How much should I budget for a holiday abroad?

It depends on the destination, but a rough guide for a week-long European holiday for two is £1,500–£3,000 (flights, accommodation, food, activities). A week in the UK for a couple costs £800–£2,000. Long-haul trips (USA, Asia, Caribbean) typically start at £3,000–£6,000+ for two. Budget holidays are possible for much less with advance planning.

How far in advance should I start saving for a holiday?

Ideally 6–12 months in advance. If you need £2,000 for a holiday, saving £167/month for 12 months or £333/month for 6 months gets you there. Starting early means smaller monthly amounts and lets you take advantage of early booking discounts, which typically save 20%–40% on flights and hotels.

What's the best savings account for a holiday fund?

An easy access savings account or a regular saver that lets you deposit monthly. You want easy access since you'll withdraw when you book. Regular savers from high street banks often offer competitive rates for monthly deposits. Some people use a separate account (Monzo, Starling pots, Chase roundups) to keep holiday savings separate.

How can I go on holiday with no savings?

Consider a UK staycation (camping can cost under £200 for a week), house sitting, off-season travel, using credit card rewards points, or package deals with spread-cost payments. Avoid putting a holiday on a credit card at high interest — the cost of debt will far outweigh the relaxation. If cash is tight, a no-spend weekend or local day trips can still feel like a break.

How to Save for a Holiday — Budget Tips and Savings Strategies | PocketWise

Everyone deserves a holiday, and with a bit of planning, you can build a dedicated holiday fund without straining your budget.

How Much to Save

Holiday type	Budget (per person)	For two
UK camping trip (1 week)	£150 – £400	£300 – £800
UK cottage (1 week)	£300 – £700	£600 – £1,400
European city break (long weekend)	£300 – £600	£600 – £1,200
European beach holiday (1 week)	£600 – £1,200	£1,200 – £2,400
All-inclusive resort (1 week)	£800 – £1,500	£1,600 – £3,000
USA / long-haul (1 week)	£1,500 – £3,000	£3,000 – £6,000
Backpacking Asia (2 weeks)	£1,000 – £2,000	£2,000 – £4,000

Don’t forget: spending money, travel insurance, airport parking, passport renewal, and pet care while you’re away.

Monthly Savings Targets

If you need £2,000 for your trip:

Months to save	Monthly amount
12 months	£167
9 months	£222
6 months	£333
4 months	£500

If you need £3,000:

Months to save	Monthly amount
12 months	£250
9 months	£333
6 months	£500

Where to Keep Your Holiday Fund

Account type	Pros	Cons
Separate easy access savings	Good rates, out of sight	Might dip into it
Regular saver	Often higher rates for monthly deposits	Usually limited to 12 months
Monzo/Starling pots	Visual tracking, round-ups	Usually lower rates
Chase round-ups	Automatic saving from spending	Small amounts add up slowly
Premium Bonds	Tax-free, chance of prizes	Returns aren’t guaranteed
Cash ISA	Tax-free interest	May not want to use ISA allowance for short-term goal

Top tip: Set up a standing order on payday to automatically transfer your holiday savings. You won’t miss money you never see.

Saving Strategies

The No-Spend Challenge

Method	How it works	Potential savings
No-spend weekends	Don’t spend on anything non-essential over weekends	£50–£150/month
No-spend week	One week per month, essential spending only	£100–£300/month
1p savings challenge	Save 1p on day 1, 2p on day 2, etc. (365 days = £667.95)	£668/year
Round-up savings	Round every purchase to the nearest £1 and save the difference	£20–£50/month
£5 note challenge	Every time you get a £5 note, save it	£50–£200/month

Cut Regular Spending

Area	Action	Monthly saving
Subscriptions	Audit and cancel unused ones	£20 – £50
Coffee	Switch from café to homemade	£40 – £80
Lunches	Meal prep instead of buying	£60 – £120
Takeaways	Cut from 4/month to 2/month	£30 – £60
Gym	Switch to outdoor exercise or cheaper gym	£20 – £40

Earn Extra for Your Holiday

Method	Potential earnings
Sell unused items (eBay, Vinted, Facebook Marketplace)	£50 – £500+
Cashback apps (TopCashback, Quidco)	£50 – £200/year
Survey sites (Prolific, Swagbucks)	£20 – £50/month
Dog walking / pet sitting (Rover)	£50 – £200/month
Skills-based side hustle	Variable

Booking Cheaper Holidays

Tip	Detail
Book early	Flights and packages are cheapest 3–6 months ahead
Be flexible on dates	Mid-week flights and shoulder season save 20–40%
Use flight comparison tools	Skyscanner, Google Flights, Jack’s Flight Club
Consider alternative airports	Regional airports sometimes have better deals
Off-peak and shoulder season	May, June, September, October are often much cheaper than July-August
Use Airbnb or holiday rentals	Often cheaper than hotels, especially for families
All-inclusive	Can save money vs eating out every meal
Travel insurance	Always get it — compare on MoneySuperMarket

Holiday Budgeting Tips While Away

Category	Daily budget guide (per person, Europe)
Food (eating out)	£30 – £60
Drinks	£10 – £25
Activities/excursions	£15 – £40
Local transport	£5 – £15
Souvenirs	£5 – £10
Total	£65 – £150/day

Save Money While Abroad

Use a fee-free travel card (Chase, Starling, Revolut, Monzo) — avoid bureau de change
Eat where locals eat — avoid tourist traps on the main strip
Free walking tours — available in most cities
Cook some meals — if you have an Airbnb kitchen
Set a daily spending limit — cash envelope method works well

Summary

Step	Action
1	Set a total holiday budget
2	Decide when you want to go
3	Calculate monthly savings needed
4	Open a dedicated savings pot
5	Set up automatic monthly transfers
6	Cut one or two regular expenses
7	Book early for the best prices
8	Use a fee-free card abroad