As enjoyable as traveling and seeing the world can be, there is an unfortunate downside: the cost. For those who want to travel frequently, financial management is a hugely important consideration, so we thought it might be useful to assemble a few tips that may be of assistance in this regard…
#1 – Include spending money in your initial budget
Budgeting for each trip is perhaps the most critical aspect of holiday financial management, but there’s one aspect that is often overlooked when setting a budget: spending money. Spending money can be seen as a different thing to the cost of flights, accommodation, and activities, but ultimately, the funds are all coming from the same source and being used for the same purpose, so they should all be considered together. Look at your finances, check your savings, and consider options such as using a guarantor loan calculator if a friend or family member is willing to help you finance the trip. When you know what you have available, you can then allocate amounts across the whole holiday from start to finish, rather than just what you will have to pay before you leave.
#2 – Consider one long holiday over lots of short ones
It’s fairly common for travelers to approach the holidays they take with a “little and often” approach – for example, a city break here and a weekend away there, rather than longer stays of two weeks or more. Often, the cost is a significant factor in this decision: short trips are lower in cost, which can make them seem like a better deal. However, multiple short trips can actually work out as more expensive than a long holiday, as many of the incidental costs (such as airport parking) are incurred multiple times, rather than just once, as would be the case with a long holiday. If you actively prefer short breaks, then that’s fine, but if keeping costs low is a priority, one long holiday is likely to be less expensive than two or three short ones.
#3 – Try to be as flexible as possible
When it comes to planning a holiday, specifics can really cause the price to mount. For example, if you’re set on staying in a particular hotel, driving a certain type of rental car while there, or flying to and from your destination at specific times, then you’re stuck: whatever the price is to meet those specifics, you’re going to have to pay it. In contrast, flexibility means that you can make choices with price a foremost consideration. Sometimes, everything will align and your specific preferences will be the best deal, but if not, then you’ll be able to take advantage of the lower costs while still ensuring you’re able to see a new destination.
Funding traveling experiences is a common and testing issue, but keeping the tips above in mind should allow you to see the world in a way that suits your personal finances.