Travel

How to save for those special things in life

Saving for the holiday of a lifetime

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How to save for those special things in life

29 AUGUST 2008
Whether it’s Christmas, a wedding or a round-the-world trip, putting money aside in advance will make those planned events a possibility. How you go about it will depend on what you’re saving for. If you know when the event will happen, or when you’re going to spend the money, that can help you earn the most interest on your savings.

Fixed-term bonds and savings accounts that require some notice before you withdraw usually offer the best interest rates. This approach might be a bit more tricky if you want to be able to leap at a bargain when you spot one - say that Harley Davison you have always dreamed of - and need access to your cash immediately. Those wanting to get at their money quickly may prefer easy access savings accounts which offer good interest rates and the option to withdraw your savings instantly should you need to.

Saving for a wedding

Even if you decided on where to put your savings, you have still got to find the money in the first place. The internet is a great place to find tips on saving for a wedding. For example, did you know a couple could save £1,680 in a year simply by making their own lunch before they set off for work? Such simple economy measures can soon add up.

And what about getting the cash together for that all important honeymoon after the big day? Remember that you are for more likely to succeed with your savings plans if you set up a separate account, put together a realistic budget – and stick to it – and are realistic about what you can really afford. Putting regular money away into a savings account each month is a great way to plan ahead for the big day.

Saving for the holiday of a lifetime

If a global trip is your goal, then there are a range of options which will help you save the money, according to this blog. If you’re serious about your ambitions, then it will be worth making a few sacrifices, the author says. This could mean avoiding expensive nights out, or living with your partner’s parents for a short while. The loss of space would be temporary, but the memories of the trip could last a lifetime.

Whatever you are saving for, it's better to save, then buy later - rather than to borrow and buy now. That way, the bank pays you interest and not the other way around.