Financially Prepping For Summer Holidays

Summer holidays are right around the corner. The anticipation is building as many people look to get away from their usual routines and enjoy some sunshine. Unfortunately for some, the excitement of planning a holiday can often be overshadowed by financial uncertainty and stress.

If this rings true for you, managing your money effectively is crucial to ensure you can enjoy a stress-free and affordable summer holiday. Here are the best ways to go about it.

Setting a realistic budget

No holiday should be planned without an idea of your budget. Forking out for an unaffordable holiday may seem like a nice idea, but it could severely impact you financially in the long run if you can’t pay it off. That certainly won’t be helpful if you’re trying to build a healthy credit history!

Begin by deciding the amount you are willing to spend. Make sure to consider all aspects of the holiday including travel, accommodation, food, entertainment and activities. It’s also smart to account for some spontaneous expenses such as souvenirs and tips.

Here are our top tips for this:

• Estimate travel and accommodation costs: Research various options and compare prices. Look for early booking discounts or package deals that might be more cost-effective overall.
• Plan for daily expenses: Allocate a daily spending budget based on the average cost of things at your destination. You can find rough cost-per-day statistics on many online blogs and platforms.
• Factor in a contingency fund: Unexpected expenses can arise, so it’s worth including a buffer of around 10% of your total budget.

Saving strategies for holidays

Saving for a holiday requires discipline and some nifty saving tricks. Here are a few strategies to help accumulate the funds you need:

• Set up a dedicated savings account: Open a dedicated savings account or use a savings pot for your holiday fund. This can help to reduce the temptation of dipping into your money.
• Automate savings: Set up a standing order to transfer a fixed amount into your holiday savings account immediately after you receive your pay. It always helps to pay yourself first.
• Cut back on non-essentials: If necessary, identify areas where you can cut back on your outgoings. For example, reducing takeaways, subscription services or lunchtime spending can free up substantial amounts to put towards your holiday.
• Sell unwanted items: Boost your holiday savings by selling items you no longer need. Platforms like eBay and Gumtree make it easy to reach buyers and are great for making quick cash.

Preparing for financial emergencies

While we’re hoping you’ll have a seamless holiday experience, it’s always worth preparing for the worst.

Precautions such as travel insurance, taking multiple cards and cash, and researching local Funny Names tourist scams can help to keep you safe and  moonrisetoday secure while abroad. With all scenarios covered, you can sit back and relax the holiday to the best of your ability.