How to save money for a holiday

We know where your mind's at right now — snorkelling in Cabo, skiing in Aspen, strolling through Amsterdam... It's the picture-perfect escape. But one look at your bank account is enough to bring you back to reality.

That dream might not be as far out of reach as it seems, though. No matter what your budget's looking like so far, you can make it happen. All it takes is a little saving and strategic spending. It might not look like the getaway you're envisioning — but it might be even better.

In this article, we'll give you some practical tips that'll help you save up for your next holiday. You'll learn everything from budgeting strategies to clever ways of finding the best travel deals out there.

We'll also show you how to put your money to work for you with Revolut Instant Access Savings. Not only will it help you earn interest on your balance, but it'll also give you powerful budgeting tools that'll keep you on track all the way to your holiday.

1. Open a savings account for your holiday fund

Let's be real — you're much less likely to dip into your holiday savings if you keep them in a separate account, away from your everyday spending money. Some savings accounts also pay interest, so you'll be able to grow that money a little more over time.

Revolut Instant Access Savings is one option to check out. You'll earn up to 5% AER¹ variable on your GBP balance, with interest paid daily and instant access to your funds. You're free to add money at your own pace and make withdrawals whenever you need to — without any fees, penalties, or minimum balances to watch out for (T&Cs apply).

Besides savings, Revolut offers tonnes of additional features that'll make your travels smoother, like multi-currency debit cards with competitive exchange rates. You can also rack up RevPoints and redeem them for air miles or trip bookings via Stays, and purchase eSIM data plans in-app (T&Cs apply). Consider it your one-stop shop for all things travel.

¹ The Annual Equivalent Rate (AER) shows the interest you can earn over 1 year. AER is compounded, so you’ll earn interest on interest already earned. Rates depend on your plan type, from up to 4% on our Standard plan to up to 5% on our Ultra plan. Paid plan subscription fees and T&Cs apply. Interest offered is subject to change and any interest earned is liable to the applicable taxes. T&Cs apply.

📚 New to savings accounts? Find out what AER means and how you can use it to calculate your interest earnings.

2. Create a holiday budget

Budgeting isn't the most glamorous part of going on holiday, but it'll help you make it happen without breaking the bank. Here are some practical steps to help you determine how much you'll need.

• Start by estimating major expenses.
  These will most likely be your flights and accommodation. Use websites like Skyscanner, Kayak, and Google Flights to compare prices across different airlines and booking sites. They'll give you a rough estimate of how much money you'll need.
• Research the cost of food and drinks.
  You gotta eat. Look up online menus and reviews to estimate how much you'll spend on food and drinks while you're on holiday. Consider more affordable options like local supermarkets or budget-friendly cafés. If you do want to splurge a bit more on a fancy dinner, just make sure you build that into your budget so you don't get any surprise bills.
• Plan for additional travel expenses.
  Besides flights, consider other travel costs such as airport transfers. Public transport can be a cost-effective way to get around.
• Budget for activities.
  What are you planning to do while you're there? List all the activities you're aiming for and find out how much they cost — think day trips, tickets for events, and so on. Look for free activities to help stretch your budget. Lounging on the beach or wandering through a new city can be just as fun as organised activities and much cheaper.
• Include a backup fund.
  Set aside a portion of your budget for unexpected costs like extra cab rides, or miscellaneous expenses like souvenirs. A good rule of thumb is to allocate 10% or 15% of your total budget for this.

3. Lay out a clear savings plan

Once you've built a basic skeleton for your budget, you'll have a rough idea of how much your holiday is going to cost and a breakdown by category. The next step is to create a structured plan to reach your goal.

To get started, ask yourself these questions:

• How much can I afford to spend on my holiday right now?
  Put that money in your savings account to set it aside straight away.
• Do I need any extra money to make this happen?
  If the answer is 'no,' congrats — this is your stop. But, if the answer is 'yes,' keep reading.
• How much can I afford to set aside every month?
  Subtract your everyday expenses from your total income. From that amount, how much can you send to your holiday fund? If you're not sure, start small and see how it goes the first month. Then increase that amount gradually.
• Can I earn some extra money?
  We'll give you some ideas that might help you increase your income in a bit.
• Can I lower my everyday expenses?
  Small adjustments will go a long way.
• Can I lower the total cost I've estimated for my holiday?
  This is where shopping around comes in. You might be able to find discounts on flights, or you might have a friend who's willing to host you while you're travelling. There are lots of ways to cut back on your holiday expenses without feeling like you're missing out.

