instance, if you know that your upcoming 2-week holiday to Spain is going to cost £2,400 for flights, accommodation, and vehicle hire for your family, putting away £200 per month in a savings account for one year will help you accumulate all of the funds you need for your trip. Our advice is to plan the expenses associated with your trip as early as possible, before saving as much money as you can in advance. This means you don’t have to worry as much about the financial impact of going away with your loved ones.
Know what you can afford
While many of us dream of taking a 2-week vacation at a five-star resort in Mauritius, it’s not necessarily achievable. Even if you plan to pay for your holiday on a credit card or with an unsecured personal loan that enables you to spread the cost of the trip, you should plan a trip that you can afford. A holiday should not put you in financial hardship, so work out how much you can save and then look for destinations within your price range. As you will know, the destination isn’t nearly as important as the people you spend your time with!
Plan for spending money
A mistake that some people make when planning for their holidays in advance is that they forget to account for spending money. After all, there are so many costs to meet in advance, including flights, accommodation, transfers, and insurance. But the vast majority of people end up spending more than normal each day when they’re on holiday, meaning that you need to account for this additional expense while you’re away. So, when putting together a budget for your trip, be sure to account for spending money as well as the other core expenses already mentioned.
Consider your payment options
We’ve touched upon this already, but there are lots of different ways to pay for your holiday. As mentioned, a great option is to save the cash in advance, enabling you to pay off your balance ahead of time. Alternatively, you can put your holiday on a credit card, but you need to be mindful of the interest implications of doing so. At Koyo Loans, we provide unsecured personal loans that you can use to spread the cost of your vacation over a longer period of time. This can be a viable option for some people, if you can comfortably afford the repayments over the loan term, and means that you don’t need to worry about covering all costs in one go, if you have not managed to save enough to cover the overall costs.
Discover how much money you can potentially borrow to pay for your holiday and how long you will have to pay it back with our loan calculator.
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December, 22, 2022
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