Overspending on a holiday is a very easy trap to fall into. The excitement of being in a new place, seeing sights, and eating new food can quickly total up. However, you can do all of these things without going over your budget. By implementing a few ideas, you can make sure your holiday is not ruined by money and cash worries. Below, we discuss our tips for holiday budgeting.
Be Flexible
When booking transport and accommodation, you can save a lot of money if you are able to be flexible. Flights and train tickets can drop drastically if you can shift around days and times. Trains are much cheaper if you travel off-peak and book well in advance.
Try to utilize price comparison sites. They can get you the best deals on flights and accommodation and often have offers available.
Luggage
Luggage can really add money to a flight, particularly when flying with budget airlines. Most of their prices are advertised without hold luggage and strict hand luggage restrictions apply.
Use this to your advantage by only booking the number of cases needed. If you and your partner can fit the children’s clothes in two cases, then you can save money on expensive hold luggage places.
If you are traveling somewhere for a longer period of time, it can be cheaper to send clothing via post than book extra hold luggage. Look at parcel comparison sites using the dimensions and weight of your package and send them to your destination.
Plan for ATM Withdrawals
When withdrawing money from abroad, prices can vary drastically. There are three factors to consider; ATM fee, bank fee, and exchange rate.
The ATM fee is the money charged by the ATM operator for the use of their machine. These fees can vary from free services to extortionate prices. Ask locals in the area which are the free ATM machines and use them.
You should also check the bank exchange rates from your currency to the local currency. Most bank ATM machines will have fairly reasonable exchange rates, but independent ATM operators can charge high fees.
Next, consider the charge that your own bank makes for taking money out abroad. To minimize a loss on all counts, always keep ATM withdrawals to a minimum, withdrawing as much money as you possibly can to maximize your loss.
Holiday Budgeting
Before the holiday starts, count up the money you have saved. Deduct any money for transport or hotels, then divide the rest by the number of days you will be away. You now have a daily budget for your trip.
If you do not spend all of your holiday budget in one day, then carry it over to the next. However, try not to exceed your budget on any given day as it can be hard to make up the losses. You may want to also have a separate budget for buying gifts and souvenirs that runs for the whole trip.
Budget for Time
Arrange your personal finances around your times. For example, you may be spending one day on a flight which will cost you far less than a day in a city. For every day like this, carry your daily budget over to the next.
If you find yourself spending more money than you planned, slow the trip down a little. Instead of going out every day, spend a few days by the pool. You may decide to cook in an apartment instead of going out for expensive meals or eat food from a street vendor.
Pay Using Card
When paying by card in a shop or bar, always choose to pay in local currency. Paying in your own currency usually has a higher rate with conversions fees, so you will end up being charged more. When using a credit card, the rate will be set by Visa or Mastercard and will likely be much lower.
Research Local Deals
Before you travel to a destination, do some research online for local deals and offers. These may be in the form of discount coupons for trips and sights, or for meals and food.
Many restaurants have excellent tourist meals for visitors. You can save a lot of money, eating at very high-end restaurants in this way. Check local review sites for great places to eat then check their website to see what they offer.
Create Your Own Tours
Arranged tours and guides are very useful. But they can also be very expensive. Save money by planning your own itinerary.
If you are the adventuring type, get online, and utilize public transport. You may even hire a car or bicycle to go and see the sights. The joy of this is that you see a lot more of the destination and often find shops, food, and sights you would not have been exposed to before.
Some city breaks even offer free walking tours. They are organized by knowledgeable guides who ask for a contribution at the end. You simply pay what you think they deserve and have worked for.
Some destinations also offer combined travel and discount cards. They allow you access to transport and discount at major attractions and eateries. Family tickets can save you an awful lot of money in the long run.
Coming Home
When you return, exchange any large amounts of leftover currency at ane exchange. For medium amounts, it may worth be worth the effort so it could be better to just spend them at the airport on your way home.
If you are looking for more advice on holiday budgeting or general money management, then make a visit to our blog a regular stop. Whether it is personal or business finance advice, we can help you organized your money starting today!