How to afford a holiday

May 16, 2016

Here's a little help so you don't get out of your depth!

There are two real types of saving: one for the short term and one for further down the line. The latter tends to relate to really important things like a home loan, which makes sense – in Australia's growing housing market, saving now could pay off in the future.

When it comes to short-term saving, say over a few months, many Australians are looking to take a holiday. After all, the world is a smaller place these days, so why not jet away and see more of it in your time off? Even Oz itself is a fine holiday destination.

And it seems Aussies have both of these things on the mind. According to the government's MoneySmart website, 48 per cent of us are saving for a home, while 47 per cent are putting money aside for a holiday.

However, it's unfortunate that 41 per cent of us are only able to save "a little money" from our paychecks, while 43 per cent are "non-savers" MoneySmart reports. It makes the next two questions particularly important: how much does a holiday cost, and how do you afford one?

Has the cost of your holiday left you startled? Not to worry!

The cost of a holiday

This is a question only you can answer, because it depends what you're planning to do. If you're heading to the neighbouring state or have decided to spend a few weeks exploring the Serengeti, you'll need very different budgets.

You'll need to budget for flights, accommodation, spending money and, if you're jetting overseas, travel insurance. That's the part that makes budget planning hard, though MoneySmart says the average you'll need to put together is $52 a week – that's the normal amount Aussies spend on vacation, at least.

A little budget planning can help hugely.

Of course, if you're planning on a pricier escapade, or a more budget-friendly one, that's likely to change.