Image courtesy of Alexander Horn

If you are planning a summer holiday, then you will need the funds to pay for it as well as money needed for any transport and spending while you are there. It is not always easy to know exactly how much money you will spend but you should be able to make an estimate. If you are self-catering then you are likely to spend a similar amount on food as you do normally, although you may eat out more often. If you are not, then you will be eating out a lot and should be able to work out how much each meal may cost. It is wise to make the prices higher than you think. You also need to add on any entry fees for activities that you might be doing as well as allowance for any gifts that you might buy for yourself or others. Hopefully you will then be able to add up all costs and come up with a figure. Obviously take away anything that you have already paid for.

Once you have this figure you then need to calculate how many months and weeks it is until your holiday. You then will be able to divide the figure by this number and you will know how much money you will need to put aside each week or month. This could be a figure that you can manage easily or one that you cannot. To start with think about where you will be putting the money when you save it. It could be good to put it in a savings account so that you can easily see it building up but it is away from the money that you have available to spend.

If you do not have enough spare money to afford what you need, then you could start by changing your holiday budget. You may be able to plan to eat out less, spend less on gifts and things like that. Rework your figures and see if you were pricing things too high etc. Still try to make sure that you will have more money than you need though as it can be very easy to overspend.

You may be able to cut your normal spending so that you have more money available to spend on holiday. Make sure that everything that you buy is really necessary and see whether you buy things that are cheaper, when you do buy things. You may be able to switch suppliers or brands to save money. You may also be able to earn more money. See if you can do some overtime or a second job. You may be able to sell things that you own, rent out a room or something like that so that you can get some extra income. If you increase income and reduce spending you should find that you will more easily be able to save up the money that you need to pay for your holiday. If you get all the family helping, you should find it will be a lot earlier.