How to save for your next big trip

I used to be terrible at saving – like really terrible. Thankfully Vicky is a bit of a saving whizz and recently I have become so much better at putting some money aside for our next big trip. We’ve recently started saving for our trip to Thailand next year (as well as our wedding) and have been thinking about how best to save up. Here are our top 5 tips on how to save for your next big trip.

1. Use Monzo Pots

We are fully converted to the Monzo way of life. If you are part of the coral coloured card cult you will know just how much Monzo can change the way you think about money and banking. One of my favourite features is Pots. You can create a little savings pot within your bank account, call it whatever you want and even customise it with your own photo. Each month we put money aside into our holiday pot ready for our next big trip. If you know how much you need to save (see #3 below) then you can also add a goal to help you save for your next big trip. 

2. Payday is save day

This is a big one for us. Each month we plan our saving into our monthly budget so that when we get paid a big chunk of our pay cheque goes straight into a savings account. Turning payday into save day means you plan for your saving each month and live within your means. If you know what day you will be paid each month then you can set up a direct debit too so that your savings will come straight out of your account and into your savings without you having to do anything at all!

3. Know what you’re saving for

It always surprises me when people start saving for a trip without the end goal in sight. If you haven’t priced up your holiday – how do you know how much you need to save? We have priced up Thailand, given ourselves plenty of spending money and a little bit of a buffer in case flights and hotels get more expensive before booking. This means we know exactly how much we need to save and when we need to save it by. It really helps with your planning.

4. Start early

Here’s one we learnt the hard way. We were meant to go to Thailand this year but I started saving waayyyy too late which meant by the time I had started to think about it I knew I wasn’t going to get the money together before our trip. This time round I won’t be making the same mistake again so I’ve already started putting some money away for our trip next March. Plan ahead and you will be ahead of the game.

5. Mindful spending

Most of this post so far has focussed on saving but the other way to save money is of course to spend less. Now there are loads of people out there telling millenials that if you swap your morning coffee and avocado toast you could buy a house in a year – it’s bullshit. If you want to spend your hard earned money on coffee – go and do it! But what you can do is be more mindful in how you spend your money. Think of money as the language of priorities. If I buy this now, what will it cost me later? Would I prefer to have dinner out tonight or a bit more spending money for a nice dinner out on my next holiday. You don’t always have to say no but in these days of easy contactless spending it is definitely worthwhile to be a bit more mindful on what you spend. 

Photos from unsplash and monzo

Alex is a solicitor at an international law firm based in London. He has always loved travelling and loves to eat like a local. His favourite destination is Peru where he spent a month travelling in 2009 with World Challenge.

post a comment