This post is brought to you by Olivia Lo Schiavo. Olivia is the founder of Pretty Penny, an amazing blog that teaches women how to manage their money without too much stress or sacrifice. She is also the author of an upcoming book aptly called “Pretty Penny- a modern girl’s guide to money”. Make sure to check out her blog today!
Holidays! Who doesn’t love them! But they can be costly. So how do you manage going on holiday – staying where you want to stay, being able to take advantage of the special activities on offer – extreme sports, shopping, massages, having nice dinners out, and actually relaxing –without running out of cash?
The secret is in planning, being realistic, and staying focused on your goal.
1. Make a good plan
Where do you want to go? For how long? What kind of holiday will you be having – will it be budget, luxury, or somewhere in between? You’ll want to make a plan for flights, accommodation, food, and activities. And don’t forget all of the costs that you need to pay back home, like rent and pet-sitting.
Everyone loves spending time planning their holiday, right? So why not include the dollar values in your planning to get a good idea of what it’s actually going to cost you. And then add 10%! “I wish I hadn’t saved so much money for my holiday”, said no one ever.
2. Be realistic
Once you’ve got a plan of how much money you are going to need, sit down and work out how you are going to get it. Will you be able to redirect some of your savings into a holiday fund? Will that be enough?
Maybe you can think of some other ways to bump up the balance of the holiday fund.This could mean taking on an extra shift at work if that’s available to you, clearing out your wardrobe and selling the remains on eBay, or even something as simple as deciding to stay in on Saturday nights until you’ve reached your savings goal.
3. Stay focused
Your holiday might be six months down the track or longer. How do you stay focused on your savings goal for such a long time? Thankfully, holidays are such exciting things that once you have decided on one it will probably stay at the forefront of your mind. If you need help staying focused to save towards your holiday, you can try a few things.
Firstly, keep reminders of your upcoming holiday everywhere. Use your computer wallpaper, your bathroom mirror, and even stick a little picture of your destination in your wallet as a reminder to stay away from that new pair of boots.
Secondly, make sure you automate all of your saving so that it goes before you even have a chance to spend it. Likewise, send the money you make from that extra shift straight to your holiday account.
Lastly, keep checking in with your savings to make sure you are getting closer to your goal. You can make this part of your travel planning routine. When you are looking for accommodation, double check your savings. When you are checking out flights, check out your bank balance. When you are updating your itinerary, update your holiday budget, too.
If you follow these three steps, then by the time your departure date arrives you should be feeling excited about the wonderful time you are about to have. Not stressed out about how on earth you are going to afford it all!