This will help you define how much you need to save and how you plan to achieve that goal. Don't worry if you need to make adjustments — flexibility is part of the process. What matters is having a clear north star.

4. Stick to your plan and track your progress

Once you've opened a savings account for your holiday, the goal is to add money to it consistently. It won't get you to Aruba overnight, but every bit adds up — and the longer the money's in your savings account, the more interest you'll earn.

Here are some of the best money-saving tips to help you stick to your plan.

• Set up automatic transfers to your savings.
  Many savings accounts let you schedule automated transfers every month, so you can send part of your pay cheque to your holiday fund as soon as it lands.‌ With Revolut Instant Access Savings, you can schedule these right in-app and time them to perfection. Set them up daily, weekly, or monthly, and change the amount whenever you need to. It's a great way to save without even thinking about it.
• Take advantage of features like spare change round ups.
  If you're using Revolut, turn this feature on in-app to save a bit more. Whenever you make card payments, your purchases will be rounded up, and the difference will be sent to your savings account. Those pennies add up, and so does interest.
• Track (and celebrate) your progress.
  With Revolut's budgeting tools, you can create spending categories for your holiday budget, set limits for each one, and get insights into your spending trends as you make your purchases.

5. Look for extra income to boost your holiday fund

Taking on a side hustle can make a big difference in your savings account. Don't know where to look? Here are some ideas to give you a head start.

• Freelancing
  Got skills in content writing, graphic design, or photography? Check out websites like Fiverr or Upwork. These can connect you with clients who need your services. You can also advertise your services on local community boards or in social media groups.
• Consulting
  If you're in fields like marketing, IT, or finance, this one's for you. Consulting is a great way to leverage your expertise and make some money. It gives you the freedom to set your own rates, build your network, and take on projects that fit around your other commitments. 
• Part-time or seasonal jobs
  Retail and restaurant jobs, for example, are usually flexible options that you can juggle alongside your main job.
• Second-hand sales
  You know those shoes that don't fit quite right? Sell them. Someone will be glad you did, and you'll make some extra cash. Websites and apps like eBay, Vinted, and Facebook Marketplace make it easy to sell the things you don't need.
• Renting out space
  If you've got a spare room in your home, consider putting it up for rent. Websites like Airbnb can help you find short-term renters. You can also post an ad at your local university to find students who are looking for housing.

6. Cut back on your everyday spending

Cutting back doesn't mean giving up the things you love. Simple swaps can go a long way, and you'll barely notice you've made a change. Here are some of the best ways to save money — painlessly.

• Shop wisely.
  Turn your weekly shop into a strategy game. Look for coupons, sales, and special deals to cross those items off your shopping list with a bit of extra cash left over.
• Cancel subscriptions you don't need.
  Go through your transaction history and see if there are any automated payments for subscriptions that are out of sight, out of mind. You may find that you're still paying for that streaming service you don't use any more.
• Go for low-cost entertainment options.
  Staying in is in — invite some friends over and host a film night at your place. Or maybe meet them at the park for a Sunday bike ride. There are plenty of ways to have fun without spending loads of cash.
• Make home-cooked meals.
  Cooking at home can be much cheaper than eating out and equally delicious. Try meal-prepping and packing your lunch for work more often. You don't have to give up restaurant meals entirely — just save them for a special treat, or plan a fancy dinner during your holiday.
• Cut down on energy costs.
  Your parents were right — switching the lights off when you leave a room can help you lower your utility bills. Unplug your electronics when you're not using them, lower the temperature on your water heater, and adjust your thermostat before you leave for the day. Simple changes like these add up.
• Borrow instead of buying.
  Maybe swap your e-books for library books, or borrow the drill you need for that DIY project from your neighbour. That goes for travel gear, too. Why buy a ski jacket you'll only use once when you can borrow one from a friend?

