Saving for your dream trip abroad? Maybe you are finally doing that cruise you have been talking about for decades, you want to visit Asia for the first time or America is calling you. No matter how enticing these big holidays might be, many people feel that they are impossible to take because of how much they cost.
If you don't usually travel further than Europe, budgeting for a big trip abroad can seem like a momentous task. But it is definitely possible to save money for a holiday further afield, even if you don't class yourself as "wealthy". Keep reading to discover our breakdown of top budgeting tips for big trips abroad.
Choose Your Destination Wisely
If you know that you want to push the boat out with your next destination, but you don't have a set location in mind, focus on developing countries that are still cheap to visit. This will make your budgeting much easier, as things like your hotel, meals and souvenirs will all be significantly more affordable than in Europe.
South America, Morocco, Thailand and other countries in Southeast Asia will all blow your mind with their insanely low prices. In fact, you might even be able to upgrade to a fancier hotel that you would never normally dream of staying at, and eat out for every meal of your trip, all within your budget.
Work Out the Full Cost Of Your Trip
For a budget to be effective, it needs to be accurate and account for absolutely every expense linked to your trip. You probably know that you need to save for your flights and accommodation, but don't forget about all the extras – we are talking insurance, visas, transport, food, activities, extortionate airport bar cocktails, parking, tips (if applicable), your pre-holiday haircut... You get the idea.
Having a full picture of the cost will prevent you from underestimating how much you will actually spend. It is always better to overestimate your travel budget, so you don't end up running out of money mid-trip or resorting to using your "last resort" credit card. You can also plan how to cut back your spending while you save, such as by committing to a low-buy year.
Decide How Much You Can Save Each Month
A budget is always easiest to achieve when it is broken down month by month. Look at your current income and outgoings to see what you can realistically put aside. You might think that you can't save much, when actually, you are currently bordering on living beyond your means. That £100 or so you are currently spending on impromptu trips to TK Maxx, coffee on the go and meal deal lunches could be put to better use.
Set yourself a monthly saving target and work backwards from your departure date. As an example, let's say your trip costs £2,400 and you are leaving in 12 months. In that case, you will need to save £200 each month, which seems much less terrifying.
Open a Separate Savings Account (Or Pot)
The best way to resist the temptation to spend your travel fund and to avoid dipping into it when money is tight at the end of the month is to keep it away from your everyday spending account. That means creating a separate account that you won't look at every time you open your usual banking app.
If you don't want to create a whole new account, some banks use "pots", which you can use to categorise your savings moved directly from your current account. Some also offer bonuses or round-up features that add to your savings automatically.
Look For Deals in Advance
There are some pretty unbelievable last-minute holiday deals out there. But if you are planning your first trip beyond Europe or you just want a bit of structure with your saving, it is best to plan your deals well in advance. That way, you can start saving early and know exactly how much you need, rather than guessing and falling into a summer spending trap.
Booking flights and accommodation early will often give you access to lower prices. Plus, if you are happy to skip the security and simplicity of a package holiday provider, you can usually get the best deals. Use flight comparison sites like SkyScanner, set up email alerts for seasonal sales and be flexible with your travel dates to make your holiday budget stretch further.
Every penny counts – even just saving £50 on your flights or £100 on your hotel will make budgeting for your dream holiday feel all the more achievable.
