With summer, comes thoughts of holidays. Perhaps you’ve been making the most of short breaks, or you’ve found a lovely spot you happily revisit time and time again. But what about that one trip you’ve always talked about? The one you’ve wistfully told people you’d love to do, but something always gets in the way.
Here’s a two-step plan to help clear the path between you and making that trip happen.
1. Be clear about what you want from the trip
When a trip has spent so long in the imagination, it’s all too easy to lose sight of the details. Ask yourself some questions about the finer points of the trip, so you can start to bring the idea into clearer focus.
What’s the main thing you want to get out of the trip? How long do you need to be away for to make that happen? If anyone, who would you take with you? What kind of accommodation would you want to stay in?
This will edge you closer to a real idea of the cost. Chances are, you want to take a ‘no expense spared’ approach to this particular trip. And that’s fine.
But it’s worth trying to get an idea of how much spending money you think you’ll need, on top of your travel and accommodation costs. Being realistic upfront can really help you be certain you’ll have enough to cover everything, saving you from being taken aback by an eye-popping bill when you come back.
Aim to come up with a financial target and hold onto it.
2. Carve out a separate space in your finances
Part of the problem with making big trips happen is that everyday finances can become all-consuming and, given the chance, soak up all your income. Even if you already have somewhere that you stash cash for your typical yearly breaks, having a separate pot for the bigger, longer-term trip you’ve got your eye on can make all the difference.
Setting regular contributions, and sticking to them, is a great way to set a course towards your goal. Even if those contributions feel measly in value, make sure they’re manageable, and you’ll be able to see how you’ll build your way to your target over the long term. It could take three years, it could take five or more, but you’ll get there.
And if you choose to invest this money, you could also benefit from the power of compound returns. Bit by bit, you’ll drag that dream trip into reality.
The bottom line
Talk is cheap. Dream holidays aren’t.
Aspire to be the person who took the trip they always talked about.
As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest.