We all love to go on holidays, be it domestic or exotic locations. We see and meet people, which thrills us and develop a completely new experience altogether. While we all love to have that one dream Holiday, we fail to save enough for dream getaway and end up doing something usual.
Saving for a holiday trip can be a very tricky task but here are few tips on how to save for a holiday
- Stop Spending – A wise man has once said that that “money should be in your head, but never in your heart”. This is so true when you start to save. The shopping world is more lucrative than ever, so people tend to buy more than they actually need. If you continue to go for binge shopping, it will become very hard to save for anything. Hard thing to do, but so effective that when you are planning for one or two trip, you could actually end up have multiple and all within your pocket.
- Start Saving- Joe Biden the current Vice President of USA, has rightly quoted that “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” Well if you have Holiday in your Mind, you should have Holiday in your Budget as well. If you are planning a holiday, you should start saving for it today itself, else the idea will get pushed back due to your immediate priorities.
How to start saving money
Now, that you are all set to save and have your dream holiday. Let’s see what all saving and investment options you have for every type of Holiday.
First things First
- Figure out the number of time you would like to take breaks, it can be once in a year or twice or even in every quarter.
- Prepare a Bucket List of Destinations where you want to go or always wanted to go. (Leave no option on speculation, chart down every place!)
- Now select the Destination you would like to visit next. This can be tough, right? After all, they are all your favorites. To help; pick something alphabetically or ask you partner or family.
Plan a Budget
- Once you have the destination ready, finalize the time when you would like to take a break. This will depend on the place you are visiting, your holiday calendar and if it syncs with your family/friends schedule.
- Now plan a budget. Do your research and figure out a travel itinerary, it is not necessarily to be perfect but include all the activities that you want to have there and make a list with total expense.
- Count on your savings, browse through your account and figure out the savings that you have.
Grow your Savings
- Now that you know how much you have, plan on how to grow it more to reach above your budget (It’s always better to have Money in handy after all). Read Best way to Invest money short term.
- Figure out your risk appetite based on your current obligation like kid’s education, home loan, etc. Once you know how much risk you can take with your investments hop on the ride for investing short term.
While everything is in place, it’s better to monitor your expense and always remember that if you want something tomorrow, you have to let go something today. For instance, you can skip shopping for some time to shop in Milan, Italy may be! Think about it, you will figure out which is best for you.
Additional Tip: Now that you are ready with the plan for your dream holiday, you would like to be picture ready. Stay healthy and fresh every day; prepare a routine so that you invest some time in yourself every day. Invest in your money and health wisely. And trust us; you will be ready for any challenge! Happy Holidays!
Also read, Our Curated list of Financial Magazines for more Insights.