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How to save for a summer holiday
Summer is right around the corner and you may already be planning a holiday! Whether you're going to be exploring a new city, relaxing at the beach, doing something a little more adventurous or a combination of all these things – you’ll need holiday savings to go on that deserved getaway. Follow our top tips to make sure it is all smooth sailing.

1. Set a goal

Before starting to save for your holiday, you’ll need to plan and pick a destination. Want to go on a hiking holiday? Want to go skiing? Want to explore the culture of a new city? Or spend your time relaxing on the shores of a remote island? Knowing exactly what you’re saving towards will help you maintain savings discipline and keep you motivated.

2. Set a budget

You have your goal, but you need a financial plan to help your dream holiday become a reality. Start by pulling together all your expected expenses including flights, accommodation, holiday activities, eating out, etc. Once you have an idea of the potential cost of your holiday, you can break that down into a monthly savings target.

If you put your savings away in our Freedom Savings Account you’ll earn interest, which may help you reach your goals that little bit faster.

3. Automate your savings

Once you have a clear vision of what you need, to help make putting money away for your holiday easier you can automate your savings.

Set up standing orders from your current account to your savings accounts, using your goal name as a reference. Ideally, set the payments to leave your account on payday so you’re prioritising paying yourself first.

When you tap into the emotion behind your goals, you might find yourself spending less. If so, you can top up your savings with whatever’s left at the end of the month.

4. Check in on your savings

Check in regularly to see your progress. If you’ve got all your savings in one account, you could also use a budgeting app to track your progress.

In some instances, you might not be able to save as much money as anticipated – that's fine. When this happens, analyse your spending and readjust your budget where possible, or try placing a spending limit on an area where you think you could cut back.

5. Cut costs where you can

Saving doesn't mean you have to sacrifice everything, but look for areas where you could reduce your expenses. That could be eating in and cooking yourself, rather than eating out or getting takeaways. It could also be making your own coffee at home and analysing your subscriptions to see if you really need them. Everything you can save is another step closer to your holiday.

6. Staying motivated

Saving for your getaway is more of a long-distance race than a hundred metre sprint. You won’t always be able to stick to your savings plan, but this is okay. As long as you stay focused on your end goal and remember why you’re putting money away. It’ll be worth it when you reach the picturesque mountains or sandy beaches. Stay motivated and before you know it, you'll be at the airport and about to board that flight.

 

You can start saving today with the RCI Bank app and by checking out our range of products!

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