We all love going on holiday, but no one likes paying for it for months after returning. With that in mind, here’s how you can get the money together before you leave and reduce the overall cost of your time away.

Get in early

The early bird finds the holiday bargain, which is why they call them ‘early bird specials’. If you want to pay less for every aspect of your holiday, plan it and pay for it as early as possible.

Airlines offer cheaper fares if you book months in advance. Fares are also cheaper if you don’t mind a couple of stopovers on the way. Some airlines are also cheaper than others and offer no-frills travel. Get online and compare all the options, because you could save hundreds, if not thousands of dollars on your travel costs.

Accommodation providers also like you to book early and offer discounts for doing so. Many also offer discounts for staying an extra day, so look for packages that offer value for money without too much compromise and plan your holiday around them. Shows, theme parks and other attractions also offer discounts, so go looking for vouchers and two-for-one offers online.

Prices also fluctuate with seasons, so avoiding busy periods such as Christmas and school holidays and travelling off-peak will not only mean less crowds, but cheaper travel and accommodation costs as well.

Travel cheaply

If you plan to fly first class and stay in five-star hotels, your holiday is obviously going to cost you a lot more. If you don’t have that kind of money or have no desire to spend that much, a few compromises while you travel can provide just as good a holiday for half the money. Things you can do include:

• Stay at B&Bs rather than hotels – you’ll not only save money, but get a taste of the local culture as well.
• Avoid hotel breakfasts – these are usually overpriced and not particularly good. Find a local café instead.
• Eat where the locals eat – it usually means better food at much better prices.
• Eat a big meal at lunch time, when prices are cheaper and go for less at dinner, which is the most expensive meal in restaurants.
• Use public transport – it’s quicker, cheaper and you don’t need a road map or an expensive hire car.
• If hiring a car, choose a small, economical one over a luxury gas guzzler.
• Avoid duty-free stores at airports, as the same thing can usually be had much cheaper when bought locally.
• Travel as a group – several friends or relatives sharing costs makes things cheaper than travelling alone.
• If visiting a particular tourist attraction, stay in the next town or suburb where accommodation is usually cheaper.
• Stay with friends or relatives where you can – it’s a great way to catch up and will save you money on accommodation along the way.

Save, save, save

Ideally you want to have saved the money you will need before you go on holiday. The best ways to do this include:

• Open a savings account that pays higher than normal interest if you don’t touch the money for a certain period and then pour every spare cent you can find into it.
• Cut down on luxuries such as morning coffees, magazine subscriptions, restaurant meals and movies.
• Buy groceries in bulk and choose the home brand items over more expensive brands.
• Make your meals go further by using up perishables and reheating leftovers.
• Avoid regular ATM fees by withdrawing enough money for the week and using cash for purchases.
• Carpool or take public transport to work and make your own and your family’s lunches the night before.
• Save on household energy costs by running your air conditioning at 25 degrees Celsius and turning off lights and unused appliances.

Take out a loan

If you simply aren’t able to save enough using these suggested budgeting methods, or if you want to get to your holiday sooner rather than later, another option would be to take out a short-term loan to finance your holiday. Many lenders (like us) provide small loans for between 3 and 6 months at competitive rates. This is a smarter option than loading up your high-interest credit card while on holiday and then facing months of financial pain when you get home.