4 Tips for Financing a Vacation on a Budget

vacation budget

There are many reasons to take a vacation. It’s a chance to take a break from the stress of work and recharge. It provides an opportunity to spend time with loved ones. It allows you to explore and experience a different culture.

While there’s an extensive list of benefits, there’s just one caveat: money.

Going on vacation, particularly one abroad, will often cause your bank balance to disintegrate. Because of this, it will cause people to opt against going on a much-needed break, instead deciding to play it safe and keep their money in order.

However, it’s possible to receive the best of both worlds. By budgeting properly, you can still go on a dream vacation without ending up in a financial hole. Here are four tips to ensure that’s the case:

1. Plan out your costs

First of all, you will need to plot out your expenses to come up with an accurate budget. Consider the follow costs:

  • Flights
  • Accommodation
  • Food
  • Drinks
  • Attraction tickets
  • Public transport
  • General spending money

When you tally up these costs, add another 5% to the total. This will account for any unexpected expenditures, and provide a reflection of the vacation’s overall cost. With this figure, you will have a general idea of how much money is needed – and possible opportunities to cut down on unnecessary bills.

2. Find the right accommodation

Regarding the previous point about chopping down unnecessary expenses, look no further than your choice of accommodation.

In certain cases, the cost of accommodation will be more expensive than all other expenses combined. Nevertheless, it’s also one of the best chances available to massively reduce the vacation’s overall cost.

Now you might have your heart set on a certain luxury hotel or all-inclusive resort, but searching around for more affordable accommodation can seriously pay off. By utilizing a price comparison website such as TripAdvisor, you can save a bundle of money – and you don’t necessarily have to sacrifice on the splendor or facilities.

3. Receive a helping hand

For whatever reason, you may end up financially handcuffed when gathering the necessary funds for the vacation. You could, for example, have had a nest egg saved up, but you may need to spend this on a medical emergency.

At this stage, you might feel that cancelling the holiday is a necessity – but you don’t have to go this route. Instead, you have the option of acquiring a personal loan. With a loan, you can still generate the money needed for the trip. Just remember: only borrow as much as you can repay.

4. Book early

Okay, there are certain options where you can book a last-minute vacation on the cheap. Most of the time, however, booking early will reduce the vacation’s cost. You won’t be hunting around for whatever’s left in terms of accommodation and transport, where prices will typically rise due to supply and demand.

With that said, you also want to avoid booking too early. Do this, and you could end up paying a premium.

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