Putting money away for that dream holiday need not be a near impossible task. There are innovative ways to save for a quality vacation. From lay-bye holidays to travel stokvels, with the right financial planning, you will be able to reach your goal, or in this case, destination.
You’ve probably heard of purchasing products on lay-bye − now there’s an option to lay-bye your dream holiday. FomoTravel makes this possible by providing travellers with the option to pay off their holiday with monthly instalments before the date of travel. This means you’re able to secure your holiday without the stress of returning home with debt while committing to your goal to save. Founded by Andrew Katzwinkel and described as a lay-bye service for budding travellers, using this type of payment mechanism helps consumers break down their travel cost into more manageable monthly payments, making saving for the trip that much easier.
“I decided to start FomoTravel because too many South Africans are being prohibited from seeing the world due to the current payment methods on offer. We are forced into a corner to use credit or immediate payment which in turn deters the keen traveller from ever going on their dream holiday,” Katzwinkel said in an interview with online publication Ventureburn.
Some of the company’s travel partners include the Singer Group, which has a wide selection of travel agencies such as XL Embassy Travel. FomoTravel has also established relations with Beachcomber, Holiday Factory, Pure Sports and Pure Ski.
A great home-grown means of communal saving, stokvels have helped generations of South Africans fulfil various financial obligations or plans for decades, from home renovations to car deposits. A traditional stokvel consists of several members who all contribute a fixed amount each month, taking turns to receive a monthly payment.
In 2016, the National Stokvel Association of South Africa (NASASA) estimated that there were roughly 800 000 stokvel groups locally, collectively saving about R49 billion a year.
Travel is now one such frontier that the funds can be used for. If you know when your payment is due from the stokvel you can begin planning for your holiday and pay it in full. Alternatively, members can all work towards a single payout at the end of their financial year, split the contributions or pay towards a group trip.
Bank your way there
If saving isn’t your forte, find a savings option with your bank that will take the stress out of manually putting money away. What’s more, there are options such as 32-day accounts that limit when you can withdraw what you’ve saved.
An added benefit is that the right savings plan can also offer great interest rates. This means you can look forward to banking a little extra to spend while on holiday or move up a flight class.