Planning a holiday each year can be pretty stressful as most people are faced with the dilemma that they feel they really need a good holiday to relax and unwind but can’t really afford one. This debate usually results in the holiday being put on the credit card and forgotten about where it sits collecting interest and becomes added to that year’s debt.
This can mean that you feel more stressed as a result of booking the holiday worrying how you will pay it off when you get home, which is far from ideal.
A better idea can be to open a savings account specifically for a holiday fund that you can build up throughout the year. You start by thinking about how much a holiday will cost then dividing it by 12, you then make a deposit into the account each month for this amount allowing it to accrue. Ideally you’d try to save a little extra so that you can also cover your spending money. Adding this cost into your monthly budgeting really will make it so much easier to save and will take the stress and extra cost out of getting a holiday on credit and pay interest fees on top of the cost of your holiday.