Summer holidays 2018: How to budget on holiday this summer
Money isn’t something most people want to worry about when on holiday but if unnecessary splurging causes unhappy repercussions once back home then there is a need to try to hold on to the purse strings.
Here, credit expert Katre Kaarenperk-Vanatoa from Peachy shares her best tips for budgeting while on holiday.
“The first rule for successful saving is planning ahead,” Katre told Express.co.uk.
Firstly set a budget. “This ensures all your summer activities are affordable and that you won’t have to worry about the overspending,” she said.
When sitting down to work out a budget – and if you can really afford what you’re planning on doing – is to write an expected budget and a maximum budget.
A budget ensures all your summer holiday activities are affordable and that you won’t have to worry about the overspending
“Try to cover all the angles, all the things you might want to do that include costs,” advised Katre.
“Assume you end up doing everything and see what the worst case scenario is. Don’t sacrifice anything, don’t hold back, make sure you’re including every possibility.
“If there is something you’ve set your heart on but can’t afford and you have decided to take out a loan for the holiday, then remember that you can take out a loan to cover just the difference, instead of a loan for the entire amount.
It’s vital you have a budget set out before you head off on holiday so you know what your limit is day by day.
“If you don’t spend as much as you thought on one day, there’s more for the next,” said Katre. “Or you can save it, there’s nothing better than coming back from a great holiday having spent half of what you assumed you would.”
Summer holidays 2018: Work out an expected budget and a maximum budget
It’s also worth picking a savvy time to both book and fly to avoid high fees.
“If you plan a trip and you can’t book your holiday far in advance don’t worry, as you can often find much better deals if you hang on till the last minute,” Katre explained.
“Also try to avoid the first two weeks of the school summer holidays, as these are the busiest and most expensive. Also compare different providers and ask for quotes.
And what about overspending when you get to your holiday destination?
“Try to avoid activities that require spending money,” Katre advised. “Instead of shopping go for a walk, instead of paying for a tour have a look for yourself. For holiday treats or souvenirs, ask yourself if you’d buy this at home.
“Often we justify things to ourselves ‘because we’re on holiday.’ That can really add up if you start doing it all the time.”
Summer holidays 2018: Try to avoid activities that require spending money like cycling or walking
If you’re travelling in a group, you don’t want money woes to come between you, so Katre recommends turning to technology when it comes to sharing costs.
“There are some great apps that help splitting the bills and avoid disagreements,” she suggests. “Those apps do the calculations for you, and some can even split the costs automatically, so you can focus on having fun.”
Alternatively, if you are planning to stay home for your annual leave, do things that are cheap or even free.
“You’d be amazed how many fun things you can find that don’t cost anything,” Katre enthused. “Maybe learn a new skill, something you have been dreaming about to learn for a long time already but never had that time.”