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Saving for your holiday
| DATE: 07 August 2012 |
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| BY: Nazley Omar |
Make your holiday happen, even on a barely there budget.
Saving, regardless of how small the amount, is a stepping stone to achieving your financial goals, says René Roux, Head of Sanlam Liquid. She suggests implementing a short-term savings plan, which can be realised in two years. “Put a picture up on your wall of the dream holiday you’re planning, it will help you remember the end goal,” she says.
Plan and budget
The first step is to determine when and where you’re going. There will always be unforeseen costs when on holiday, but it’s important to determine roughly how much you will need. Then work out how much you need to save each month to make it a reality.
Roux suggests documenting every cent you spend and analysing exactly where your money is going. Draw up a budget and steer clear of buying non-essential items. Stick to your budget!
Save
“For many South Africans, saving conjures up negative sentiments of self-deprivation but it actually allows you to accomplish your goals and it can become a part of your life, with minimal effort”, says Roux.
She suggests starting a savings account with between two and five percent interest. Saving R500 a month, with a reasonable interest rate, will see your savings grow to some R6 136 in one year and R33 907 in five years. “This shows you that you don’t have to put away a lot every month to save. Cutting out small items will help you grow your savings substantially.”
Budget travelling tips:
- Research the country and area you plan on visiting, best times to travel, accommodation options, flight specials and package deals.
- Prices are often hiked up during the seasonal rush period so avoid it if you can.
- Flights are generally cheaper eight weeks prior to departure so book as early as possible. Subscribe to the newsletters of your favourite airlines to be alerted of specials.
- Depending on your destination, bus, trains, taxis or hiring a car may be a better option, so it’s important to do your research. Investigate different car rental companies and avoid airport rentals, as they may be more expensive.
- Avoid paying for anything travel related with your credit card. If you have to do this, ensure that you pay it off immediately as paying interest on your flights or car rental will increase your costs significantly.
