How To Finance A Family Vacation

May 21, 2018

Vacations are essential, as it is a time that many people want to recharge their batteries, disconnect from the monotony of their work, see new places, and spend time with loved ones. Although, a holiday is associated is rest, it also involves spending money. Indeed, going on vacation is not very economical: transportation, hotel, food, and tourist activities require a budget that can be much higher than you are used to in your day-to-day life. So, what is the best way to finance a vacation without spending all your savings? Here are a few tips:

Set A Budget

How much money do you need for the trip? Calculating the individual budget you need for a journey is essential but also complex. Various items are to be considered, such as the costs before departure, as well as during the time spent away from home. You will need to look closely at your travel destinations, calculate the budget required for the whole trip and then look at how and in which time period you can save that amount. The cost before departure includes not only the immediate travel services, such as the airline ticket, pre-booked accommodation, and tours, but also vaccinations, travel documents, equipment, and insurance.

To find out how much you could spend on that trip, you should also do a previous investigation on the destination. Look out for offers from the respective country that you have chosen, such as coupons, to compare what may be economical or expensive. There are also handy travel tools and websites that help you budget for a holiday such as TripAdvisor, which also lets you know approximate how much you can spend by reading online reviews. With this, you can already establish a daily average of consumptions. Then, add the cost of tickets and then check on the different travel pages how much the stay can cost.

Consider A Loan

With a loan, you can make immediate and unlimited plans without worrying about your financial situation. There is no fun in going on a holiday that is limited by money. Many loan companies offer flexible payment options such as Bonsai Finance. Credit cards can also be usedas an additional emergency fund to get you out of trouble, in case you come to present an unfortunate situation.

Travel Credit Cards

Another way of financing this holiday period is by using a travel credit card. This is one of the favorites for most people in the world: first, because they can find some discounts, depending on the partnerships with hotels or airlines, as well as having the ease and immediate availability of the money that is being offered.

Choose A Tour Operator That Offers A Flexible Payment Plan

If you are lucky, there may be tour operators in your area that have good financing options available, but this option will require you to do further research. Remember that the tour operator will make a corresponding credit check, as it must be ensuredthat you can pay off the monthly installments. Unlike a car or real estate financing, the tour operator has no collateral here. After all, a car or a house is still there after the financing, but the money from the travel loan has long since been spenton vacation. Financial institutions also attract travelers with super offers, but these are often decoy offerings. This best interest rate gets only someone with the best credit rating.

Crowdfunding Maybe?

Crowdfunding means the financing of projects by supporters from the internet. Anyone who has an idea and a concrete plan for implementation can present his or her project on various crowdfunding platforms. Believe it or not, there are many people who have successfully used this option to fund their family travels. However, their holidays may have to include unique ideas to attract sponsors. It means you will have to include a personal write up about you and your family and why you feel their money will help your cause.

Unlike when donating crowdfunding supporters get for their contribution to a pre-agreed consideration, which varies depending on the amount of funding. Other crowdfunding travelers plant trees with a personal dedication to the sponsor on the route. So, if you are going on a unique holiday with your family, you can consider this option.

Try Saving Long Term

There are many ways to save for a holiday. Begin by making plans in advance and establish the location and the amount of money that is needed. Although few people actually take the time to do this unless it is a great trip, however, a strategy is useful for any destination, for any season and with any budget.

When you start saving will depend on the duration of your trip and destination. Depending on how many people you are traveling with, and if it is an international trip, it is advisable to start saving one year in advance. On the other, if it is a small vacation, you can consider it three months in advance. This is the sufficient period with which you can adjust your budget, without having a greater impact on your life or without making large cuts that could affect your daily life.

Best Ways To Save Long Term

  1. Make weekly, non-monthly contributions. This may be easier for you to handle.
  2. Remove from your budget everything planned for outings with friends, small getaways, and technological purchases that can wait. Everything else should go directly to your holiday fund.
  3. Put in more hours at your job, so you can make extra money. This money can be put in an untouchable savings account or a place that you cannot access or use at any time. You can also save in an independent account and schedule automatic transfers, so you do not have the excuse that you forgot to save. After this, and every time you feel far from your goal, look at the photos of your destination to stay motivated.

Be aware of unforeseen situations such as variations in the exchange rate or other news and economic projections, so that you do not take surprises, a year later, that the dollar is more expensive than you estimated.

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Andi Perullo de Ledesma

I am Andi Perullo de Ledesma, a Chinese Medicine Doctor and Travel Photojournalist in Charlotte, NC. I am also wife to Lucas and mother to Joaquín. Follow us as we explore life and the world one beautiful adventure at a time.

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