Holiday Budgeting

At this time of year, it’s common for us to be planning a trip away. Maybe you skipped your summer vacay due to COVID concerns, or maybe you make it a tradition to head away at Easter.

As you get the caravan out of storage, or keep stealing glances at the Air B’n’B listing you booked to stay motivated, it’s worthwhile asking yourself what you expect this trip to cost, and how you’re going to pay for it.

We can almost hear the “Booooooooooo!” from the crowd here, but we know it’s been an interesting two years, so while getting away and having a break is completely warranted, we also know that money is tight for many, so budgeting for your holiday right now is vital.

Here’s how to make it a trip to remember without the price tag to regret.

Saving For Holidays

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Did you know that one third of Australians are financially illiterate?

A report released by The University of Newcastle Business School as part of our Financial Literacy partnership has produced a snapshot of financial know-how among Australians. The report findings also examine the impact of financial education on general wellbeing and life satisfaction.

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Make your goal as real and achievable as you can – choose a destination and what you’d like to do while on vacation. The more real you’re able to make it in your mind, the more motivated you’ll stay, and this will help your ability to regularly commit money to savings.

Use our Savings Goal Calculator

• When planning your holiday, it’s easy to just focus on the destination, which means the accommodation. While most of the time, your lodgings will be the largest expense you’ll need to budget for when saving, it’s by no means the only one.
• What about transport? Will you be driving? Plan your costs as much as you can petrol-wise, and make sure your vehicle is in good working order, including any repairs needed. Plan on flying? Look out for cheap airfare deals in advance or closer to the date to find ways to save, and don’t forget to budget for airport transfers as well.
• You’ve got to eat, and you’ll be away from home. Will you need to do a grocery shop when you arrive at your destination, or will you be able to rely on hotel-based restaurant options? Is there an option to have some meals included in the cost of your stay?
• And finally, you’ll probably want to have some fun, right? What do you plan to do? It’s easy to research the cost of activities online, and you might even pay less for booking things in advance. Don’t forget to allow yourself some room in your holiday budget as a buffer – you never know what you’ll find, and in any case, you might want to bring home some souvenirs!

How To Budget For Holidays

OK, so if you’re planning your Easter Long-Weekend get-away just now, this maaaaaay be a little late in the piece, but look – it’s helpful to know how to budget for a holiday, so here’s how.

Calculate Income

Sit down and calculate your weekly or monthly household income. This is everything you bring in, before paying any bills. Be as accurate and honest as you can, so you know what you’re playing with.

Calculate expenses

Next, list all your regular outgoing expenses – the cost of your ‘needs’. These are the regular commitments you need to meet to keep your life ticking over. Think big ticket items like housing, any loan repayments, and regular large bills like power, water, rates, insurance and annual vehicle costs. Once you have this figure, subtract it from your regular income figure to give you an amount of money that you can spend on ‘wants’ – like a holiday.

Use our Budget Calculator

Put a Value on The Holiday

Once you’ve figured out where you want to go on vacation, how you’re going to get there, and how much you estimate you’ll need to keep yourself fed and entertained, you’ve got the cost of your trip. This is your savings goal amount, and the figure you’ll need to reach.

Calculate Time Needed To Save For The Holiday

Using a Savings Goal Calculator, you can track your progress towards your savings goal. Simply input the goal amount, enter the amount of money you’ll regularly be able to contribute towards your goal, and calculate how long it will take you to save your total. Too easy!

Holiday Budgeting Tips

So, the cost of living is high, and our desire for a vacation is real, so what happens when your savings goal timeline is too damn long? How can we adjust our budget so that we can pack up and head away sooner? Here are a few tips that may help.

Reduce unnecessary spending

Basically, when it comes to wiggle room in your budget, there are two options – reduce the amount leaking out of your budget, or pour more income in at the top.

If you’ve sat down and planned your budget honestly, you may be able to see some expenses you could periodically sacrifice in order to be able to contribute more towards your savings. Do you need that second coffee each day? Are you willing to give up Netflix for a few months to have some extra holiday cash?

Greater Bank

Look for extra income

The other option that could help is to be flexible and look for ways to add more income into your budget mix.

Do you have skills that can be utilised in the form of a second job, or a side hustle? Do you have unwanted clothes or belongings that you may be able to turn into cash on DePop or ebay? Or are you willing to join the gig-economy and take on some moonlighting work on AirTasker.

Is a Personal Loan an option?

Finally, if you absolutely must get away, and a long-term savings timeline seems too much to bear, considering a Personal Loan might be an option.

For when you can’t wait, Personal Loans from Greater Bank come with competitive rates, flexible repayment options and no penalty for repaying your loan sooner, should you be able to.

Apply For Personal Loans Online

Apply with someone else

Apply on your own

Regardless of whether you’re able to save for a holiday in the longer term, or need to get away sooner with a Personal Loan, we can help make your dream holiday happen. What is important is that you have the right plans in place before you hit the road to R&R, so that you can enjoy your trip and make memories that will last a lifetime.