Best ways to fund your summer holiday this year

It’s that time of year again when you can’t switch on the TV without seeing holiday adverts — but your bank balance is still recovering from Christmas. If you’re looking for ideas for funding a break, the following tips can help get you and your family on the sand this summer.

1.    Set up a holiday savings account
If your bank offers online savings accounts with good interest rates, it is quick and easy to create a savings account specifically for your holiday fund. If your bank is offering less than 2% AER, however, you’d be better off spending a little bit longer setting up a new account with a different provider.

2.    Make regular deposits
Once your account is set up, work out how much you need to save each month to be able to afford your holiday, and then set up a monthly standing order for that amount (or as much as you can comfortably afford). If the latter is less than the former, don’t panic! The next four tips can help you make up the shortfall.

3.    Use Tesco Clubcard or Nectar points
Shop and fill up your fuel tank at Tesco or Sainsbury’s to collect reward points that can be used to help pay for your holiday. Tesco’s reward partners currently include Thomson Al Fresco, Cottages4you, Directline Holidays and Butlins, while Nectar points can be used to help pay for holidays with Expedia and Easyjet.

4.    Sell your clutter
According to a recent survey, if every household in the UK sold the stuff in their cupboards and wardrobes that isn’t being used or worn, each hoard could be sold for over £3,000! That’s enough for an unforgettable family holiday with spending money for everyone! If you don’t fancy hauling your wares to a frosty car boot, it’s easy to sell designer clothes, branded items and electronics online. Just fill in an online form and post them off!

5.    Give something up
Lent may have already started but it’s not too late to give something up and put the money you save into your savings account. Giving up alcohol and cigarettes will reap the biggest financial — and health — rewards, but cutting back on magazines, takeaways or meals out could also help you reach your holiday target.

6.    Look after your pennies
Follow your grandmother’s advice and the pounds will really look after themselves! Get into the habit of emptying 20p coins and everything smaller into a piggybank on a daily basis, and you will be surprised how much you can save.

Good Old-Fashioned Advice
While, according to a recent survey, around 16% of us will pay for our holidays with a credit card or loan, eight out of ten of us prefer to fund our holiday the old-fashioned way: with savings. If you are one of these, follow these tips and you’ll soon be on your way!