If the closest thing you’ve had to a holiday is sipping a pina colada at the local tiki bar, it may be time to plan your next adventure. And that doesn’t mean you need to give up your weekly pineapple pizza to save.
Follow these six saving hacks and you’ll be doing the hula in Hawaii in no time.
1. Create an itinerary.
Saving for a week in Bali is a little easier than saving for a road trip across America. So, knowing where you want to go and what you want to see will help you plan a budget
List the essential costs, such as airfares, accommodation, transport, visas and travel insurance. Then estimate the amount of spending money you’ll need per day of your trip – think alcohol, meals, souvenirs, entry fees to tourist attractions, and a jumbo Toblerone for the flight home.
Add these numbers together and you have your total budget and savings goal.
2. Send your money on holiday.
Treat your hard-earned cash to high interest destination. Investing money on a regular basis into a high interest savings account can offer a solid return on investment.
Do your research and make sure you find the best savings account for your goal. Online savings accounts that offer high variable interest rates usually provide the most bang for your buck.
Divide your savings goal into more manageable chunks, such as weekly or daily amounts. Use the ME Bank Savings Calculator to work out what these amounts might look like.
PRO TIP
Once you know how much you need to save and how often, make the whole process easier by setting up automatic transfers between your everyday transaction and online savings accounts . To avoid overdraw fees , make sure you match your automatic transfers with payday.
3. Ditch any excess baggage.
Say au revoir to any accounts with unwanted maintenance or ATM fees that dip into your hard-earned coin.
Debt consolidation – where you move multiple personal loans and credit card debts into a single line of debt – can also help you save on accounting fees. Talk to ME about your options.
4. Keep a travel diary.
Logging your savings will help keep you focused and motivated.
Check your savings progress regularly. Celebrating the small milestones along the way will keep you feeling motivated. And, hopefully, help you to keep your savings in check.
5. Have a plan B.
Left your dash to the savings finish line a bit late? If you’re ahead on your home loan repayments, you can draw down from your redraw facility. You essentially take the extra cash you’ve paid out of your loan and add it to your holiday slush fund. The minimum withdraw is $500 and it won’t cost you a thing.
You can also apply for a loan top-up. Basically, if your property has increased in value since its purchase, you can apply to top up the loan – and use the cash now.
Your last destination is small loans. While some credit cards and personal loans can attract higher interest rates and fees, pick the right one and you can have your dream holiday without too much financial strain once you’re back.
Use our personal loan calculator to work out what your repayments will look like and how quickly you’ll be able to pay back your debt. Or talk to ME about current personal loan interest rates and your best options.
Budgeting for your dream holiday doesn’t mean sleeping in a 12-bed dorm. With a few smart switches, some planning and a realistic goal, you can take off to a first-class experience.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.