How to save for a holiday: the step-by-step guide you need
Your guide to planning, budgeting and hitting your travel savings goals
Dreaming of a beach escape, a city escape or that big overseas dream holiday but not sure how to budget for a holiday or stick to a holiday savings plan? Saving for a holiday becomes much easier once you know your travel costs, your timeframe and the right budgeting hacks to reach your savings goal.
In this guide, we answer the most common questions Australians ask about saving for a holiday, budget holidays, and building a realistic travel budget that works.
How much money should I save for a holiday?
To work out your holiday budget, list every major travel cost. Your total holiday costs may include:
- Flights, airlines and airport fees
- Accommodation (hotels, hostels, caravan parks, holiday parks)
- Food, drinks and self-cater options
- Daily expenses and spending budget
- Public transport, car hire or petrol
- Activities, tourist attractions and experiences
- Travel insurance
- Exchange rate costs, foreign cash or ATM withdrawals
- Passport fees, visas and travel documentation
- An emergency fund for unexpected expenses.
Once you calculate your full travel costs, divide them by the number of weeks or months before your trip. This gives you a weekly savings target for your holiday savings account.
Use the MyBudget Savings Calculator to map out your exact travel costs and reach your money savings goals.
How do I create a holiday savings plan that actually works?
A strong holiday savings plan starts with a clear destination, a complete travel budget, and a realistic timeframe. This helps you stay organised, avoid overspending, and take advantage of early-bird flights, off-peak accommodation and budget flights.
A simple plan includes:
- Your destination and expected travel costs
- Your dream getaway date
- A realistic savings goal
- A weekly or monthly savings target
- A dedicated holiday savings account
- A budget planner or tracking system to keep you on track.
Use MyBudget’s free Personal Budget Template to build your budget and stay on track with your holiday planning.
What is the easiest way to save money for a holiday?
Automating your savings is the easiest and most reliable way to hit your holiday savings goal. Open a separate holiday savings account, nickname it something fun like Tropical Dreams or Poolside Retreat, and set up automatic transfers.
Round-up savings also help by depositing small amounts every time you spend. Over time, these micro-savings grow your holiday fund without effort.
How can I cut expenses to save for a holiday quickly?
If you want to save money quickly, small changes make a big difference. Try:
- Swapping takeaway for home-cooked meals
- Choosing generic brands at the supermarket
- Bringing lunch instead of buying it
- Cutting unused subscriptions
- Reducing impulse online shopping
- Shopping second-hand or at thrift shops
- Holding a garage sale to declutter and raise cash
- Using public transport instead of rideshare
- Packing carry-on only to avoid baggage fees.
Should I open a separate savings account for my holiday?
Yes. A dedicated travel savings account or holiday savings account keeps your travel money separate from everyday spending. It improves motivation, reduces temptation, and helps you track holiday savings progress clearly.
When is the best time to book flights and accommodation to save money?
To get the best travel prices and build a budget holiday, try:
- Booking flights 3–6 months in advance
- Travelling outside school holidays
- Choosing mid-week, red-eye or later flights
- Staying in hostels, self-cater apartments or caravan parks
- Comparing prices across airlines and accommodation sites
- Travelling during shoulder or off-peak seasons.
Domestic holidays across Australia are often much cheaper outside major event periods.
How can I save for a holiday without going into debt?
Stick to your Holiday Budget Template and avoid relying on credit cards. Credit card interest, exchange rate fees and ATM charges can quickly increase your trip costs.
Saving first means you won’t return home to money stress. Your holiday stays a highlight, not a debt burden.
What are fun or creative ways to boost my holiday savings?
Here are some money-saving hacks Australians love:
- Starting a side gig or side hustle
- Selling unused clothes or furniture
- Joining a travel savings challenge
- Using reward points or a rewards card
- Meal prepping to reduce food costs
- Booking early with budget airlines
- Checking online for free or low-cost activities
- Signing up to airline newsletters for sales alerts.
For more ideas, explore MyBudget’s Top 25 Side Hustles.
Should I consider travelling locally or off-peak to save money?
Yes. Domestic travel can dramatically reduce holiday costs. A beach weekend, city break, or family holiday in regional Australia often costs far less than international travel. Off-peak dates also mean cheaper flights, flexible accommodation prices and smaller crowds.
How do I stay motivated while saving for a holiday?
Keep a visual reminder of your trip savings goal. Try:
- A vision board of your dream holiday
- Tracking progress in your budget planner
- Marking milestones (e.g. first $500 saved)
- Checking weather forecasts and imagining your getaway
- Saving holiday inspiration in a folder or Pinterest board.
Seeing your savings grow helps keep the momentum going.
How can MyBudget help me save for a holiday?
MyBudget can design a tailored holiday savings plan that fits your life and long-term goals. We help Australians budget, save and plan stress-free holidays with:
- A tailored travel budget
- Bills paid on time
- A clear savings goal
- A full 12-month view of your money.
We’ve helped over 130,000 Australians reduce money stress, build savings and achieve their financial goals.
Enquire online or call 1300 300 922.
FAQs
How long does it take to save for a holiday?
It depends on your destination, travel costs and how much you can put aside each week. Most Australians take 3–12 months to save, but a clear holiday budget and automatic transfers can help you reach your goal faster.
What is the best way to budget for a holiday?
Start by listing all holiday costs, set a total savings goal, and divide it into weekly targets. Using a holiday budget template or a dedicated savings account helps you stay organised and avoid overspending.
Should I use my credit card to pay for a holiday?
It’s safer to save first. Credit cards add interest, exchange rate fees and ATM charges that can make your trip far more expensive. A savings-first approach keeps your holiday stress-free when you return home.
What is MyBudget?
MyBudget is one of Australia’s most trusted budgeting and money-management services. For over 25 years, we’ve helped more than 130,000 Australians create personalised budgets, reduce debt, build savings, and reach their financial goals. We combine expert money coaching with powerful technology to organise your expenses, pay bills on time, reduce credit card debt and take the stress out of managing money. If you want a proven path to financial clarity, MyBudget can help you build a plan that supports your long-term financial wellbeing.
What can I expect at my free MyBudget appointment?
Your free MyBudget appointment is a relaxed and supportive conversation with a money coach. We explore your current financial situation, including income, bills, debts and savings goals, and build a personalised budgeting plan that shows how MyBudget can reduce your money stress, improve cash flow and help you work toward your financial goals. You will leave with clarity, confidence and a clear pathway to living life free from money worries.
What makes MyBudget different?
MyBudget combines expert financial coaching with smart technology to give you a personalised money management system that makes budgeting easier. Unlike traditional budget apps or budget spreadsheets that you manage on your own, we help you organise bills, reduce debt, plan for future expenses, build savings and stay accountable. We can even negotiate with your creditors for you. With more than 25 years of experience, our team guides and supports you every step of the way so you can finally feel in control of your finances.
This article has been prepared for information purposes only, and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.