Consumer Tips On Saving for December Holidays

BOOKING holidays late in the year often means paying higher rates for travelling and accommodation, making holidays a pricey affair.

We often forget to factor our holidays into our budgets throughout the year which results in us having to tap into debt, or rely on a big bonus in order to make holiday payments and, at worst, postpone or not go on a well-deserved break when the end of the year comes around.

As with any other savings, it is a good idea to open a separate savings or investments account specifically for this goal, and deposit money every month.

Depending on the amount of time you have to save, you can split the money to an immediate access account as well as a fixed deposit account that releases the rest of your funds in time for your trip. By doing this, you will have easy access to funds in the event that special travel offers pop up, whilst you will still earn a higher interest on the funds in the fixed deposit.

Investing a portion of interest earned on other savings accounts into a travel savings account could be a way in which to reach holiday savings goals faster if people have limited time to save. Before doing so however, it is crucial to ensure that there will be adequate funds available for other expenses and possible unforeseen circumstances and emergencies.

Remember that a holiday remains a luxury and that it should never come at the expense of your everyday living or emergency savings. If you are unable to save up in time for your holiday, rather consider postponing until you are able fund it primarily by saving up.

* Ester Kali is the Executive of Retail amp Business Banking at FNB Namibia.

Source : The Namibian