How long will you save for your dream holiday? - Savings - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

How long will you save for your dream holiday?

How long will you save for your dream holiday?

Category: Savings
Author: Leanne Macardle
Date: 13/04/2016

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

There's nothing better than being able to jet off on a much-needed holiday, but it can't be denied that the costs can sometimes be prohibitive. This is particularly the case if you're hoping to escape to a dream destination, and research from TopCashback has revealed that, for many, turning the dream into reality can take years to realise.

Far-off plans

The research found that, while many will fantasise about the kind of holiday they'd like to go on, 91% of respondents admit that they'll be unable to make that dream come true. Affordability is by far the main cause of this (78%), but other factors can get in the way as well, such as having responsibilities that prevent them from going away (17%) and prioritising other holidays first (14%).

Nonetheless, many are certain about what their ideal escape is. For the majority, a dream holiday means visiting places they've never been before (69%) and having new experiences (62%), while for 45%, it means time spent with loved ones. A further 43% said that the ultimate getaway meant switching off from everyday life, having once-in-a-lifetime experiences and visiting famous sights, giving them a truly memorable holiday.

As for what Brits want to do on their ideal trip? Well, relaxation topped the activities list, with 72% saying they would want to put their feet up on a dream holiday. A further 66% would want to see the local landscape and 62% would want to eat local cuisine, while 56% cited seeing wildlife as a must-do activity and 54% said it was all about the local culture.

Savings goal

Given that the top dream destinations are typically far-flung places – the USA easily came out on top with 24% citing it as their dream holiday location, followed by Australia at 9%, the Maldives at 7% and the Caribbean at 6% – it's perhaps little wonder that many people find it difficult to afford such a getaway.

In fact, 64% said they'd need to carefully save up in order to fund their trip, with just 15% thinking they could save enough within a year, while 37% thought it would take between one and two years to save the full amount. However, 25% said it would take them more than five years of saving to be in a position to make their dreams come true, highlighting how much of an issue affordability can be in holiday plans.

Happily, most people would take the sensible approach if they were serious about their dream holiday, with 72% saying they'd be willing to sacrifice their social lives (such as skipping drinks and meals out with family and friends) in order to save. A further 4% would even give up their car for the extra money, but others weren't so keen, with 22% thinking that cutting back on spending for the holiday would affect their excitement about the trip itself.

Turn your dreams into reality

Despite money and day-to-day responsibilities having a clear impact on people's ability to jet off on a dream getaway, there are things you can do to turn that dream into reality – and it all comes down to saving.

The sensible 72% clearly had the right idea when it comes to saving up for this kind of holiday, for if you sacrifice a few meals out or nights at the pub once in a while, the cash could soon add up. And, if you put everything that you would have spent into a dedicated savings account, you could soon see the balance grow – and that's where the right savings account comes in.

Our best buys will be a great place to start, and if you're thinking of adding small amounts to your account over time to build up your fund, you'll probably want to look for an easy access version that allows further additions whenever you like. That way, whenever you say "no" to a takeaway, coffee or night out, you can instantly squirrel away those extra pounds – which could help you get one step closer to turning those holiday dreams into dreams come true.

What next?

Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.