How not to blow your budget when you are on holiday

Published on November 26th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Aussies love going on holiday and we sure know how to treat ourselves while we are on holiday. However, it appears that we go overboard when it comes to holiday spending which results in Australians coming home with a holiday debt. You can use these six tips for the next time you go on holiday to avoid coming back with an unwanted financial souvenir.

Set a realistic budget

You know what type of spender you are. Therefore, having a budget that caters towards your specific needs is essential. According to new research by Commonwealth Bank on holiday spending, Australians overspend $4.6 billion after travelling to their favourite destinations for a holiday. Creating a realistic budget means thinking ahead in terms of calculating the cost of accommodation, food, drinks and spending money you will need.

Start saving

Planning your trip comes with the perks of giving you time to get your finances in order. Opening a saving account for your holiday expenses can help you avoid overspending. Saving for a holiday is the leading reason why 53% of Australians with savings account save. It can also help you gather enough spending money to purchase all your little treats to spoil yourself without the guilt. There are many ways to cut down on your current spending to help facilitate your spending when travelling time comes.

Get a card right for you

Getting a card that matches your spending habits is also one way to help avoid having a financial hangover when your trip is completed. A credit card that comes with the lowest interest rate is ideal, but always ensure to check the fine print and compare. Some credit cards come with a low introductory rate that can revert to higher rates. If you are planning to travel overseas then a 0% foreign transaction fee will be a great investment in terms of lowering your expenses.

Track your spending

It is easy to get lost in the relaxing mood that a holiday gives you which also makes spending money easier. Commonwealth Bank found that 36% of Aussies that go on holiday do not keep track of their spending each day. Tracking your spending doesn’t make you a miser, but it helps you see where your money is going and if you are still sticking to your budget.

Make cuts now, relax later

It is hard cutting back on a few things that keep us happy throughout the week and weekdays. However, making cuts now can help you reach your saving goals and enjoying every bit of your holiday without having to make cuts when you come back from your holiday. Instead of buying your lunch or a cup of coffee every morning you could save the money. You could also opt to stay indoors on some weekends to help you save.

Time your vacation

Who wouldn’t want to go on holiday ‘as in now?’ But you will soon realise that delayed gratification comes with major ways to cut down your expenses. You can time your trip in time with discounts that will help you to save but also enjoy what you have been longing for at half price. It might require a bucket load of willpower to get it down, but it will be worth it once you have achieved it.

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