In a cost of living crisis, every little helps. Discover The Wordrobe’s useful tips to save up for that elusive trip in the most effective possible way
You will not need reminding that the UK is in a somewhat feeble financial state currently. The cost-of-living crisis has hit wallets across the nation, and barely anyone has emerged unscathed from the unilateral rising of essential costs.
However, as proven by a figurative run on package holiday deals this past summer, our collective appetite for a good holiday has not wavered in the face of such difficult times. Instead, we have seen a nation resolute in its efforts to make that luxury getaway possible, by hook or by crook.
Of course, every individual financial situation is different, and there is no singular way to guarantee your way into an elegant international escape next year. However, there are some common threads that you can pull to improve your financial situation, and save up for that elusive trip in the most effective possible way. What are they?
Set a Budget
In order to save effectively, you first need to have a basic idea of what exactly it is you’re saving for. ‘A good holiday’ isn’t a good enough incentive to save, as there’s no goal to reach and no incentive to actually try. As such, you should set a ballpark budget for your holiday, perhaps based on some specific ideas for your ideal getaway.
Using average flight and accommodation costs for a given trip to a given destination, with around £100 per day on top for travel, food and spending money, you can set a ceiling for yourself to reach.
Create a Holiday Piggy Bank
Your next step should be to create some kind of ‘piggy bank’ specifically for your holiday spending. Some banks allow you to create ‘pots’ separate from your main account, but opening a separate account altogether could help you avail of higher interest rates.
This allows you to separate your holiday money away from longer-term savings or your emergency fund, and help to keep your wider financial situation organised while you save. It also makes it much easier for you to see the benefits of your savings efforts in real time!
There are myriad places you can go for specific tips on how to save your money, and the main suggestions of cheaper supermarkets and cutting out subscriptions needn’t be re-hashed here. How you manage the saving of that money, though, is something else entirely. Consider bolstering your saving efforts by setting up a regular direct debit, ensuring a pre-set amount leaves your current account each month. This way, you have a ticking-clock incentive to make at least your minimum savings goal for the month.
The introduction made mention of package holidays, and for good reason. An all-inclusive trip is often the shrewdest way to make the most of a given destination, and the right deal could see you reach holiday affordability sooner than you’d anticipated!