How to save for a holiday

Is wandering around historic ruins your thing? Or do you prefer the thought of lying on a beach sipping a drink topped with a tiny umbrella? Whatever your ideal getaway, figuring out how to save for a holiday can feel like a challenge. But with a few smart strategies, you can reach your goals more quickly. Here are five ways to help get you there and create your own holiday savings plan:

1. Set a realistic budget

First things first, figure out how much your holiday is likely to cost. Think flights, accommodation, food and the money you’ll need once you’re there. Be honest with yourself and factor in potential extras, like taxis and the hundreds of novelty fridge magnets you just have to buy. Once you have a target, you can break it down into more manageable monthly or weekly savings goals.

2. Set up a separate pot

Having a dedicated pot for your holiday money can help you stay organised and motivated. Plus, it makes it easier to track your progress and avoid accidentally dipping into your holiday fund. With Monzo Pots, you can also set a savings goal and add a photo to keep your dream destination in mind. 

3. Automate your savings

Set up a regular transfer from your current account to your holiday Pot. Even small contributions can make a big difference over time. Automating this process means you don't even have to think about it!

4. Round up your spending 

Want to turn your morning macchiatos into an Italian vacation? Round up your spending to the nearest pound, and we’ll put the spare pennies into your chosen Pot. On average, this method helps our customers save an additional £100 extra each year! If you’ve got Extra, Perks or Max, you can customise your roundups to save 2x, 5x or even 10x spare change every time you spend. Plans start from £3 a month and are available for UK residents aged 18+.

5. Gamify your goals 

Turn your finances into fun with the 1p savings challenge. Here’s how it works: on day one, you move a humble 1p into your savings account, on day two, you add 2p, and so on. (If you’ve got a Monzo plan, we’ll do this for you automatically.) On the final day of the year you’ll be saving only £3.65 for a grand total of £667.95! 

Monzo is the bank made for travel. Pay anywhere and in any currency fee-free on your debit or credit card. Split bills in just a few taps, and upgrade to Monzo Max for worldwide travel insurance. Plans start from £3 a month and are available for UK residents aged 18+.

Find out more about why Monzo should be your first choice for travel spending.