Saving money for your dream holiday?

Jul 26, 2022

Holidays are not just about escape, having fun and bringing back good memories. They’re essential. Whether you’re about visiting museums in Paris, shopping in London, enjoying ice creams in Rome, or taking in the sun in Santorini, travelling – especially for us island bound Maltese – is food for the soul, allowing us to relax and rejuvenate.

Having said that, nothing will spoil the good vibes you come back with from a holiday than having to pay for it on your return home. In other words, going in debt to pay for your holiday is just a bad idea. There is a better way to do it – save up and pay cash!

And if you do it right - and you can develop the minimum discipline necessary to save for a vacation in six months - then you’re on the road to managing two trips a year, all paid in cash, and stress free. So keep on reading and get ready for holidays to become a regular part of your lifestyle!

Start off by setting up a savings account. But, don’t just set up a new account at your current bank. You want this money to be out of sight; and the only reason you should dip into your vacation savings, is to pay for a vacation. Keeping your savings separate from your everyday bank will reduce your temptation to ‘dip’.

Also, try to pick an account with a low minimum balance. You don’t want to have to maintain a minimum of €500 in an account which you’re going to practically empty every six months. An account with a €100 minimum balance, or less, would be a reasonable option.

One of the keys to travelling consistently is the ability to fit your holiday within your budget. This means setting a savings goal, then picking the right kind of holiday that fits within that amount. If you’re travelling alone, a budget of around €1,000 for a trip of a few days should be fine; for a couple to travel, it would be probably closer to €2,500. If you need some kind of benchmark for a savings goal, somewhere between 2% and 5% of your gross annual household income would be a good estimate.

Next, take your holiday savings goal and divide it by the number of pay-checks you will receive over the next six months. If you want to save for a vacation every six months, the money needs to come from somewhere. Start going through your expenses, and ask yourself whether there is anything unnecessary you can eliminate and which can go towards saving for your next trip.

If you’re serious about saving for a vacation in six months, you need to get in the habit of saving before you spend. So make sure that every month you religiously deposit that monthly slice of your holiday savings goal in a savings account. After you do this for your first trip, you will realise that saving has become your new, great habit... and there’s no better satisfaction than knowing that you’re on the way to preparing yourself for yet another holiday in six months’ time!

FIMBank plc recently announced new interest rates for accounts linked to its online savings portal Easisave.com. Easisave online savings accounts now carry a 0.35% p.a. interest rate, while fixed term deposits interest rates have also increased depending on the chosen term, going up to 1.30%p.a. for a three year fixed term deposit.

One can open an Easisave Savings Account in a few simple steps through the easisave.com savings platform. For further information, please visit www.easisave.com or call the Customer Helpdesk on 21322102, available between 8.30am and 5.00pm, from Mondays to Fridays.

FIMBank plc is regulated by the Malta Financial Services Authority and is listed on the Malta Stock Exchange. The Bank is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371). FIMBank plc is a participant in the Depositor Compensation Scheme in Malta established under Legal Notice 383 of 2015 which covers up to EUR 100,000. Easisave savings accounts can be opened with a minimum of EUR50/USD50. Terms and conditions apply and are available on request. Early withdrawal is prohibited. The Bank’s registered address is Mercury Tower, The Exchange Financial and Business Centre, Elia Zammit Street, St Julian’s STJ 3155, Malta.