Enjoying a week in the sun or a weekend in the city
Just as saving and investing are important, so is getting a bit of work life balance and spending (within reason) on taking a break. For many, one of the keys to a happy holiday is to budget to ensure the costs can be met without causing financial stress. After figuring out where you want to holiday and how long for, it can be a good idea to work out the expected cost (including travel, dining out, accommodation and sightseeing) and set up a dedicated holiday fund in which to deposit set sums regularly until the target is reached.
Put the fun into holiday savings
A strategy to boost savings can be setting aside money for a specific goal. The inaugural ING Direct UK Consumer Saving Monitor showed the top two reasons for saving were to build up an emergency buffer followed by building up a holiday fund. As part of the strategy, set up a separate account for each savings goal and arrange regular deposits. Giving the account a specific name - such as "Scuba diving in the Maldives" - makes the purpose clear and may even encourage you to save more.