Saving for Holidays -Strategies, Plans etc.

Thank you everyone for sharing your opinions and strategies-keep 'em coming

 

"I never sell" is a dangerous strategy. You should always assess and reassess your properties every now and then to ensure that they are still performing well. The age-old adage that properties double in price every 7 to 10 years is only true in certain suburbs whilst other suburbs they may not move for 10+ years.

Selling 1 of the property, and reinvesting the profits into paying down debt, will allow you to make one of your property more positive cash flow, and using 10 - 20% of that extra cash flow towards your next holiday is a good bonus. Ideally, you should pay your PPR down.

If you have a car loan or thinking of getting a car loan or personal loan, consider refinancing the home loan to pay it in full. Then with the repayments, you would usually pay the car loan or personal loan, pay that back into the home loan. As home loans are often lower in interest rate, and the loan term is taken over 30 years. The amount you pay back from a car loan that is higher in interest and over in 5 years will help you pay off the car as well as your home a lot sooner. This only works if you are disciplined with your money and you don't change your car constantly. You can also take 10 - 20% of the car payments and save that for your holiday.

Keep track of your spending on food and unnecessary expenses, as well as look at getting your insurance bills requoted. Any savings you make can be put towards your holiday, and any money left over from your holiday should be put towards your home loan.