How to Budget Before your Summer Holiday

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Written By Financial master






With barely any time left before the official start of the summer holiday season, many are getting ready planning their annual holiday. However, this is easier said than done, especially as the value of the pound continues to tumble against other currencies and the economic forecasts around the country look bleak. But luckily, this does not mean that you have to give up your holidays this year. In this article I outline five simple and effective tips to help you budget better and save money for your summer holiday.

Time your bookings

While it is generally agreed that booking far in advance can help you get the best deals on flights and accommodation, sometimes it is worth keeping an eye on last minute offers, particularly if you are flexible in terms of dates or destinations. If you must travel on specific dates, try to book international flights three months in advance, and domestic flights six weeks before travelling. Also, keep in mind that as a general rule of thumb, Tuesdays are the cheapest days to fly. According to Which? magazine, you can save up to 35 per cent on airfare by travelling on those days.

Lower your car insurance costs

According to Sainsbury’s Insurance, the average premium paid for car insurance is £525, and the costs are almost twice as high for drivers under 25 years old. It is possible to save money on your car insurance by shopping around for the best deal, instead of automatically renewing your policy with your current insurer. According to the AA, you can save more than £200 by doing that. Another tip is to pay the full amount upfront, as setting up monthly payments incurs interest charges of more than 20 per cent.

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If you don’t use it, sell it

Take a look into your closet, basement, or storage room, and you are likely to find a bunch of items that you have not worn or used for months. Chances are that those items will continue to be unused, so why not try to make some quick cash for your summer holiday by selling them? Creating an account at auction sites takes only a few minutes and is a very popular way of selling all kinds of unused items. Alternatively, try the good old garage sale.

Reduce your commuting costs

The vast majority of workers drive or take public transportation to reach their workplace. According to the Office for National Statistics, driving to work costs an average of £3,745 per year. But as the days get longer and warmer, cycling to work becomes a fantastic way of staying fit, and more importantly, of saving towards your summer holiday. And if you must drive to work, why not consider joining a car sharing scheme to split costs? This will help you reduce your commuting costs.

Review your miscellaneous expenses

We all have a particular treat that we like to indulge in, whether it is stopping for a daily cappuccino or going to the cinema on weekends. You can save a couple hundred pounds on the run up to the summer season by cutting down on those little luxuries for a couple of months or so. And if you simply cannot live without them, try making your own coffee at home and taking it with you in a thermos, or make a habit of going to the cinema on discount days (usually Tuesdays and Wednesdays).

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