**Love Travel but Can’t Afford It? How to Save for Your Dream Holiday**
*By Dominic Powell, Money Editor*
*September 21, 2025 | 5:00 AM*
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After a long, cold winter, it’s refreshing to see the Bureau of Meteorology’s week-ahead forecast showing a sprinkling of 22 and 23 degree days. Spring has sprung, great news for lovers of park visits, baby animals, and the distributors of allergy medications like Telfast and Zyrtec.
Spring also marks the official end of Euro Summer, when flocks of Australians—young and old—escape winter to sun themselves in Italy, France, or elsewhere, collectively spending around $280 million. For many travellers, once the jet lag wears off, the saving for the next holiday begins.
Australians spend upwards of $200 billion each year on domestic and international travel, with the average trip budget hovering around $12,000. However, 40 percent admit to regularly blowing that budget.
While I fully believe travel is one of the best ways to spend your money, there’s no denying that $12,000, or even half that amount, is a serious chunk of change.
### What’s the Problem?
It’s unsurprising then that a recent survey from Skyscanner revealed seven out of ten Australians find saving for a holiday challenging, with cost being the biggest factor when choosing a destination.
Often, keen travellers cut down on other spending to stash money away for a holiday. In fact, a third of survey respondents said they are putting off things like buying a car or upgrading their home to afford their next trip.
### What You Can Do About It
If you struggle to save but love to travel, here are some practical tips to help boost your savings and make that dream trip a reality:
#### 1. Set Up a Travel Account
For some, this might seem obvious, but if your savings are all pooled in a single account, it’s time to stop the “sloshing” around. Having a dedicated, separate account for travel savings—or any specific goal—can make a big difference, says Renae Vercoe, financial adviser and founder of Money Mode.
Keep it separate from your everyday spending so you’re not tempted to dip into it. Give it a name that creates a connection to your goal and keeps the dream alive. Automate a weekly transfer and watch your savings build quietly. For example, $50 a week adds up to $2,600 by this time next year.
#### 2. Start Saving Early
You might roll your eyes at starting to save right after a trip, but that’s exactly the mindset you need. The sooner you start saving, the easier it becomes.
Dr. Brian Oakley, data scientist at digital bank Up, explains: if you start saving $100 every fortnight about nine months before your trip, you’ll have around $2,000 by departure. However, starting just two months out means you’d need to stash around $500 every fortnight to reach the same amount.
If you come back from a trip with money left over (lucky you!), put that aside for your next holiday rather than spending it.
#### 3. Split Your Pay
If you want to get serious about saving, especially if your goal is around $12,000, Vercoe suggests asking your employer to split your pay. Direct a certain amount each pay cycle into a separate account—ideally one not linked to your main account. The less you can see it, the less likely you are to dip into it.
#### 4. Declutter, but Make It Profitable
We all have stuff we don’t need—old clothes, gadgets, or furniture. Why not sell them on Facebook Marketplace or similar platforms? While you may get many “Is this available?” messages that go nowhere, persistence can pay off.
A good weekend of sorting and selling can easily cover the cost of a few nights’ accommodation on your trip.
#### 5. Aim Higher Than You Think
This is less of a saving tip and more of a warning. With the rising costs of just about everything, you’ll probably need more money by the time your holiday rolls around.
A handy rule of thumb is to aim for around 25 percent more than your estimated budget. Add up all your estimated costs and then multiply by 1.25. It might seem high, but when prices increase, you’ll be glad to have extra cash on hand. Plus, any surplus can simply go towards your next trip!
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*Advice given in this article is general in nature and not intended to influence readers’ decisions about investments or financial products. Always seek professional advice tailored to your personal circumstances before making financial decisions.*
Dominic Powell is the Money Editor for the Sydney Morning Herald and The Age.
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