How to save for a holiday in 2026 (and 15 tips to actually make it happen)

Your step-by-step guide to planning, budgeting and actually hitting your holiday savings goal.

Saving for a holiday sounds simple… until real life, rising cost-of-living pressures, and everyday spending get in the way. Bills pile up, unexpected expenses pop up, and somehow the “holiday fund” never quite grows.

It’s not that you’re bad with money. Most Australians just don’t have a system that makes saving feel automatic and achievable.

The good news? You don’t need to give up everything or live on two-minute noodles. You just need a plan that works with your life, not against it, like starting a personal budget that gives you a clear plan for your money.

In this guide, we’ll show you exactly how to save for a holiday, why most people struggle to get there, and what actually works.

Most people struggle to save for a holiday because they don’t have a clear plan or system in place.

Common reasons include:

• No clear savings goal or total budget
• Trying to save “whatever is left over” each week
• Mixing holiday money with everyday spending
• Relying on credit cards instead of saving first
• Losing motivation over time.

Saving becomes easier when you replace guesswork with the structure of a solid budget.

Use MyBudget’s free Personal Budget Template to build your budget and stay on track with your holiday planning.

To work out your holiday budget, start by mapping out every major travel cost so nothing catches you off guard. Use the table below as a guide to estimate each category, from flights and accommodation to travel insurance and transport, then add it all together to get your total travel costs.

Once you calculate your total, divide it by the number of weeks or months until your trip. This gives you a clear weekly savings target. Don’t overthink the numbers, rough estimates are enough to get started.

Use our free Savings Calculator to map out your exact travel costs and reach your money savings goals.

A holiday savings plan works when it’s simple, realistic and consistent.

Start with your destination, whether it’s Bali, New Zealand, South East Asia or a bigger holiday like a Euro trip, set your travel date, and estimate your total costs. From there, break it down into a weekly or monthly savings target and keep it in a separate holiday account so you can track your progress.

The simpler the plan, the more likely you are to stick to it.

The easiest way to save for a holiday is to automate it. Set up a dedicated savings account or high interest savings account and organise automatic transfers each payday. This removes the need to think about it and your savings grow in the background.

You can also use round-up savings, where small amounts are added to your savings every time you spend.

Yes, a separate savings account helps you stay on track. It keeps your holiday money separate from everyday spending, reduces the temptation to dip into it, and makes it easier to see your progress grow over time.

Naming your account something fun can also make it feel more real.

Booking early and travelling off-peak usually leads to the biggest savings. Aim to book flights 3 to 6 months in advance, avoid school holidays, and look at mid-week or late-night options.

Using comparison websites and looking for accommodation deals on hotels, hostels or Airbnb can also help reduce your overall holiday costs.

The best way to avoid holiday debt is to start with a realistic budget and save before you spend. A clear budget shows your total trip cost, your weekly savings target, and what’s actually affordable.

Without that structure, it’s easy to rely on credit to fill the gap.

Using credit cards can lead to:

• Interest charges
• Higher overall travel costs
• Financial stress when you return.

A budget-first, savings-first approach means your holiday is already paid for before you go. You’re not relying on credit, and you’re not coming home to a bill that drags on for months.

It also makes the next holiday possible, because you’re not still paying off the last one.

There are plenty of money-saving tips and budgeting hacks you can use to boost your savings without feeling restricted. Selling unused items through a garage sale, picking up a small side hustle, using reward points, or even cutting things like gym memberships or TV subscriptions can all make a difference.

Small boosts can add up faster than you think.

Yes, travelling locally or off-peak can significantly reduce travel costs, whether you’re planning local trips, staying in holiday parks, or exploring local markets and free walking tours. You’ll often find cheaper accommodation, lower activity prices, and more flexibility with bookings.

A local getaway can still feel like a dream holiday without the price tag.

Staying motivated comes down to keeping your goal visible, whether it’s your dream getaway, an adventure like white water rafting or sky diving, or simply relaxing by the beach. Track your progress, celebrate small milestones, and keep reminders of your destination nearby.

Seeing your savings grow makes the goal feel real and keeps the momentum going.

If you want to accelerate your holiday savings, these simple saving strategies can make a big difference:

1. Automate your savings each payday
2. Open a dedicated holiday savings account
3. Cut unused subscriptions and reduce everyday spending
4. Swap takeaway for meal planning
5. Use round-up savings tools
6. Sell items you no longer use
7. Start a small side hustle
8. Use reward points or cashback offers
9. Travel off-peak
10. Book flights early
11. Choose budget-friendly accommodation or look for package deals
12. Pack carry-on or hand luggage only to avoid baggage fees
13. Use public transport instead of taxis or Ubers
14. Look for free or low-cost activities like museums, local eateries or city centre attractions
15. Set weekly savings targets and track them.

You don’t need to do all of them. Even a few can fast-track your holiday fund.

Saving for a holiday is easier when you have a clear plan and someone keeping you accountable.

MyBudget helps you create a realistic savings plan, stay on top of bills, and build savings without sacrificing your lifestyle. You’ll also get a clear 12-month view of your finances so you can see exactly how your holiday fits in.

We’ve helped over 130,000 Australians reduce money stress and reach their goals faster.

Enquire now

or call us today on 1300 300 922 to book your free personal budgeting appointment with one of our expert Money Coaches.