While everyone is in travel mode, people tend to book flights, go abroad, and spend more time outside their homes. Tantamount to these “revenge travel” plans is the money to be spent on hotels, food, transportation, and many more because traveling means spending.
As discussed in a recent Yahoo! Finance article, a study looked into the travel spending of more than 1,000 Americans and it showed that majority went over budget. Some respondents spent over $2,000 on their last vacation and many noted that they spent more than expected on food.
This rings true even in the pre-pandemic time. Travelers tend to set unrealistic budgets– they set too high and more than what they earn.
So, to make this suppressed travel wishlist materialize without breaking the bank, the best solution to avoid overspending is budgeting. Here are some ways to do it.
Save your travel fund in advance
For about two years of hiatus, ideally, you must have saved your unused money in the bank. Now is the best time to get some for your travel plans and that will avoid you getting loans and borrowed money just for travel expenditures.
Keep your travel plans flexible
Remember that we are still in pandemic and travel protocols might change anytime- depending on the reproduction rate of Covid-19 cases. It is highly recommended that when you book a trip or flight, choose an airline or train that offers flexible plans and has client-friendly change policies. It will save you from unexpected airline cancellation fees and rebooking charges.
Look for promo and special deals
Since the travel industry is reclaiming its glory, some travel agencies, hotels and airlines will offer exclusive promos and deals to make their service more attractive to potential clients. The lower the price, the better. So watch out for holiday sales, big fare discounts, and buy 1 take 1 promo. In the Philippines, a Travel Expo is held annually to gather hundreds of airlines, tour agencies and hotels to offer discounts.
Slash monthly expenses
if you are looking forward to a big trip in the near future, it is highly suggested to cut off some house expenditures which are less of your necessities even for a temporary time. But it is a good thing if you can make it a habit in the long run.
Eliminate your debt first
It is one of the most important things to do when you are planning to go on a trip. Traveling with huge debt will only put you in a financial crisis. And if you are in need of resources, tools, and programs to help you manage your debt and budgeting, you can consult professionals like debtconsolidation.com. It will teach you how to use a debt calculator, avoid overspending and guide you in budgeting.
Use your travel credit card rewards
According to a recent CNBC article, rewards from travel credit cards can you save you hundreds on your dream vacation. You can use the points and miles you’ve accumulated for the past years as rebates or convert them into a fare discount. Some credit card companies also offer free use of airport lounges or big discounts on their hotel or airline partners. So, a free night stay or food can save you money and make your trip less expensive.
While travel is somewhat an indication of normalcy and people are trying to bring back their travel habits, these are just some tips to make travel and budgeting possible. Like I’ve always said, travel while you can but don’t overspend because it will put you on the losing end.