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People travel for many reasons. Either for business or leisure, you should never miss a chance to get to pamper yourself during the trip. It’s one of the sweetest escapes from all the stress of your everyday working life. That said, you should always find a way to reward yourself with a vacation from time to time, even once a year. It will take time to plan for everything, but get your finances secured with the following practical tips and solutions:
Travel loans
One of the major considerations for a vacation is your budget. Many people are adept at keeping their finances in check and saving enough, but some situations are out of your control. For instance, someone invited you on a trip you can’t miss out on, and your savings are not ready. Fortunately, applying for travel loans can cover your travel expenses, from airfare to accommodation. It typically requires less documentation and no guarantees or collaterals, making the process simpler. As for loan tenures, agencies can give up to five years to repay the loan, and you have the choice of which scheme you’ll follow.
However, a gentle reminder to be careful in doing so as there have been cases wherein banks and credit unions charged consumers overdraft fees for transactions even though funds were available. In theory, an overdraft fee is a charge from your bank when you take out more funds than what you have available in your account. Money is moved from a linked bank account or another loan, which can only make your debt exponentially increase. Hence, you should be wary of the banks and financial institutions you apply for.
Save up for your trip
If you are not comfortable with incurring loans, the safest route to go is to save up money for your trip. To do this, you have to keep in mind that it’s a long-term commitment that will be challenging to stick to. You need to have discipline and financial responsibility.
Start with looking at your current finances and how much you can spare for travel. Manage your money more efficiently by tracking your spending. You can do this the old-fashioned way with pen and paper, but many mobile applications can help you do this. This way, you will know how much you need to live your daily life comfortably and how much to tuck away for your vacation.
Naturally, you will have to give up expensive leisure items and momentary activities to expedite your savings. Cut down, or better yet, remove things like vices and miscellaneous from your spending list altogether. You can even go as far as allotting a certain percentage of every paycheck for your travel funds. It will form a habit and make saving less of a chore.
Set a budget
Before saving, it is wise to set a goal to better pace your saving. You would not want to save aimlessly and end up shortchanging your vacation because you didn’t save enough. Start with deciding on which country or place you want to visit. From there, you can research airfare expenses and accommodation fees. You should also include entrance fees for spots and activities you plan to do. You also need to consider the cost of your food during your stay. Whether you plan to be frugal or splurge on food all the way through is entirely up to you.
After coming up with a rough itinerary, consider the total estimated cost and the remaining time you have until your intended departure. Divide the amount by the weeks or days left to know your saving milestones. It will help set your pace and commit to your plans. But remember, you have to be realistic with your goals unless you have dedicated savings for last-minute trips set enough time for you to prepare. It depends from person to person, particularly how much you make and what you can spare. Just make sure that while you’re saving, you are not sacrificing your current quality of life.
Schedule “Smartly”
If you’re not particular with the schedule, you can save a lot of money by traveling during non-peak seasons. So avoid summer or major non-working holidays where you can expect a bulk of tourists. Rates are typically lower during the spring or fall.
Sometimes, the non-peak season depends on the place you’ll be visiting. Tropical tourist spots like Bali and Thailand have fewer visitors during the rainy seasons. But during this time, you can still go for more adventurous water sports activities such as river rafting. Another benefit of traveling off-season is there are smaller crowds. You’ll only not get to enjoy your trip more, and you’ll also experience less waiting and shorter queues. Saved time means visiting other tourist spots or just enjoying the destinations longer.
Another nifty trick you can consider is finding “free” accommodation. If a relative or a friend who lives in that city offers their place, don’t pass it up. Accommodations usually take up the most significant chunk of your travel expenses, so this will save you a lot of money. Besides, you will be mostly out and about anyway – unless your goal is a staycation kind of trip.
Go for Discounts and Rewards
If you’re considering card and club memberships, it is always worth checking for some discounts. There are credit cards explicitly meant for traveling. And usually, signing up for such will get you a free flight automatically. However, it will require you to spend a certain amount of money for a period of time. Many of these travel card deals come with complimentary travel insurance as well, so it’s a handy feature to have in case you experience a delay or lose your baggage.
Another factor in choosing your credit card is their policy on foreign transaction fees. Many companies have a certain percentage on top of the spot rate when dealing with foreign currency. But some card deals completely waive such fees. No matter how great these discounts are, you should still be wary about your credit spending. Also, pay your bills promptly to avoid interest and have a good credit score.
