Six Ways to Fund Your Next Vacation
Feeling the pinch? Don’t worry, you’re not alone. The sad fact is that most of us have been making cut backs lately, with many people even foregoing a vacation through the belief that they would be unable to afford it. Well the good news is that a holiday can be a much more achievable dream if you just put your mind to it and approach it in the right way; meaning even on a restricted budget you can still afford to get away. After all, it is those of us dealing with the stresses of everyday life that are most in need of some time to forget their worries and enjoy themselves. Here is how you could do it:
Choose the location wisely
Where you go can have a huge difference on how much money you are going to have to spend. Sticking somewhere closer to home will vastly reduce travel costs for example, while opting for a country with a weak currency will help your money go further by making the most of the exchange rate.
Work out the costs
Once you know where you are going, look around for the best deals and start budgeting. Knowing exactly how much you will need for each part of the vacation (travel, accommodation, spending money, etc.) makes setting targets and tracking your progress much easier.
Open a savings account
The more money you have left to hand at the end of the month, the more likely you are to spend it. Instead, set up a savings account specifically for your trip and put surplus cash in before temptation lures you into buying things you don’t need and simply later regret. If you struggle to put it away in time, try setting up an automatic transfer to move a set amount of cash from your checking account to your savings each month. You’ll get so used to it you’ll barely even notice it leaving but will soon find yourself with a substantial nest egg to fund your dream holiday.
Borrow money
If you simply don’t have enough money to put aside, you could consider borrowing it. Charging a vacation on your credit card is never advisable, as the speed of repayments and rate of interest will be difficult to keep up with. You could however take out a loan over a longer period of time with a smaller rate of interest; just be sure not to take out more than you can afford to pay back and avoid extras that will push up your monthly bill, like PPI for example.
Save on insurance
Travel insurance can be beneficial in a lot of cases but consider carefully whether you truly need it. Do you have a European Health Insurance Card that will help cover medical costs abroad or does your booking company already cover you in the event of cancellations or lost property? Make sure you aren’t taking out an insurance policy you don’t actually need.
Spread the cost
Getting the whole family involved in the savings effort will reduce the pressure on you. If your children have part-time jobs, encourage them to save up their money or if you give them a weekly allowance, tell them that in the build up to the vacation you’ll set it aside for them so they can have it to spend while away. This way they still eventually get all of their allowance but you don’t have to pay out any more money for them than usual.
Category: Budget, Family Finances, Vacation
