Most of us have been staying close to home over the past two years. Even if we took mini-vacations in-country, we may not have felt comfortable or safe getting on a plane and going to some far-flung destination. However, with the pandemic more or less part of everyday life, a lot of us are ready to pick up where we left off, travel-wise.

With August just around the corner, it is prime vacation time. However, travelling overseas, although wonderful, can put a serious dent in our budget and savings, and also leave us settling outstanding debts months well after we have returned home. If you are planning to travel soon, here are some tips that will help you manage your finances, so that you not only have an enjoyable trip but are not left in (too much) debt when you return.

 

1.  Start Planning Early

Generally, travelling today is more expensive than it was two years ago, and so in order to be able to manage your expenses, it is crucial to start planning early. First, know where you would like to go, and what activities you would like to do when you get there. If travelling with a group or family, getting a sense of what each member might like to do is recommended, as it will inform the arrangements that may need to be made.

This is also the time to begin to figure out the types of expenses you may need to incur. For example, airfare, accommodations, vehicle rental, activity entrance fees, and meals. The more granular you can be, the better, as it will help you to map out all of what you hope to do whilst on vacation.

 

2.  Establish A Vacation Budget

Having determined your destination and some of the activities you would like to do when you are there, now you can begin to create a budget. Typically, your final budget will most likely be a trade-off between what you can reasonably afford to spend, and the prices for key expenses that you are likely to incur. So this is the time when you should start researching to get indicative prices for those expenses.

A tip to keep in mind is to add a bit extra to the prices you might be seeing currently, especially if your trip is months away. Items or activities may be more expensive when you are ready to purchase, and that extra cushion now can reduce the likelihood that you will be over budget from the outset.

 

3.  Ensure There Are Some Contingency Funds

Although you might have been quite diligent in budgeting for the big-ticket items, frequently it is the seemingly small, yet unforeseen expenses that can add up, and put you severely over budget. Examples would include:

• Checked baggage fees
• Bus and/or metro tickets
• Airport and hotel parking fees
• Airport departure tax
• Entry permits
• Entrance fees to attractions
• Resort fees
• Tips for service
• COVID-19 tests
• Replacements for items you forgot to pack (toiletries, medicine, etc.).

These expenses might be unexpected, or higher than you had budgeted for. So having some extra funds available in your budget to cover these costs would be highly beneficial and will relieve the stress you would likely feel when you return home and have to find the money to settle those expenses.

 

4.  Shop Around And Book Early

Generally, as one gets closer to their travel dates, prices for airfare and accommodation tend to increase. The travel season can also have a huge impact on prices. For example, travelling from temperate to the Caribbean or tropical countries tends to be more expensive in the colder months, which coincides with the travel or tourist high season. Further, travelling around popular holidays, such as Christmas, and Thanksgiving (in the United States) can also be expensive.

To try to get the best deals, it is important to shop around and book early. There are websites that specialise in offering discounted flights and accommodations in particular. Also, if you are prepared to be flexible with your travel dates, or the number of stops whilst flying to your final destination, could also result in cheaper airfare. However, it is emphasised to do your research, and ensure that you are dealing with reputable companies and that there is scope for redress, should you be unhappy with the service received.

 

5.  Take Advantage Of Air Miles, Reward Points And Other Travel-Related Benefits

If you have been a frequent traveller, the odds are that you have joined a number of loyalty programmes over the years. Many airlines and big hotel chains have them, and reward points are accumulated whenever you use their services. Many credit cards also offer travel or reward points that could be put towards the purchase of airline tickets, and other travel-related expenses.

Although many of us are accumulating reward points as we go about our daily lives, we tend to forget that we can use those points to offset some of our vacation expenses. So when getting ready to make travel-related purchases, do remember to check the various loyalty programmes of which you are a member to see whether the points you have can be applied to some of your travel expenses.

 

6.  Keep Your Expenses In Check

Finally, and when you are on vacation, remember to keep a tight rein on your spending. It is easy to get caught up in the moment, and splurge. However, the blissed-out feeling of a vacation can be quickly eroded by the stress of figuring out how to settle all outstanding debts when you return home.

If you absolutely must have ‘that thing’, before you swipe that credit card, do give some thought as to how you might pay for it when payment becomes due. It is crucial that you are honest with yourself, and are keeping track of all of the expenses – both planned and unforeseen – you have incurred so that you are not surprised by the final tally when you get back home.

  

  

Image:  Rudy and Peter Skitterians (Pixabay)