How Best to Budget for a Holiday
Holidays might be one of the more expensive financial commitments you make in a year but they are also one of the most rewarding. If you are looking for cheap holidays 2013 then the first step is organising your budget to determine what you can afford. Here are some tips on how it’s done.
It is often advised that a holiday should cost no more than a week’s wages. If you aren’t a person who has a pot of money put away for holidays then this is a sensible guideline to follow.
Spreadsheets may seem a little dull, but creating one to determine how much money you will have to spend and how to spend it is a great idea. Split the final amount proportionally between all the key aspects of your holiday from accommodation and travel to snacks and evening drinks. Once you know exactly how much money you have you can start a realistic search.
Leave 10% of your budget spare. Coming away from your holiday with money left over is much more satisfying than finding you have blown your budget before the trip is over.
Dodge the Debt
It is advisable not to get into debt to pay for your holiday. If you have your heart set on something that would require borrowing credit then think again. You don’t want your holiday to be overshadowed by the prospect of having to pay back the money you spent on it sooner or later. If you don’t have the capital for the holiday of your dreams then work out what you particularly liked about that holiday idea and find another, cheaper destination that still has some of those qualities.
Open a Holiday Account
By keeping your holiday funds in a separate bank account you will have much better control over them. You can deposit saved money into this account making it much easier to see where you’re at in terms of saving. If you’re travelling abroad, a holiday account also offers a financial safety net. Losing the card for this account or having it stolen won’t put your everyday funds at risk. Some banks even offer special accounts that will mean you benefit from travel related perks such as free insurance or no-fee cash withdrawals abroad.
Value for Money
Once you have the amount that you can spend it’s about finding a holiday that is good value for money. At the end of the day, something that is value for money will satisfy us more than something which is simply ‘cheap.’ Price comparison sites are a great tool for ensuring that you get value for money on all aspects of your holiday from accommodation and travel to activities and dining.
By planning and being realistic with your budget you can enjoy your holiday without the burden of financial worry. Once your budget is sorted shop around for the best deals to ensure a holiday that is worth your investment.