How To Prepare Financially For A Good Holiday?

Financial Planning March 6, 2020

‘Age is no barrier when it comes to travelling.’

What about the money? Your heart wishes to travel all across the globe, but looks like there is a dearth of money in your pocket. Whether it is summer break or the much-awaited Christmas and New Year break, everyone wishes to travel to a new destination where they haven’t been. There are some who want to fly to their original home. This may be within your country or a different place altogether.

Your children are expecting you to take them for an adventurous tour. Your girlfriend wants a romantic trip to Santorini. Your parents are old and you just want them to have some fun after retirement! You may be a solo traveller, and want to explore new places. For all of this, you need to be prepared for the expenses.

The question is – How to Prepare Financially for a Good Holiday? Even though your bank account is not in sync with your dreams and desires, but you can plan wisely and save some money.

Here’s a post that talks about how you can prepare financially before your next holiday. All it needs is effective money-management practices. Who doesn’t want to go on a debt-free holiday? Keep reading to find out more about this topic.

Sit Down and Make a Plan

Your friends are heading to Paris, and they are discussing the upcoming travel plan. Sit down with them and come up with a rough figure. When you are travelling, there can be other costs, but you can have a rough idea about how much you have to spend. Always carry a little extra cash even if the whole budget is fixed. Emergencies do not knock your door before entering! What if you feel like spending on a gorgeous dress? While you are travelling, you may come across someone special. You would ask her/him out on a date! You may even feel like travelling to another city from there. You need money for the accommodation, the food and other travel costs.

When you travel with friends, the costs are lower. This is because you will be sharing the accommodation and even the food expenses will be shared.

How do you plan to fund the holiday?

You have set your mind that you wish to go to Barcelona, but your bank account reflects your reality. You must think of the different ways how you are going to fund the holiday. Please know that travelling is not just about reaching Point A to Point B. There are going to be additional costs! You can make a savings account in another bank and send half your salary or a part of it to your bank account.

If you wish to go on a holiday and have less money right now, consider opting for a loan. All you need to do is find a lender. There are loan shops in the United Kingdom where you can meet lenders and get the amount you need. Make sure you are in the financial position to return the money to the lender.

Think of all the ways you are going to save for the next holiday. Once you have made a budget for the trip, work on the ways to accumulate money. Work harder? Borrow it from a friend? Well, in this case, you must rely on a loan lender. Why? You may want to go for a trip next month and working harder does not guarantee you become a millionaire overnight. Considering it is YOUR trip, do not commit the mistake of  borrowing it from a friend. Why should they fund your trip? Money can make the greatest relationships bitter.

Consider All The Extra Costs

You are visiting your family Thanksgiving which means you cannot go home empty-handed. Your niece and nephew are expecting a gift from their aunty/uncle. Your parents do not need fancy gifts, but it is a little more heart-warming when you take something for them.

If you are visiting home for Thanksgiving or Christmas, the food and travel expenses will go up. Isn’t that obvious? In case you are travelling to celebrate the holidays with a special someone, the hotel rooms and even food expenses will be high. Consider all these extra costs! At the end of the day, you want a stress-free holiday where you do not have to starve or live in a basic room.

On second thoughts…

Think twice before spending money to buy gifts for your loved ones. Usually people just love you for the type of person you are! They would rather spend time with you than enjoy fancy gifts. Think of creative gifts that you can give to your loved ones! Sometimes, that could put a smile on your family’s face. However, do not go empty-handed! Family may still understand your financial position, but it is always good manners to take a little something for your friends and other hosts who have called for a party.

Do not spend on people who would never think of putting a smile on your face. Gifts are an investment too! If you are planning to spend money to buy someone a gift, be sure that the person is worth all the spending!

If the gifts aren’t appreciated, you may regret the decision. It is better to avoid getting into debt and hand over some cash to the niece and nephews! Not everyone appreciates what you gift them.

Sometimes, you need to have a practical mind! Money does not grow on trees.

Think Twice Before Using Plastic Cards

People tend to go berserk once they get a credit card. While some have self-control, others feel that they will pay the debt sooner or later. How about sticking to the budget and carrying cash with you? This way you can have more control over your expenses. The point is not to overspend and stick to a budget.

The interest snowball can go haywire and out of control pretty soon! Should you use your credit card for a holiday? Not a great idea!

Holiday Loans for that Dream Trip

You have been dreaming about a holiday in Santorini! The cave with a private tub overlooking the water body is calling you, but your bank account does not have enough money. Instead of borrowing money from a friend or taking your credit card, you can opt for a holiday loan.

Holiday loans are quite popular in UK. The lenders will give you the money after looking at your current financial position/status. All you need to do is show them a proof that you have regular income. They should be 100% convinced that you will repay the loan without fail.

While we would suggest you to use your savings for the holiday, but sometimes you need it urgently. It could be a honeymoon trip or a visit to your near and dear ones. The personal holiday loan is efficient in this case!

Check your eligibility and then apply for a holiday loan. It is similar to taking a personal loan. You can get it to renovate your kitchen or even pay the instalment for your new car.

Concluding Thoughts

We would suggest you to borrow a realistic and sensible amount. Whatever your trip is costing you, borrow as much. The extra costs can be covered with your own savings.

The first step is to work on a budget. Take a pen and paper. Jot down the expenses in a diary. You would need to write down the following expenses:

  • The Airfare
  • Accommodation cost
  • Per day meal costs
  • Travelling costs (within the city)
  • Extra costs (to spend on gifts, medical, and personal expenses)

These days you can find the traveller budget on different platforms. For example, you want to travel to Maldives, you can simply check the ‘average price of a vacation to Maldives’ or ‘per day budget for a holiday at Maldives’. It will give you a rough idea about how much you have to spend for meals, accommodation and alcoholic drinks.

You must also be aware of the currency in another country. Take the example of Bali – the cost of travelling to Bali is cheaper as compared to travelling to Hawaii. Consider all the costs and you can then plan accordingly.

So, be wise and start saving today. If you do not have time to save, consider getting in touch with a money lender. There are a few loan shops in UK who connect you with a lender.

There is just one life, and you must not let the opportunity go. Go for the trip you always dreamt about! Take that cruise and meet someone new. Don’t sit in your hotel room and dream of cocktails! You can be a wise spender by planning everything ahead of time. Get a holiday loan and head out to the destination that you want to explore!

Anshu Choudhary