BY Kati Dijane
Many of us have a bucket list of places to visit. If you are lucky enough to book the book the holiday destination of your dreams for some much-needed relaxation, you will need a full-proof plan ahead. It is far better to invest a little time in planning and budgeting ahead of that trip before you pack your sunhat and holiday reads. This will help you to avoid overspending, and even dipping into money you do not have, and return far more stressed from financial mismanagement.
Drawing up a holiday budget and sticking to it is your best hack for your next getaway. Check out our easy guide below.
Plan ahead
List all of your expected holiday expenses. This includes ground transportation, activities, meal & drinks, entertainment, travelling and accommodation, flights, and service tips.
Many people only think about gifts and forget that there are a lot of other expenses too. This way, you’ll get a clearer picture of everything you need to budget for.
Spending limit
Decide how much you can realistically afford to set aside for your holiday expenses. Don’t plan to spend more than you can afford or have saved for. If you use your credit card for an early bird special, pay it off before you leave for your holiday.
Assign your cash
Allocate your budget according to the different expense categories. Assign a specific amount for flights, accommodation, restaurants, and so on.
Shopping
Shop around extensively for online discounts and compare prices before you book your next vacation. When shopping for flights, look around on Tuesdays and Wednesdays, when they will likely be discounted.
Track your purchases
As you spend, subtract the amount from your normal budget total. This will let you know how well you’re sticking to your holiday budget and will make it easier to adjust between categories if needed.
Emergency fund
Always set aside an emergency fund for those last-minute extras that can make or break your much-needed holiday. A comfortable figure should be about 10% of your overall travel budget. This will ensure that you have enough funds to dip into when needed and take the stress away.
This article was first published in www.kdaniellesmedia.com
