Saving for a holiday might seem like an uphill battle at times, especially when you have other competing priorities and expenses. However, with a little planning and disciplined saving habits, you can make that dream holiday a reality. Here’s how to get started:
1. Set clear goals for your budget
Firstly, define your holiday goals. This means you should work out where you want to go, how long you’ll stay, and what activities you plan to indulge in. Once you have a clear idea of the holiday you want, create a realistic budget outlining estimated costs for transportation, accommodation, food, activities, and souvenirs. Having a concrete goal and a tailored budget will give you a roadmap to follow and keep you accountable.
When planning your holiday, you should consider the features and benefits of travel insurance. Travel insurance for your trip can offer cover for minor things, like a delayed suitcase, or significant things, like an unexpected trip cancellation or an overseas medical emergency*
We partner with Allianz Australia to offer a range of general insurance products, including Travel Insurance. Find out more or get a quote today.
2. Automate your savings
Set up a separate savings account specifically for your holiday fund and schedule automatic transfers each time you get paid. By automating your savings, you’ll remove the temptation to spend the money elsewhere and gradually build up your holiday fund without even thinking about it.
Tip: Use a high interest savings account to earn interest on your savings. Every little bit helps so why not make your money work for you!
Compare our savings and term deposit accounts. Not sure which option is right for you? Read our article ‘Term deposit vs savings account: what’s the difference?’
3. Cut back on non-essential expenses
Take a look at where you can cut back on non-essential expenses to free up more money for your holiday fund and help you reach your savings goal sooner. Review your monthly subscriptions, dining out habits, entertainment expenses, and impulse purchases. Consider making small sacrifices in a few of these areas to allocate more funds towards your savings.
Tip: Instead of eating or ordering out multiple times a week, challenge yourself to cook at home and pack lunches for work, then redirect the money saved towards your holiday fund.
4. Look for ways to boost your income
In today’s economy, finding ways to boost your income can significantly accelerate your savings. If you have the option to work and get paid for overtime, or the skillset for freelance opportunities then consider working a couple extra hours a week. Other ways to boost your savings could also include selling items you no longer need such as furniture, quality clothing or equipment.
5. Take advantage of sales and off-peak travel
Maximise your savings by taking advantage of sales. Whether it’s for flights or accommodation, waiting until key sale periods could save you hundreds of dollars!
Depending on your destination, you could also save by travelling a few weeks earlier or later to avoid peak periods of tourism that often comes with a higher expense. If your location isn’t seasonal or you can travel outside of school holidays your travel and accommodation can be much cheaper and it will likely be less crowded (win-win!).
This information provides general advice only. We do not provide advice based on any consideration of your personal objectives, needs or circumstances.
*Terms, conditions, exclusions, limits and applicable sub-limits apply. Please refer to the Product Disclosure Statement for full details.
Auswide Bank Ltd ABN 40 087 652 060, Australian Financial Services Licence 239686 (Auswide Bank) arranges this insurance as agent for the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL No 234708. Travel insurance is issued and managed by AWP Australia Pty Ltd ABN 52 097 227 177 AFSL 245631, trading as Allianz Global Assistance (AGA), for the insurer Allianz. We do not provide any advice based on any consideration of your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision, please consider the relevant Product Disclosure Statement. The relevant Target Market Determination is available by calling 1300 138 831 and for Travel is available here. To help you make an informed decision about whether to use Auswide Bank to acquire an Allianz insurance product, you should read our Auswide Bank Financial Services Guide. If you purchase this insurance, we will receive a commission that is a percentage of the premium. Ask us for more details before we provide you with services.
