Planning for your Summer Holiday – have you got your finances in order?
Summer holidays are exciting but financially planning for it is a vital step.
Yes! – it’s the summer, and finally we can look ahead to those sacred two weeks off when we can jet away (or stay in the UK!) for a memorable summer holiday. Wherever you are planning to go, it is important to get your finances in order. This may seem like a boring step, but it is really important that you don’t just spend, spend, spend – because you will spend the rest of the year paying it off. Rising debt can lead to depression, stress, family problems, insomnia – all real issues that can be overwhelming to deal with and easy to avoid with a little forward plan and realism. Here are some tips for planning your summer holiday, without the post-holiday-pay-off blues!
We would all love to jet off to Hawaii for the holidays, but realistically, can you afford this? Some people choose to holiday in the UK because it can be cheaper, others search for last minute deals online. Think about the kind of holiday you want to enjoy, be it city-based, family-orientated or a beach break, and then do plenty of research into some locations that appeal to you. You’ll want to consider things like the journey time, how you’ll get there and how expensive it is when you are there. There will be large influencing factors such as, whether the resort is all-inclusive (this can mean you end up spending a lot less money when you’re there!) Think carefully about your decision, and be realistic about what you can afford.
Plan where the money is coming from
It is important to look at your finances and figure out where the money for this holiday is coming from, in advance of you booking it. Don’t be impulsive and book something without considering this vital point. Consider all costs, including any insurances you’ll need to take out as well as travel costs and spending money. It would be wise to use savings for a holiday, but if you do use credit, make sure you use it wisely. There are 4 pillars to your money fundamentals – debt, saving, investment and budgeting. This 9is useful when it comes to planning your holiday, and you should consider these pillars carefully. If you have any money working in investments, could you use any of that to help with your holiday costs – and is it worth taking it out now, or would the money be better if it stayed in the investments? Budgeting is also another pillar that you should consider carefully. How much will you spend a day? $50? £100? Look at the currency rates and give yourself a top limit.
Plan how you’ll spend money when you’re there
The Money Advice Service also says that you should consider how you will spend money when you get there – will you carry cash? Will you use a credit card? Paying by credit card is only a good idea if you pay off your bill quickly and in full – with cash you’ve already saved up. Otherwise, you could end up paying hundreds of pounds extra in interest. Also, some firms charge you a fee for using a credit card to pay for your holiday.
There will probably be a compromise involved when planning your holiday. For instance, you might find a resort that you love in Spain, but realistically can only afford one week there when you wanted two. Or, maybe you can move to a lower star resort and have two weeks there – whatever the compromise is, weigh up whether it is worth it.