The earlier you start saving for your next holiday, the better! If you follow these 6 smart ways to save for vacation, you’ll have more financial freedom when the next holiday season rolls around.
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1. Set a clear budget
The very first step towards planning your holiday savings is to research your next destination, as well as estimate costs for flights, accommodation, meals, activities, and other expenses. Break your budget into categories and include a buffer for unexpected costs. Knowing the total amount needed gives you a concrete savings goal.
2. Open a dedicated holiday savings account
Create a separate savings account specifically for your holiday funds. Look for an account with no monthly fees and a decent interest rate. Automate deposits from your primary account to make saving effortless. Out of sight, out of mind!
3. Try the 52-week savings challenge
This popular method can help you save systematically. Start by saving a small amount in the first week (e.g., R20) and increase it weekly. By the end of the year, you’ll have a significant sum to put toward your holiday.
4. Cut those hidden expenses
Conduct an audit of your monthly expenses to identify areas where you can cut back. Then, redirect those funds to your holiday savings. Consider:
- Cancelling unused subscriptions
- Brewing coffee at home instead of buying takeaway
- Cooking more meals instead of dining out
- Stick to a budget for grocery shopping
- Plan ahead and buy in bulk where possible
5. Sell items you don’t use anymore
Decluttering your home can be both therapeutic and profitable. Sell clothes, gadgets, or furniture you no longer need on online marketplaces such as Facebook or Yaga. Every little bit helps!
6. Find new channels for income
If your schedule allows, consider taking on a side hustle or freelance work. From tutoring and pet sitting to offering services like baking or photography, the options are endless. Dedicate this additional income to your holiday savings.
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