Budgeting for the Holidays – How to Save on Travel Expenses

holiday-budgetIf your credit card is still recovering from the cost of your December holiday, travel expenses might be last thing you want to think about – but what if there was a way to travel affordably and avoid the stress of getting into debt? Here are some easy ways to save money on your next holiday – by planning ahead.

Why do holidays always cost so much?

Sometimes holiday makers are surprised when they return home and go through their bank statements – after paying for a package holiday, it seems like the optional extras they paid for during their stay ended up costing them more than the package price.

Waiting till the last minute

One of the reasons why holidays turn out to be so expensive has to do with the way we book them – waiting until a few weeks before the departure date is one of the easiest ways to book an expensive holiday, and your choice of destinations will probably be limited. If you book early, you could save up to 40% on your trip.

Letting your credit card slip into holiday mode

Sometimes being on holiday is just what we need to relax and forget the worries of everyday life. Unfortunately, we sometimes also forget how to manage our finances while we’re away, splashing out on restaurant dinners, spa treatments, rounds of golf, and overpriced souvenirs.

These expenses are part of the holiday experience and while you should allow yourself the pleasure of spending some money on yourself and your family, it’s important to keep tabs on your holiday spending to avoid a nasty surprise when your next credit card statement arrives.

Saving for your holiday

There are two ways to save for your annual holiday – saving a regular amount each month, or pooling your savings and looking for the best holiday package in advance.

  • By saving a regular amount each month, you’ll have a guaranteed amount of money in your holiday fund by the time October or November comes around. For example, a R2000 monthly saving will guarantee you R24 000.
  • Looking out for discounted packages is a great way to save on your holiday – but you’ll need to pay in advance. You can use part of your savings to pre-book your holiday, but don’t forget to pay yourself back by topping up your monthly savings so that you stay on target.

Leave a Reply

Your email address will not be published. Required fields are marked *