While on holiday it’s easy to get carried away with your spending. Expenses that would normally make you think twice aren’t given a second thought. Besides, it’s not every day that you’re on holiday. But taking that attitude is the exact kind that will have you reeling from a major financial set back when you return home. If you don’t get a good handle on your spending, it’s easy for costs to spiral out of control.
Here we’ll look at six tips to enjoy your holiday without breaking the bank.
Review Your Finances
It’s tempting to book a holiday halfway around the world to a new destination. But you also need to look at whether it’s financially feasible. If you go on a two-week vacation and come back heavily in debt, you need to consider whether it’s worth the added financial stress. Instead, think about taking a holiday that’s closer to home or push the dates back when you’ll have more saved up.
Start Saving Now
If you’re planning a holiday that is still months away then start saving for it now. For example, if you expect to spend KES 50,000 on your holiday, you would need to save about KES 8,400 a month for six months. Always be on the lookout for ways you can save (e.g. cooking at home, buying in bulk, etc.) to reach your goal. Consider opening a high-interest rate savings account where you’ll be able to earn more interest than a regular savings account. Then you can use that extra interest you earn to fund portions of your holiday.
Create a Travel Budget
It seems you can never stop hearing about why budgets are important and rightly so. A budget lets you create a spending plan for your money. Create a budget in an Excel spreadsheet for expected expenses like food and lodging. Think about any places you want to visit during your holiday and budget accordingly so you have enough funds to cover the costs. There are also a number of mobile apps that offer similar features and even let you keep track of your spending.
Avoid Peak Season
Avoiding peak season is often one of the best ways to save on your trip. Peak season is the time of year when more people travel from mid-June through August. You’ll definitely want to avoid these times as flights and hotels tend to be more expensive due to the influx of tourists. The off-season is typically from November to March but be sure to do your research ahead of time to find the most affordable times.
Buy Travel Insurance
You can never be absolutely certain about the future. But one thing you can do is get travel insurance to cover unforeseen circumstances like trip cancellations, lost baggage, and emergency medical coverage if you need a travel doctor for any reason. Any of these scenarios can potentially wipe out a huge portion of your savings. Buying a travel insurance policy gives you extra peace of mind.
Live Like a Local
While it’s always nice to dine at fancy restaurants, doing so every day while on holiday can really add up. Living like a local not only creates a more authentic travel experience but also helps you reduce your spending while on holiday. Buy your meals from local shops and take public transportation instead of calling a taxi. Getting to know the locals is also a great way to find hidden gems in your area and get advice on things you should and shouldn’t do.
Kym Wallis, the founding director of Higher Ranking has over 15 years of advertising sales, digital strategy, and business development experience. He is currently working as Digital Adviser for TravelVax.