The travel and tourism industry has come back to life after becoming standstill during the COVID-19 lockdowns. After missing going out during the first two years of the pandemic, people are also in no mood to miss the opportunity after restrictions on travel are eased.
“A vacation is always exciting, and a summer holiday is nothing but ideal. At most times we may not be able to simply take off to our dream destination as a vacation requires time, money, and the effort of planning to make the experience worthwhile,” said Anil Pinapala, CEO & Founder of Vivifi India Finance.
However, with the income of many people taking a hit during the lockdowns, funding the vacation is a major issue.
Pinapala lists some of the ways of funding your vacations:
Have a budget in place
While you can take a personal loan to meet the expenses immediately, it may become a burden and you may regret the decision when you get back from your holiday and start paying off debts immediately. Therefore, it is ideal to plan a year in advance, the destination and have a budget in place to start saving.
Make a plan
Planning a holiday includes aligning your finances and saving up at least 8-12 months to fund the trip including the booking of travel tickets, accommodation, daily expenses and more. This way, you can avoid eating into other savings, which may have been stowed away for a rainy day.
Save on bookings
Making advance bookings for your travel can save you the extra expenses that may arise otherwise when you leave it for the last minute. Using a credit card or BNPL may be a ‘No’ as you may not spend mindfully. But it is a big ‘Yes’ if you have credit points that you want to utilise for your travel this summer for purchases or travel bookings, etc.
Getting some interest by investing money in fixed deposits (FDs) and recurring deposits (RDs) would be advisable while planning to save for a holiday experience.