There’s no harm in dreaming big when it comes to travel plans. Perhaps you’ve got your sights set on hiking in New Zealand or backpacking round India? Maybe it’s a city break to Rome that you’re after, or sailing around the Caribbean with a cruise line such as Celebrity Cruises?
Whatever your dream destination, you can make it happen by saving up. Here are some tips on how it’s done.
Do your research
The first step towards making your dream a reality is doing some research. How much does this type of holiday typically cost? When are the cheapest flights or hotel rooms available? Check out travel forums for advice as well as price comparison sites and travel agents. You may discover insider tips on how to travel cheaper or a good value place to stay. Keep track of all the info you uncover for the next stage.
Set your target
Most of us work best with a target in mind. Now that you’ve done the research, it’s time to work out how much money you will need. Create a spread sheet that lists all expenses individually. This will include air travel, accommodation, insurance, airport transfers, food budget and all other expenses. Now add all of these up to produce a final amount. If it seems really high, don’t despair! Set up a savings account and move on to…
Setting a time scale
As well as a target, set yourself a time limit in which to achieve it. There’s no harm in being ambitious and setting yourself a challenge, but make sure it’s realistic. You’ll still need to eat while you save up! It’s about freeing up some of that disposable income and squirreling it away in a savings account.
Pennies to pounds
At this stage, you’ll need to work out how to free up some cash every month or earn a bit more. What’s your disposable income? Work this out and decide what percentage to save every month. If you’d like to free up more cash, go through last month’s statements and work out which luxuries you can sacrifice whilst you save.
Perhaps you could make an effort to reduce your phone bill, have fewer nights out or bike to work while you save. It could simply be a case of cutting out your daily coffee and banking £20 a week instead.
It may be slow going, but by keeping track of your spending you can hopefully keep the pennies flowing into that holiday account. By dreaming big and planning sensibly you could soon be on your way to that dream destination.
Image by Juergen Kurlvink, under the Creative Commons license.
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Personal Capital lets you see all of your accounts in one convenient place. Sign up now for free.Author bio: Eamonn Murray is a business lecturer who has sussed the perfect balance of working hard and relaxation. He particularly likes to unwind with cooking Asian food and a cold beer.
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