Going on vacation is expensive, enjoying a holiday abroad is even more so. You know how they say a goal without a plan is just a wish. Well, if what your goal is an international holiday, you need to take concrete steps to make it happen, and that’s going to involve some financial planning.]
Here are 10 money saving hacks that can help you afford foreign travel:
Keep Record of Your Spending
Do you remember how your mother or grandmother had a notebook where she recorded all her expenses just to make sure she was sticking to her budget? Keeping an expense diary will make you aware of all your unnecessary expenses and soon you will find your spending behaviour change. Try the Spendee app to keep your spending record and over time you will see where most of your money is going and what you can do to save more efficiently.
Open a Recurring Savings Deposit
Set aside a sum of money that goes to fill your travel fund. If your travel plans are in the short term, use a fixed deposit with a shorter tenure. You don’t need to jog over to the bank to set this up. Do it over your phone using your banking app.
Pack a Home-made Lunch to Work
If you are in the habit of eating out for lunch every day, you might want to pack yourself a quick meal and save money. If you were to do the math, you might find that the more home cooked meals you eat, the more money you can save for your travel fund. And if you don’t know to cook, don’t worry, there’s always Youtube and a host of free cooking instructors who can show you exactly what to do.
Check if You Have a Good Cell Phone Plan
How often do you go back and check if you are on a good cell phone plan after your initial purchase? See if you are spending more than you should be and if your cell phone provider is giving you better deals now. Do the same for your broadband connection as well.
Use Apps That Give Coupons
Try using apps like Freecharge and benefit from coupons every time you need to recharge your phone. You can get deals like cash back or 50% discounts on your phone recharge bills.
Do Not Upgrade Your Tech Toys Till After Your Holiday
Apple might have launched a new iPhone or your laptop is desperately out of date, but it might be best to pause and think about it. Do you need it immediately or can it wait until after your vacation? Warren Buffet might not have been talking about saving for a vacation, but he is right when he says, “Do not save what is left after spending, but spend what is left after saving.”
Pay Your Credit Card Bills on Time
Mark your calendars and put reminders on your phone so that you are not late on your bill payments and do not have to pay late charges and interest on your expenses. If you are a MoneyTap user, your app will send you reminders on your app for when your due date is. Do not pay just the minimum amount due, try and pay as much as you can at one go. If you are unable to pay your monthly credit card dues and are piling up on high interests, a debt consolidation loan is a great option where you later on just pay the EMI’s on one loan.
Shop Online And With Discounts
Whether you are shopping for your flight tickets, hotel rooms, winter wear for a ski vacation or need to buy some good quality suitcases, shop using comparison shopping websites like MakeMyTrip, Junglee, Smartprix, etc.
Plan The Timing of Your Holiday Wisely
Remember that there are peak holiday periods when flights and hotels both hike their tariffs. It is always better to travel in off season when you are travelling on a budget.
Borrow Funds Carefully
If you must borrow funds to make your vacation dream come true, avoid credit cards or payday lenders. Both these options are worthy of your attention only if you are sure you can pay off the balance in one shot. Otherwise, the interest rates are too high. It is worthwhile either looking at a personal loan for travel with your bank or trying the MoneyTap app to see if you qualify for a personal loan just over your phone and getting yourself a credit limit (like a credit card) but with the significantly lower interest rates of a personal loan. MoneyTap will also provide you with a card to allow you to swipe for purchases and will let you transfer money from your app to your bank account with the tap of your finger.
A generation ago, travel abroad was something people would save for years and years to do. It was a retirement plan for the lucky. Now, we have at our disposal great options that have made saving for and financing vacations easier. We now can choose cheap flights, get cheaper loans, shop at discounts and do so much more thanks to all the technology at our fingertips. Save wisely, plan well with these money saving hacks and your dream vacation will be well within reach in no time.
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