7. Shop around for the best travel deals

There are plenty of ways to make your holiday dream-worthy while being mindful of your budget. It just takes a little research and planning. Here are a few tips and tricks that'll help you find great travel deals.

• Sign up for price alerts.
  Many travel websites will notify you when prices drop for the destination you've set. Turn on these alerts to catch great deals as they come up.
• Be flexible with your travel dates.
  Flying mid-week or during off-peak hours can often be cheaper, so see if you can find a little wiggle room in your itinerary.
• Consider alternative airports in the area.
  Smaller airports may offer cheaper flights than major hubs.
• Book early.
  Booking your flights and accommodations in advance can save you money, especially during peak travel seasons.
• Snag those package deals.
  Booking your flights, hotel room, and car rental together can often be cheaper than booking them separately. Look for these all-in-ones on online booking platforms to stretch your money a bit further.
• Use incognito mode when searching for flights and hotels.
  Some websites track your visits and might raise prices based on your search history, so turn private browsing on.
• Join loyalty programmes.
  These can help you rack up points, discounts, upgrades, or even free flights if you travel often.
• Look for last-minute offers.
  If your travel dates are flexible, you can sometimes find great last-minute deals on hotels and tours.
• Book with Revolut Stays.
  When you use Revolut for your everyday spending, you'll earn RevPoints that you can redeem to get money off any Stays booking. There are 1.8+ million properties across 200+ locations to choose from, and you can book right in-app in minutes (Stays T&Cs apply).

8. Spend with Revolut while you're abroad

Revolut is designed for international travel, with features that'll make your holiday smoother and more cost-effective. Sign up for Revolut and check these out before your next trip.

• Multi-currency debit card
  This is your daily spending card and every travel money card you could need, rolled into one. Not only can you use it at home for everyday purchases, but you can take it abroad with you and pay in 150+ local currencies. Revolut will automatically handle the exchange for you — just pay with your card as usual.
• Competitive exchange rates and fees
  Check out the Revolut currency converter to see the current exchange rate in real-time. This will help you calculate how much you can expect to save if you spend abroad with Revolut versus high-street banks. Here's an extra perk — you won't pay any additional currency exchange fees Monday through Friday whenever you're within your plan's limits.
• Virtual cards compatible with Apple Pay and Google Pay
  You can create up to 20 virtual cards in-app and set spending limits for each one. This can be a convenient way to organise your expenses by categories and keep your holiday spending in check. Link them to your digital wallet and make contactless payments in shops and restaurants with just your phone.
• ATM withdrawals with no Revolut fees
  If you need cash while you're out and about, use the ATM locator in-app to find a cash machine near you. You won't pay any Revolut fees on cash withdrawals within your plan's limits. Pro tip — use the ATM locator to filter by surcharge-free cash machines and save a bit on third-party ATM fees.
• eSIM data plans
  Where else could you buy data in the same app you use to manage your money? Roam like a local in 100+ countries, with eSIM data plans starting from £1. Just set up your eSIM once and top up anytime. You'll be able to access the Revolut app without it using up your data, so you can check your usage and buy another plan even if you've run out (eSIM T&Cs apply).
  

9. Don't sweat the small stuff

Even the best-laid travel plans go wrong sometimes, and that's okay.

Restaurant reservations fell through? Head to the local supermarket and have a picnic in the park. It's not about the expensive add-ons — it's about having that time to recharge with your loved ones. Years from now, you won't remember you had sandwiches instead of sirloin steak that night — you'll remember the laughs you had.

And you'll have a sense of accomplishment knowing you made that trip happen with a bit of saving and resourceful spending.

Save up for your holiday with Revolut

Ready to build your holiday fund? The sooner you start, the sooner you'll reach your savings goal — and Revolut Instant Access Savings can help you get the most out of your money.

You can grow your savings on auto, make one-off transfers, and even save while you spend with spare change round ups on your purchases — all while racking up interest daily. You'll also get in-app analytics tools that'll help you track your progress and meet your goal.

With two-factor authentication and biometric technology, your account offers a safe space to keep your savings. For extra security, you can enable Wealth Protection to require selfie verification every time you withdraw money.

It's a great way to watch your balance grow — every single day leading up to your holiday.

📚 Saving up for something else? Check out our guides and explore some little-known money-saving tips.

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