Johannesburg– A well planned holiday can save on costs related accommodation bookings, flight deals, car rentals and even holiday packages.
Despite the numerous bargains that are offered, taking a vacation remains a pricey affair. The answer to this holiday dilemma lies in managing your money properly throughout the year, as a way of proactively saving towards certain goals, like a well deserved holiday.
“Save constantly. Every time you add money into your savings or investment account it brings you closer to your goal, “says Lezanne Human – CEO of FNB Savings, Investments and Fiduciary.
Here are a few basic pointers to consider when saving towards the holiday you deserve;
Put together a budget
Before deciding the amount to be set aside, you need to understand your financial situation. Draw up a comprehensive budget which highlights, what money flows into your account, but also jot down what essentials you need to pay for every month – like your bond and car instalments. Before adding the extras into your budget; like dinners and movies; it is important that you understand what you can save. Make your holiday savings part of your budget, instead of trying to save what is left over.
“Every month your salary comes in and your expenses are paid, yet we often don’t think about or budget to save” adds Human
Make your savings goal clear
It is important that you consider what you are saving towards. Decide on your holiday destination, how long you want to travel for, the date and the type of holiday you are after – luxury or budget. This will give you a better picture on how long you have to save and how much you need to save every month to get there.
If you know you can’t afford to go overseas next year, due to factors such as the exchange rates, don’t force it. Instead of getting yourself into debt to achieve your goals, increase your timelines or consider a local break.
Selecting the right savings or investment account
Savings and investment accounts will have different features to meet your specific needs, so make sure you take the time to find what works best for you. Saving for a goal, such as a holiday, typically allows you more freedom. Notice accounts are great as they generally allow you to add more money at anytime and you’re able to access your money after giving notice. With a 32 Day Flexi Notice, you can access your money after 32 days at no cost, or sooner at a cost, so that when a holiday special arises you can get your money in time.
Notice products also help you resist temptation as you need to place notice to get your money, creating discipline towards savings.
Longer term savings or investment accounts typically give you better interest rates, however, you need to ensure that you won’t need to access your money before your investment matures.
You can also opt to travel during off-peak seasons, this way you’re sure to find cheaper rates and enjoy crowd free holiday destinations. Look at also taking indirect flights – although the flight time is longer due to stop-over’s these flights tend to be cheaper.
“Another important consideration when saving for a holiday, is to allocate spending money while travelling and stick to the set amount per day,” concludes Human