Going on a vacation? Here is how to manage your holiday expenses; 6 amazing tips

By: |
Published: December 12, 2017 4:14:24 AM

With the winter school and college holidays approaching, many of you will be getting ready for vacation. Some of you may not be sure about how to manage your vacation expenses.

When you are on vacation, often you end up spending more than what you can afford.

With the winter school and college holidays approaching, many of you will be getting ready for vacation. Some of you may not be sure about how to manage your vacation expenses. Here are some tips to help you save for your vacation.

Create a budget

When you are on vacation, often you end up spending more than what you can afford. To avoid debts and being completely broke when you get back home, create a budget and try to stick within that. It is difficult to plan an exact amount, but you should know your limits. When you are conscious about your budget on your vacation, you will have a better chance at spending less.

Plan well in advance

One of the best ways to prepare yourself for your vacation is to plan everything you think you will do. By planning well in advance on items such as hotels, restaurants, booking of air, train tickets, late night events, etc., you will have a better estimate on how much to save. Make use of the internet resources to check out the lowest prices and best locations which will help you save a lot of money.

Open a separate account

To ensure you can save the most money right away, you need to set up an additional savings account. Opening another savings account will help you see exactly how much you have been able to save for the trip and it will keep you from spending your vacation money before the trip starts. It is always a good idea to keep your salary and savings accounts separate especially when you are building a vacation budget.

Dealing with extended families

If you are planning a vacation with your friends or extended family, create a mutual savings together. You can get group discounts on your travel and hotel and food expenses. You can all put in what you normally would have spent on a night out in a jar.

This saved money could help you all enjoy an event you normally could not afford. When you are dealing with extended families, it is essential to set reasonable and realistic boundaries. Your wallet may not be as full as others in your family or you might be having retirement, college or other valuable goals.

Be logical and realistic

The most common mistake people make is to do every activity on a trip. If you have not planned where you are going yet, you may want to truly consider what you can afford. If you are on an extremely tight budget, you need to be realistic in what you can afford, which will help you stay out of vacation debt.

To conclude, vacations are meant to be a time to relax and rejuvenate but at the same these should be financially stress-free. If not planned properly, it may turn into stressful and hectic event.

The writer is Professor, School of Commerce and Management, Central University of Tamil Nadu

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.