Budget Like A ProHow much can I afford to spend on a holiday?
The honest answer isn't a percentage of your salary. It's whatever fits into the money that isn't already promised to something else, spread over the months before you travel.
Step 1: find your spare money
Take your monthly take-home pay and subtract fixed costs, the savings you intend to keep, and any known upcoming bills. What's left is the only money a holiday should come from. The future spending planner does this in about a minute.
Step 2: cost the trip properly
A week away for two in Europe, mid-range, tends to look something like this:
| Item | Example cost |
|---|---|
| Flights for two | £320 |
| Seven nights' accommodation | £700 |
| Food and drink (£60/day for two) | £420 |
| Attractions and days out | £150 |
| Insurance, bags, transfers, parking | £180 |
| Pre-trip shopping | £80 |
| Total | £1,850 |
Illustrative figures to show the shape of the cost — yours will differ by destination and season.
Step 3: divide by the months you have
£1,850 seven months out is roughly £265 a month. If your spare money is £320 a month, the trip fits and leaves about £55 a month for everyday extras. If your spare money is £180, it doesn't — and the useful choices are to travel later, trim the trip by around £600, or accept a leaner few months elsewhere.
Step 4: protect the plan
Set the money aside as it arrives rather than at the end of each month, keep the holiday money separate from your everyday balance, and leave your emergency fund out of the calculation entirely. Read how to plan for big purchases without damaging your savings for more on that last point.
Questions people ask
Is there a percentage of income I should spend on holidays?
Rules of thumb like 5–10% of annual take-home pay are a starting point, not an answer. What matters is whether the monthly cost fits inside money that isn't already committed to bills, savings or other planned costs.
How far ahead should I start saving?
Long enough that the monthly amount is comfortable. Six months turns a £1,200 trip into £200 a month; twelve months makes it £100.
What if I've already booked and it's tight?
Work out the remaining balance and the months left, reduce the on-trip spending rather than the fixed costs, and if needed shift one savings contribution temporarily rather than borrowing.