Holiday savings made easy: use psychology to fund your next adventure

IOL News

01-07-2025

A woman sits number crunching trying to figure out how to make her vacation dreams a reality.
Your bills are piling up, and the high cost of petrol casts long shadows over road trip plans, and your dream holiday feels forever out of reach.
With the rising costs of living, many of us are left dreaming of sandy beaches and mountain hikes while scrolling through social media, watching our friends explore the world and asking: how do they do it?
Let's face it: planning a holiday can feel like a daunting task, especially when your budget seems tighter than your jeans after a festive feast.
The reality check
A recent conversation with a friend abroad reminded me of this sad reality when she extended an irresistible invitation to her bridal party in Thailand.
The excitement bubbled up as I heard her enthusiasm over the phone, but as soon as I hung up, reality set in.
I started browsing for flight prices, and my heart sank. R20 000 just for flights? Who has that kind of cash lying around? Can I really save enough in six months?
While I contemplated dipping into my stokvel savings, a little voice in my head urged caution.
Surely, I can't be the only one grappling with the high costs of travel.
If you're like most of us, you might feel tempted to decline the invite and stick to your staycation plans.
But what if I told you that your dream holiday is more attainable than you think?
With a sprinkle of creativity and a dash of discipline, you can turn those travel dreams into reality without breaking the bank.
To tackle this growing concern, I turned to Sonja Steyn, the strategic head of wealth management, financial planning and advice at Momentum.
She shared advice on how to convert your vacation dreams into reality, underscoring that you don't need to be wealthy or wait for a windfall.
Step 1: Name your holiday
The first step to saving for your dream getaway is to give it a name. Sounds silly? Think again!
Psychologists suggest that naming your goal activates what's called 'goal identity psychology.'
Instead of just saying, 'I want to go on holiday,' try something specific like 'Bali 2025' or 'Family Safari Fund'. By personalising your goal, you create an emotional connection that keeps you motivated.
Step 2: Create a holiday jar
Next, let's talk about the power of automation.
Open a separate savings account or even grab a jar from your kitchen. Set up a small automatic transfer each month, treating it like a future plane ticket payment. You'll be amazed at how quickly those small amounts add up.
This method removes the need for daily decision-making, allowing you to build a habit that works quietly in the background.
Step 3: Swop, don't sacrifice
Big savings don't have to come from big sacrifices. Instead, focus on smart swaps.
For instance, skip the two cappuccinos a week - that's about R300 a month. Over a year, that's R3 600 saved!
Imagine what you could do with that money: hotel nights, excursions or even flights. Small, consistent changes are far easier to sustain than extreme cuts, so embrace the aggregation of marginal gains.
Step 4: Review your subscriptions
Let's face it: we all fall into the subscription trap. How many streaming services do you actually use?
Be honest! Cancel the ones you don't watch and reroute that money into your holiday fund. You won't miss them, but you'll be grateful when you're sipping cocktails on a beach instead of binge-watching another series.
Step 5: Play the No-Spend game
Here's a fun challenge: pick one day each week when you don't spend any extra money. No takeaways, no online shopping and definitely no impulse buys. Make it a family challenge; whoever sticks to it the longest gets to choose a holiday activity.
This not only builds spending mindfulness but also helps you realise how often those small purchases add up.
Step 6: Celebrate milestones
Saving money doesn't have to feel like a punishment. Every time you hit a savings goal, reward yourself with a small treat. Whether it's a dinner out, a movie night or a little shopping spree, these mini-celebrations make the journey fun.
Positive reinforcement activates your brain's reward system, keeping your motivation strong.
Step 7: Boost your savings with extra income
If you're looking to supercharge your savings, consider finding extra ways to top up your holiday fund.
Sell unused items online, take on a small side hustle, or use loyalty points (like eBucks or Discovery Miles) to cover flights, hotels or meals.
This taps into 'found money psychology,' making it easier to direct unexpected income towards your savings without feeling like you're giving anything up.
The bottom line
At its core, saving for your dream holiday isn't just about crunching numbers. It's about how your brain relates to money.
By making your goal personal, automating your savings, celebrating small wins, and redirecting windfalls, you're not fighting your instincts; you're using them to your advantage.
So, the real secret? You don't need more willpower; you need better habits.
With a few smart swaps and intentional tweaks, you'll soon find yourself boarding that plane, fully funded, guilt-free and living your travel dream.
Your holiday is not a fantasy; it's waiting for you, and now you have the tools to get there!