Want to go on holiday? Here's how to hit your savings goals on time

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Daydreaming about a future holiday can be just the tonic for getting through a tricky working week.

But if you want to turn it into a reality, working out how you're going to pay for it is usually the first step.

Saving towards a future goal requires plenty of focus and discipline.

But done the right way, it doesn't have to be overly difficult or involve dramatic cuts to your spending.

Plum (available to download on App Store or Google Play) is a smart money app used by millions of people to help them save faster for the good things in life.

Below, its money gurus reveal their four top tips for saving up for that getaway you've been dreaming of.

Saving for a future goal - like a dream holiday - doesn't have to be overly difficult or involve dramatic cuts to your spending 

1. Set a clear goal 

The first step to savings success is defining exactly what you want to achieve.

So once you've decided where you'd like to go and for how long, it's time to start totting up the likely bill.

Price comparison sites are handy for estimating the cost of travel and hotels, while a quick Google is usually enough to find info on day-to-day costs, like activities and meals out.

If you've already decided on the dates, simply divide your estimated total spend with the number of weeks left to produce a weekly savings target.

Alternatively, being more flexible about when you leave lets you decide your timeframe based on what's most achievable.

The key thing is to come up with a clear, realistic target you can work towards, as this will help with motivation. 

Knowing exactly what you want to achieve will help keep you motivated 

2. Shop around for a higher interest rate

If you're looking to save for a holiday as quickly as possible, it makes sense to make the most of every tool at your disposal.

Interest is your reward for saving, with every penny you receive helping to speed up your progress.

That's why it makes sense to shop around for a higher interest rate. 

In particular, you could consider a Cash ISA, given many providers now offer rates above 4%.

The Plum Cash ISA offers a competitive rate of up to 5.92%* AER (variable - as of 07/04/2025), which includes a bonus rate of 2.38% AER (variable) for the first 3 months. A lower rate of 3.54% AER (variable) applies after the first 3 months.

The interest rate for ISA transfers and for existing customers is 3.54 per cent (AER).

ISA rules apply. Tax treatment depends on your individual circumstances and may change in the future. 

With the Plum Cash ISA , you could access a good rate of up to 5.92%* AER (variable) for three months

3. Have a direct debit audit

While working towards a holiday is largely about what you're able to save, it's worth briefly considering the other side of the equation too.

There's a good chance you'll have racked up plenty of direct debits over the years.

By taking a few minutes to go over them you may find some you no longer need - like insurance for something you don't have anymore or a subscription you barely use. 

If you end up cancelling, you can divert this monthly sum straight into your holiday fund.

Just remember to check your contract before cancelling, in case there are hidden cancellation fees.

It's easy to forget about subscriptions, like food box deliveries! That's why it can pay to have a direct debit audit 

4. Automate your savings

It's wise to save money before you're tempted to spend it on non-essentials. After all, it's not as if there aren't enough shiny things out there to buy!

Apps like Plum help by automating your saving in the background - meaning you'll be steadily working towards your holiday even when you don't realise it!

Plum also offers a series of clever auto saver rules to help you stash more away.

With its 'Automatic' function, the app's powerful algorithm calculates what you can afford to save before setting it aside every so often.

And if you already have an exact savings goal in mind, enabling 'Weekly Depositor' lets you save a set amount each week.

Plum helps by automating your saving in the background 

5. Stay on track!

Coming up with a plan that will help you pay for your holiday is a good start, but reaching the end goal requires more work along the way.

That's why it's worth regularly checking in to see how you are getting on so you can hike your contributions if needed.

Plum lets you create separate named 'Pockets' for each of your goals - making it easy to monitor your progress.

If you realise you need to save more, it's also easy to change the amount you're putting away at any time.

You can get there: Regularly reviewing your deposits in case they need to be increased will help you stay on track 

Another way to turbocharge your savings is by 'gamifying' the process with fun features like Rainy Days, which sets aside a set amount every day it rains in your area.

That way, every time you hear the patter of rain on your window, you'll know you'll be getting one step closer to the feel of warm sand at your feet...

Start saving towards your holiday today! Download Plum via App Store or Google Play.