You may feel a little intoxicating with planning your vacation this year – especially because you might be taking one after a long time given the restrictions induced by Covid – and want to spend on the best of hotels and resorts. hobbies. With âbuy now, pay laterâ and other similar programs available in the blink of an eye, the urge to spend in no time can be strong. However, it’s important to be careful when you’re on vacation to make sure you don’t end up paying off your debts over the next six months or more.
If you stick to your budget, it is more likely that you will enjoy it more, without worrying about the future. In fact, keeping your vacation spending under control is a great way to maintain a healthy financial life. âNowadays everything is available on ‘buy now, pay later’ packages, but there is no fun when you have to suffer for the next six months for the six days you spend in a five star hotel. Says Hemant Beniwal, a certified financial planner and director at Ark Primary Advisors, a financial planning firm.
Here are five ways to spend wisely when you’re on vacation:
Set a spending limit
Budget for your entire vacation. This will prevent you from spending unnecessary and increase awareness of your spending habits. Avoid last minute shopping and make a realistic vacation spending plan.
You should start budgeting by first determining the total amount you could spend on this trip. Then list expenses, set priorities (for example, five-star hotel rooms versus two extra days off). âAfter you’ve done all of that, you can allocate funds and track your spending,â Beniwal explains.
Be realistic about your budgeting goals
It is important to be realistic about how much you can spend. It will also help you understand what you can sacrifice. You should be able to assess the current circumstances in your life and plan accordingly.
It is very easy to get swayed by friends who might indulge in luxury items and fancy stays on a trip. But assess if you too can afford all of this. If you are not in a great phase of your life, financially, create your own budget and set your goals based on your particular situation.
Try to avoid credit
It has been found that the majority of people lose sight of their monthly budget simply because their shopping bills are higher than they can afford. So avoid buying trinkets you like on vacation. Ask yourself if something is really worth the credit you’re going to take, and if you can afford that extra credit.
âThe first place to start a debt trap is often buying habits. Addiction to shopping is directly proportional to making impulsive and unplanned buying decisions. Loans or âbuy now, pay laterâ are bad loans and they put invisible chains around people’s legs. Getting out of the race or achieving financial freedom is not easy and if we add this unnecessary debt, it will be impossible for most people, âBeniwal adds.
Try to collect coupons
How often do you use online coupons collected from online stores or those available with credit cards? Take stock of what’s already available to you and start collecting more that might be available ahead of time. Before shopping at a local store in your vacation destination, you can flip through your coupons to find a good deal. This often saves a lot of money.
Reduce gift returns
It’s common to bring a vacation souvenir to friends and loved ones, but no one will judge you if you bring back something humble. After all, it’s the thought that counts. If your budget is tight, you should consider buying gifts for your friends wisely. If you have a large circle of friends, you might be able to buy local handicrafts for them, soaps, incense sticks, small souvenirs, etc.
Finally, your vacation should not become a burden on you. It should be based on wisdom and love rather than greed and competition. You will feel more at peace if you plan and budget for your dream vacation.