Going on a holiday can be expensive. You usually end up needing more money than you originally expected which can cause unnecessary stress during this exciting time. You want to enjoy your holiday and not miss out on doing things due to financial problems. Having a financial plan in place before you travel will help you prepare so you don’t run out of money.
Create a budget before you travel
For your holiday, figure out what you will need to spend money on, including:
- Travel insurance
- Flights and accommodation
- Booking tours and activities
- International roaming on your phone
- Getting around (taxis, public transport, rental cars)
- Organise a passport and visa (for overseas travel)
- Travel credit card/cash
Draw up a budget for your holiday with a breakdown of all your expenses for before and during your holiday. This will help you prepare for how much money you will need and whether you need to seek extra finance before you start booking your holiday. If you have come up short, then a personal loan might be a good option to give you the extra funds required.
How will you be spending on your holiday?
It’s always a good idea to set up a travel savings account and organize a travel credit card or debit card. Credit cards come in handy to book flights and accommodation as well as purchases when you run short on cash. Majority of banks have travel debit card options which means you can transfer money to your travel account to use while travelling. Whether you are going to use a debit card or credit card for transactions you need to make sure you notify your bank of where you are travelling to so your accounts don’t get frozen on suspected fraud activity. If you are travelling overseas and taking cash to spend, make sure to take note of exchange rates and convert when the exchange rates are good.
You never know what will happen while you are overseas; you could have an accident, get sick or lose your luggage for example. Travel insurance will make sure you are covered for any unexpected issues or medical bills that may arise.
Make sure direct debits are set up for your every day bills
Have direct debits in place to pay bills, rent or mortgage payments so you don’t need to be worrying about paying things while you are away. Put these expenses into your travel budget so you can allow for the deductions.
When you travel, things can get costly. So pre-planning and budgeting is the best thing to do so you are not stressing about money while you are trying to enjoy yourself on holiday.