5 Tips for Saving for your Next Family HolidayWith a little planning and budgeting, your dream destination is closer than you think

With a little planning and budgeting, your dream destination is closer than you think

Is your family longing for a break? A holiday is the perfect opportunity for you all to take a break from work and school, get away from it all, and spend quality time with each other. Whether your family craves action and adventure, or takes a more laid-back approach to travel, it’s important to plan well in advance to get the most out of the experience.

Planning the ‘where’ and the ‘when’ of your next getaway is probably the most enjoyable part, but working out how you’re going to pay for it is critical. After all, you don’t want to go into debt for a holiday. We’ve put together 5 practical tips on how you can plan for and save toward a dream family holiday.

  1. Choose a destination in advance
  2. Picking a destination and committing to a time period helps your savings goal become more tangible. The internet really has revolutionised the way people plan their travels, and a little online research will give you a good idea of how much you’ll need to set aside for a stress-free break.

    Having trouble picking a destination? The reality is some destinations will be more expensive than others. So, set your maximum budget first by deciding:

    • The limit of what you want to spend
    • How long you want to be away for

    Once you know what you want to spend, you can narrow down the list of destinations to those within your budget.

  3. Consider the costs
  4. Flights and accommodation will be your big ticket expenses, but you also need to keep in mind things such as:

    • Meals
    • Excursions
    • Shopping
    • Transport/Car Rental
    • Souvenirs/Gifts

    Budgeting for these expenses helps avoid any unforeseen surprises. It’s also a good idea to budget for extras that pop up during your trip, like going out to eat more than often than you initially planned for.

  5. Figure out how much you need to set aside monthly
  6. Once you’ve determined how much you need to save, you need to calculate how much you’ll need to put aside each month and how long it will take you to save the full amount. Our free online savings calculator will help you calculate what this monthly amount should be.

  7. Use a budgeting planner
  8. If you’re breaking out the spreadsheets for budgeting, it can become more complicated to keep track of your income, expenditure, and financial goals. An accessible, easy-to-use budgeting planner can make all the difference when managing your money.

    22Seven is a free budgeting app you can download to keep track of how you spend your money. You can also set specific goals you want to save for, like family travel. Access the 22Seven app here. Use our online budgeting calculator to get an insight into the breakdown and earn some awesome rewards while you're at it!

  9. Pick the right account to save money
  10. There are a number of savings options available to you to reach your goal. A Tax Free Savings Account, for example, allows you to contribute R36,000 per tax year without paying any tax on the growth or proceeds. If your holiday is going to cost more, like R70,000, you and your spouse could each take out tax-free plans to save what you need.

    Learn more about tax-free savings accounts.

Holidays are definitely more relaxing when you’re not worrying about how much debt you’re stacking up from your beach chair, so start saving today for a family holiday you’ll remember for all the right reasons.

To learn more about how you can save for travel with your family, speak to an Old Mutual financial adviser today.

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