How to save for your summer holiday next year

The summer holidays are still in full swing and our social media feeds are packed with travel moments from across the globe. 

But while it might feel like everyone is jetting off on holiday, there are still plenty of people that don’t have a budget for a summer holiday. 

If this sounds familiar then there is a way to turn this dream into a reality. The only catch is you might need to grab your passport next year. 

With some planning, a lot of determination and a clear goal in mind, here are some of the ways you can save for a summer holiday in 2025. 

Set a savings goal 

To start your savings journey, it’s important to set a clear goal. Do some research on where you would like to go next year and for how long - then explore how much it would cost. 

January is a popular time to book a summer holiday, but to give yourself as much saving time as possible, look at the current last-minute deals as you can always do the same next year. 

But remember, you are always in control. So if you would prefer to book a holiday in January or March, use this timeline to work out how much money you’ll need to save each month. Plus, as well as transport and accommodation, include other expenses like food and activities into your savings goal. 

Open a savings account 

Once you know how much money you’ll need, then it’s time to set up a home for your savings. The Bank of England recently dropped the base rate to 5% and this could impact savings rates during the next few weeks. However, there are still plenty of deals available which means you can earn competitive interest on your savings. 

If you already have a lump sum saved then move it into a high interest savings account. This could be a fixed-term or instant access account, depending on when you’ll need to access the money. Principality Building Society is currently offering an easy access account at 5.00% and this can be opened with just £1.

Alternatively, if you are starting from scratch, you could set up a regular savings account as this allows you to add a specific amount of money each month. 

Reduce monthly expenses

If you are currently struggling to save any money each month, then it’s worth doing an audit of your expenses to try and cut spending. For example, are there any subscriptions you don’t need anymore? Or could you make a packed lunch for work rather than paying for lunch? You can also have a chat with your utilities providers to see whether there is a way to reduce your monthly bill. 

Save little and often

Saving money can feel like a mountain to climb, especially if you have a significant end-goal. The best way to tackle this is to save little and often - preferably in the aforementioned regular savings account. Set yourself a target of saving at least £20 each week (alongside other savings too) and you’ll have more than £1,000 after one year. 

Try a side hustle 

Another way to boost your savings is to try a side hustle. Many people have expanded their income by setting up a side hustle and these jobs can range from dog walking to selling photography or other crafts. 

However, side hustles do come with responsibilities like paying tax and insurance - so do your research before setting it up. 

Sell unwanted clothes or other items 

If a side hustle feels like too much of a commitment, then you could always do a clear-out at home. You’ll probably have some clothes or other household items that you don’t use anymore.

The sales from these items can then be added to your savings account and you’ll be surprised at how it adds up. 

Switch bank accounts to earn bonuses 

Many high street banks are now offering new customers a cash bonus when they switch current accounts. For example, TSB has a switching deal of up to £190*, but there are certain steps you'll need to take to earn this bonus. 

You can also switch your current account as often as you wish, so the bonuses could be added to your savings pot if you are eligible. 

*Terms and conditions apply 

Take on a savings challenge 

A popular way to save money for a certain goal is to try a savings challenge. The challenges vary depending on how much you need to save, but you could try the 365-days challenge. 

This involves saving a different amount every day and increasing it throughout the week. So on Monday you save £1, then Tuesday it would be £2 and so on, until you reach Sunday and save £7. This means you’ll save £28 every week for a whole year, giving you a total of £1,456. 

Track your progress 

As the days turn into weeks and then months, it’s important to track your progress. Regularly review your savings and adjust your budget if you aren’t meeting your goal.

This is also a good way to stay motivated as you’ll see how much your hard work is paying off.