Category: Borrowing

Should I Save up for a Holiday or Borrow the Money?

We all enjoy taking a holiday from time to time and it can be really beneficial for our mental health as well as helping us bond with family or friends. However, it can be expensive to do this and this will mean that you will have to think about how you are going to pay for it. You may decide that you will save up for the holiday or you might borrow the money, if you do not have any spare. There are advantages and disadvantages to both of these approaches and it is a good idea to think about both of them so that you can make the right decision for you.

Advantages of Borrowing

  • If you borrow the money for the holiday it means that you will be able to get your money pretty quickly. You will normally find that arranging a loan will not take that long. It tends to take longer if you want to borrow more money but you should be able to get the money that you need within a couple of days.
  • Once you have the loan, you will be able to repay it in instalments normally which means that you will be able to spread the cost across a series of months, making it more manageable.
  • You may find that you do not have the self-discipline to save up and so your only choice is to borrow. You may find that repaying a payday loan is easier for you than saving up regularly because you know that there will be consequences if you do not do it.
There are many advantages to saving up.

Advantages of Saving Up

  • If you save up for the holiday then you will be able to save the cost of the loan. All borrowing has a cost and this will mean that your holiday is more expensive. It could mean that it makes it too expensive for you to be able to go on or that you will have to change your plans so that you take a cheaper holiday which may not be the one that he really wanted to go on.
  • You might also appreciate the holiday more if you have waited and saved up for it. Sometimes when we have made a lot of effort to save up for something it can help it feel a lot more special and we remember it more and enjoy it more.

So, you can see that it is not that simple. If you borrow the money it will mean that you will be able to get the money quickly and take your holiday soon, but there is a cost which means that the holiday will be more expensive if you pay for it this way. However, some people find that they are not good at saving so borrowing might be suited better to them but those people that enjoy saving up and find they enjoy things better if they have saved for them would find saving up is a much better option. Therefore, you will need to think about what sort of person you are with regards to saving and borrowing and this will help you to decide which option will be better for you. You will also need to consider how quickly you want to go on holiday and whether the time you go is important. Also, make sure that you find out how much it will cost and this will allow you to calculate the additional cost of the holiday if you borrow money to pay for it so that you can decide whether you think that it will give you good value for money. However, make sure that you find out how much the repayments will be and make sure that you are confident that you will be able to afford them.