School holidays just ended, but before we can even blink, we’ll soon find ourselves back in the holiday spirit with Christmas being only 134 days away. If you’re planning a big holiday getaway, then now would be the best time to start saving (if you haven’t started already).
According to Suncorp’s recent research, the Australian’s average holiday spend is $4,500. So how can you save this much in such a small amount of time? Here are 7 steps to effectively save for your next big adventure:
Step 1: Set your goal and budget
Before the actual saving, it’s important to think about how much you’ll need for a comfortable holiday. You wouldn’t want to eat cup noodles when everybody else is munching on a big meal, now would you? So think about how much you’d want to spend to have an enjoyable holiday. To come up with the total amount, here are some of the costs to consider:
- Food and Beverage
- Travel insurance
- Entrance fees (to tourist spots if any)
Once you’ve determined your desired amount, you can then allocate a portion of your monthly budget to your holiday funds. Check out our full guide on budgeting here.
Step 2: Create a dedicated holiday savings account
Leaving your holiday funds in your general savings account makes spending tempting. As soon as you get paid — whether it’s weekly, fortnightly, or monthly, immediately transfer the allocated holiday budget to your holiday savings account. By having a separate savings account for your holiday funds, you get to avoid spending them. You can also easily see your progress, helping you determine how close you are to reaching your goal.
Step 3: Book in advance
You can save a lot of the holiday costs when you book in advance. The closer you get to your travel date, the more expensive may things become. Booking in advance allows you to enjoy special deals on airfare and accommodation. You might also want to check out the offers for international tours since they usually package airfare, accommodation, and meals in one. However, some travel tours may charge you more than they should, so proper research and due diligence could save you heaps of dollars too.
Step 4: Cut back on expenses
Your daily $4 takeaway coffee can cost up to $1,200 annually. Bringing coffee with you to work can help you save $760 a year. The same goes for takeaway lunches. Unless absolutely necessary, like going out for the occasional team lunch or having a lunch meeting, bringing lunch to work can help you save $2,880 annually as well.
Tip: transfer $4 every day to your holiday savings account to save the funds instead of spending it on other things.
Step 5: Make more money
And no, we don’t mean asking for a raise just so you can go on a holiday (but if that’s on the table, then totally go for it). With spring cleaning just right around the corner, you can make money selling the stuff you no longer need, such as old books, clothes, and toys. Why keep items that only clutter your home when you can use the extra money enjoying margaritas by the shore in Bali? Check out our guide on how to earn extra money while tidying up here.
If selling items is not your thing, then you might want to also consider doing a side hustle. Any income earned in this side hustle could be put towards your holiday funds. If you earn at least $50 from your side hustle each week, you get to save $2,600 throughout the year. And that’s not a bad number at all.
Step 6: Put loose change into a jar
If you prefer paying in cash instead of tapping and going, then having loose change may be a regular occurrence. Instead of feeding them to your couch or using them as weights in your bag, put your loose change and $5 bills into a jar. You can then deposit them to your holiday savings account at the end of each month. This can fast track your holiday funds by $600 annually.
Step 7: Take a Frollo challenge to maximise your savings
Save and feel like a winner through Frollo’s challenges on the iOS version. Some of these include the Grocery Challenge, which challenges you to cut back on your grocery spending, and Plastic vs Cash challenge, which challenges you to only withdraw a particular amount of cash each week to avoid overspending. Head on over to your Frollo app to take on one of these challenges today and start maximising your holiday savings.
The Bottom Line
Holidays are a great way to create memories with our loved ones. It’s usually the time we’re most relaxed, so experiencing new things with our family and friends become extra special. By following these 7 steps, you can make the most out of your holiday without any post-travel debts and stresses.
Got any holiday saving tips you’d like to share? We’d love to hear from you!