Sort out your holiday fund
If you’re thinking about going on holiday in the summer, it wouldn’t be so bad to start saving now.
The peak holiday season may be months away, but in addition to the cost of travel there are also other expenses to consider, such as accommodation.
Planning and putting money aside will help ease your stress levels during the busy holiday season, make it easier to stay on budget when you shop, and can also help you avoid credit card debt.
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Track flight prices
If you’re not ready to book a trip, you can use Google Flights to track prices based on specific flights, routes and dates.
“I use Google Flights to track the prices of flights that I’m looking to go on,” says Kia Commodore, personal finance creator and founder of Pennies To Pounds. “You simply set up a price tracker and you’ll be notified any time the cost of the flight changes so you’re able to secure the best deal.”
James Jones, head of consumer affairs at Experian, adds: “Starting to organise your trip well in advance will allow you to shop around to find the best deals, whether that’s flights, accommodation or even restaurant bookings.
“You can also save a lot of money by getting a package deal, which will normally include your accommodation and travel.”
Set up a dedicated savings pot
Planning in advance can help to ease the financial burden down the line.
“With costs continuing to rise, it has become more difficult than ever before for people to save money. However putting a sum away little and often can seem less daunting and more achievable,” says James.
“There are a few habits you can start to adopt now that will help you save in a way that won’t seem like you’re making huge sacrifices.”
And setting up a dedicated holiday fund can be a great first step to your saving journey.
“This will not only help you keep your holiday savings separate from your everyday expenses, it will also deter you from dipping into it before you go off on your holiday,” says James.
Set aside part of your income automatically
Building discipline with saving requires you to find a system that works for you. Rajan Lakhani, personal finance expert at smart money app Plum, says: “Many people find that using automation makes everything a lot easier. If you use an app like Plum, it will even work out how much you should be able to afford to save using AI, and then stashes the money in a pot for you each week where it could earn interest.”
Make use of loyalty points
Do you have a credit or loyalty card?
Kia Commodore explains: “If you have a credit card or loyalty card, you may have been accumulating points every time you’ve shopped.
“Quite often, these points can be converted to be used as discounts on flights and accommodation, so it’s worth checking how much you may have.”