These unconventional money-saving challenges could pay for your next holiday
As more and more Brits struggle to pay their bills this winter, saving for a holiday might not be the top priority. But with some careful planning, saving regularly could be easier than you think.
That’swhy Lucinda O’Brien, savings expert at money.co.uk, has shared her insights into saving for a holiday in 2023:
“During January, it felt like you couldn’t turn on the television or radio without hearing about another amazing offer for a summer holiday. And, as much as we would all love to be packing our bags, the reality isn’t so sunny.
“Weare navigating a cost of living crisis, so paying household bills and the weekly food shop is the priority because budgets are being squeezed more than ever before. In our
2022savings report, we found one in 10 people didn’t have any savings at all and 31% saved less than £100 a month.
“However, by thinking about the possibility ofa holiday next year, it could open up some saving
opportunities. Starting a savings pot is always much easier when you have a goal in mind, and a holiday in 2024 could be a good way to get started.”
Lucinda has shared her top savings challenges that will work for the next 365 days, and they offer a range of budgets so you can find the challenge that suits you:
The 365-day challenge
Okay, let’s start with the big one first. This challenge involves you saving a different amount every day and increasing it throughout the week. For example, on Monday you save £1, Tuesday £2 and then keep rising until you reach Sunday and save £7. This means you are saving £28 every week for a whole year, which is a big commitment but offers a lovely reward that you could put towards a holiday when you finish in February 2024. Holiday savings pot: £1,456
The little and often challenge
Instead of putting pressure on yourself by increasing the amount you save every day, try setting up a regular standing order to a savings account. For example, try saving £2 everyday and you’ll start to see your savings pot grow. Holiday savings pot: £730
The £1,000 challenge
If you are thinking of an amount of money that could help towards a holiday - £1,000 seems like a sensible goal. But let’s break that down to see how much you would need to save to reach this amount… And the answer is £2.74 every day. Therefore, if you think you can manage that with your budget, set up a daily standing order to your savings account and by February next year you’ll have £1,000! Holiday savings pot: £1,000
The switching challenge
If you are struggling to put money into savings, then take some time to look at your bills each month to see if you could make a saving elsewhere. Explore Money.co.uk and our partner site Uswitch.com to make sure you are getting the best deal, as some banks are offering switching bonuses. For example, TSB’s Spend and Save current account is currently offering a bonus of up to £200 for anyone that switches. Alternatively, you can contact your existing providers to see whether there is a way to reduce your bill. Broadband providers may be able to change your plan to reduce the monthly cost. Set yourself a target of saving at least £20 from your bills and then each month transfer the extra £20 into a savings account. Holiday savings pot: £440
The monthly savings challenge
If you are paid monthly, then a savings challenge that aligns with your payslip would work well. Therefore, try saving £5 in February and then increase by £5 every month as you go through the year as soon as you receive your monthly pay. This means in March you’ll save £10, in April you’ll save £15 and so on.Holiday savings pot: £390
