The holiday season is a blissful time of the year for most but it can be stressful if you are not financially stable. There are ways in which you can plan your finances ahead of time to help make next year’s holidays less stressful and a lot more fun!
Every little helps
This year has been quite stressful in many aspects so it may feel easier to overspend this December by buying that extra present for loved ones, or even a treat for yourself. But it’s worth considering if instead you could save that money and put it aside towards a holiday fund.
We’ve also listed some of the effective ways to make your next year’s upcoming well-deserved holiday a little easier on your finances.
1. Shop around at high-interest savings account
For people who don’t already have a high-interest savings account, opening one will certainly help you be a little more financial savvy! If your goal is to save for a big, longer-term goal for your next holiday, a high-interest account may do the trick.
Most saving accounts will have limitations on withdrawals, which will in the long run help you to save. They also have a higher interest rate than your typical saving account which is why these are good for longer-term goals.
2. Set up automated transfers to your savings account
Setting up automatic transfers into your account every month could help you make savings an easier thing to do. Just like you pay your bills automatically, you could be saving automatically, as well.
If you choose a saving amount that is easy to miss, then you won’t even feel the pinch in your bank account, but soon see those pennies adding up.
3. Increase your savings over time
Another way to help you save toward your next trip, is to increase your savings throughout the year. If you can afford an extra £25 per month to go into savings, that’s an additional £150 toward the balance of your trip over a 6 month period. Try increasing the amount you save every couple of months.
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4. Shop around at deals
There’s plenty of bargains up for grabs when it comes to cheaper holidays and January is usually a good time to start looking. Check out websites such as loveholidays, Jet2 and even GroupOn. They usually come with small deposits to secure your trip and offer monthly installments.
5. Start paying off that debt
Paying off debts such as credit card balances can help free up some cash towards your monthly expenditure, which you can then in turn put towards paying for a holiday. It will also feel great going away knowing that you’ve also managed to put your finances in a better position.
