Saving for a holiday is one of the easiest goals to get right, because the deadline is fixed and the cost is knowable. Budget the whole trip, divide by the months until you go, and save that amount automatically. Here's how to do it properly.
Budget the whole trip, not just the flights
The flight price is the headline, but it's rarely half the real cost. A complete holiday budget includes:
- Flights or travel to get there
- Accommodation for the whole stay
- Food and drink
- Local transport, transfers, and parking
- Activities, excursions, and entry fees
- Travel insurance
- Spending money and a small buffer
Tally these up and you get your real target. It's almost always higher than the flights-and-hotel figure people start with, which is exactly why trips end up on a credit card.
Split it into monthly savings
Once you've got the total and a date, the monthly figure falls out:
| Trip cost | In 4 months | In 8 months |
|---|---|---|
| £800 (city break) | £200/mo | £100/mo |
| £1,600 (family week) | £400/mo | £200/mo |
| £3,000 (long-haul) | £750/mo | £375/mo |
If you've already put something aside, subtract it first. You only need to save the gap.
Enter your trip cost, anything saved already, and your travel date. PacePot shows the monthly amount and keeps you on track.
Open the holiday savings calculatorSave faster, spend less
- Book early. Flights and accommodation are usually cheaper the further ahead you book, which lowers the total you need.
- Travel off-peak. Shifting dates by a week or two can cut hundreds off the cost.
- Keep it separate. A dedicated holiday pot stops the money getting spent on everyday life.
- Automate it. A standing order the day after payday means the saving happens without thinking.
The bottom line
Add up everything the trip will really cost, subtract what you've saved, and divide by the months until you go. Automate that monthly amount into a separate pot and you'll fly off fully paid, no post-holiday credit card hangover.