Travel hasn’t been easy in 2020. The ski trips and summer getaways were put on hold or cancelled altogether while countries around the world went into lockdown. This year has also seen a lot of us struggle with our finances, thanks to furloughing and job uncertainty.
But with recent reports about new Covid-19 vaccines reaching the approval stage, there’s an element of optimism about 2021. These vaccines have given us the opportunity to begin planning for the future again. One of those things we can look ahead to is travel.
So how do we budget for our holiday next year? Where to begin after the year we’ve had? Here are some money-saving hacks to help you book in a break.
Look at your spending
A key jumping-off point is to assess what you’re doing with your money at the moment. Take a look at your bank statements for the last six months and see where your incomings and outgoings are.
Highlight your bills and make a note of how much these come to. Is it possible to shop around? Are you on the best value energy plan?
Likewise, how much is your car insurance? What’s your monthly spend on your mobile contract? Look for opportunities to get better deals on these. The savings you make could go towards the holiday fund.
Set up a savings account
On the subject of savings, do you have a savings account? It’s worth having a separate account set aside for any money you’d like to have for your holiday. Whether you put £50 or £200 in this account each month, you’ll soon find that the money adds up. Any money you save on switching your bills can go into this account.
If you’re setting up a new one, shop around. There are different deals available so see if you can get a great rate.
Look out for top deals
Look for holiday deals. There are plenty of discounted travel options available at the moment and you’re likely to snap up a bargain if you do some research.
There are some holidays that are always good value for money too. For instance, package trips and dedicated tours are usually a full holiday in a bundle, so you’re more likely to make a saving. So, whether you’re thinking of a winter holiday to Iceland or you’re looking into escorted tours of Sicily, take a look at what deals are available now and keep an eye on the prices for flights and other transport.
Create a budget
Now you have an idea of your spending habits and a savings account in place, along with an idea of how much your holiday might cost, you have everything you need to create a budget. Have a target date for your holiday and plan out how much you’ll have coming into and out of your bank, and what savings you hope to put away each month.
As the months go on, you’ll find that the savings add up and your holiday fund grows. Be realistic, though. Remember to factor in birthdays and unexpected expenses. By doing this, you can have a clear amount set aside for your 2021 trip away.