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How to save for a holiday

How to save for a holiday

27 Jun, 2014 - 3 min read

If you’re anything like the average Australian, the FIFA World Cup has not only got you jumping on the couch and yelling at the TV, it’s probably also got you looking at your savings account to see if you can afford to join in the excitement overseas, rather than being a spectator.

According to a recent Roy Morgan survey, World Cup viewers were 62 percent more likely to name Mexico, Central and South America as a top holiday destination than the average Australian. They were also 70 percent more likely to choose Germany. And World Cup viewers just happen to make up a large chunk of Australia’s population.

“With 18 percent of Australians aged 14+ saying they watch the World Cup on TV, it’s a fair bet to say that many of us were glued to the TV set [during the event],” Norman Morris, Industry Communications Director of Roy Morgan Research, said.

If you happen to be one of these globe-trotting World Cup fans, you should bear in mind that these locations can be more expensive than your average trip – so priming your savings account is key.

Keep your costs as low as possible

There are numerous tricks you can take advantage of to keep the costs of your trip low. The earlier you purchase your ticket, the cheaper it can be, so try to settle on a date soon. If you’re going outside a peak time – such as the school holidays or the end of the year – all the better, because costs tend to be lower at those times.

While you’re at it, shop around. Look at the pricing options for airfares to your country of choice and pick the most affordable one. The same goes for accommodation at your destination. There are numerous websites that offer cheaper deals on hotels, so be sure you’ve thoroughly perused them all.

Make a budget

Once you’ve got some of the costs confirmed, sit down and hammer out the details. As with anything involving financial planning, sorting out a budget is a crucial step. You might also want to look at how much prices will be and how much it’ll set you back to do all the activities you have planned. Once this has been done, you can work out how much you’ll need to save each week or month.

Open an account

Once you’re ready to save money each month, you’ll want to have the right kind of account set up. A high interest savings account could be a big help in reaching that goal sooner. If your trip is a few years off, you could even try opening a term deposit so you can sit back and watch as your savings grow.

Disclaimer

This article is over two years old, last updated on June 27, 2014. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.