Despite the global gloom and doom it is still possible to take some time off. While you might not be able to afford a room at a five-star hotel, a weekend away at a local self-catering spot is highly recommended to rejuvenate mind, body and soul.

Here are some tips from Capitec Bank’s Market and Channel Development Manager, Sbusiso Khumalo, on how to save money for a well-deserved break and how to ensure that your holiday or mini-break doesn’t break the bank…

Plan and draw up a budget

Saving for something such as a holiday is really about taking a look at your current spending patterns and deciding whether you can forego certain unnecessary luxuries or develop a way to make more money.

The amount of money you’ll need will depend on your choice of holiday — local or abroad, self-catering or hotel, package or self-planned. And, don’t forget to take into account the cost of visas, travel insurance, essential inoculations and hidden fees such as airport taxes and commission on foreign exchange purchases.

Consider these opportunities for saving:

• 4 x takeaway coffees per week = R60 per week
  x 4 weeks per month = R240 per month
  x 12 months = R2880 per year

• 1 x movie per month (+ popcorn and Coke) = R60 per month
  x 12 months = R720

• 1 x manicure per month = R150
  x 12 months = R1800

Two examples:

From as little as R6000 per return flight, budgeting on R250 to R300 per day for food and hostel accommodation, you can enjoy a fantastic beach or exploring holiday in South East Asia, while a basic all-expenses paid week at a European ski resort will cost you about R35 000.

Open a holiday savings account

This is a great way of establishing your financial goal while allowing you to keep track of the money you save. Choose a financial service provider that best suits your needs in terms of flexibility, security and simplicity. Compare interest rates — the higher the interest rate, the more you will earn on your savings. But also be aware that accounts with higher interest rates sometimes offer fewer withdrawals. Be careful and avoid accounts that don't allow any withdrawals in the first year as you will need to pay for some expenses up front such as accommodation deposits, air tickets and travel essentials.

A good idea is to set up a standing debit order from your current account directly to your holiday fund which is 'paid' on the same day as you receive your salary. This will ensure that you won’t forget to make the payment and will prevent you from spending the money on something else.

Money-saving tips for your holiday

• Book early: Early research and planning will score you the best deals on flights and hotel rooms, and also give you extra time to save more spending money.

• Book late: Keep an eye out for last minute deals and specials in the weekend newspaper or on websites such as www.iafrica.flightsite.co.za. Sign up for electronic newsletters from airlines like kulula.com and travel agents as these will keep you up to date with their latest deals.

• Surf for a deal: The internet is a fantastic resource for comparing flights, reading reviews by other travellers (www.tripadvisor.com) and creating your own holiday by booking online. Besides finding the cheapest deals, you’ll also save on travel agent fees.

Cost-cutting holiday options

• Go local: Whether you’re looking for a beach, mountain, bush, country or city holiday, South Africa has it all – and you won’t have the headache of getting a visa!

• Share the cost: A holiday home that sleeps a number of people often works out to be cheaper than accommodation that only sleeps two. But first make sure you can live with your friends or family for a whole holiday.

• Backpacking accommodation: Without the extra frills of a hotel or B&B, a backpacker is an inexpensive way to see the world. And it doesn’t mean you have to share a dorm with 20 unwashed strangers — many hostels offer private or family rooms with their own bathrooms.

• Visit cheaper countries: Rather than the big lights (and high costs) of Europe and the States, why not consider a trip to somewhere exotic and out of your comfort zone? Both Africa (Malawi, Mozambique and Kenya) and South East Asia (Thailand, Vietnam, and Malaysia) have options that are more suited to the South African pocket.

• Foreign exchange: Commission-free doesn't mean profit-free, so shop around before exchanging currency.

• Take a packed lunch: Food and drinks on low-cost airlines are pricey, so take your own.

• Travel insurance and travel miles: Look out for credit cards that offer customer loyalty benefits such as air miles with purchases or free travel insurance when you buy your air tickets.

• Paper or plastic: To make purchases abroad you’ll need to use cash, travellers' cheques, a credit card or a pre-paid travellers’ debit card. Compare fees for overseas purchases, cash withdrawals from ATMs and set-up costs. Also take benefits such as convenience and security into account because some countries do not have that many foreign exchange outlets.

• Turn off your mobile phone: Do you know how much it costs to make and receive cell phone calls abroad? After checking with your cell phone service provider it might be a good idea to deactivate incoming and outgoing calls and use SMSs or Skype instead.

• Eat local: Avoid the tourist traps. Look out for where the locals are heading and immerse yourself in the culture of your destination.

For further information about Capitec Bank, click here!

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