Although we’re somewhat in vacation mode after almost three years of Covid-19, now is the time to start the planning process.
Canadians spend an average of $2,573 on vacations each year to get away to relax or visit relatives.
Our vacation to the UK and Spain in 2017 for two adults and one child under three we spent around $10,000.
We’re still contemplating whether we want to travel to see my parents and family this year.
This makes travel one of the single largest annual purchases for an average household.
With such high costs associated with travelling for a holiday, plans and budgets have to be made to avoid running out of money while on vacation.
While it is prudent to save money, adding one or two revenue streams is also important to build a holiday account.
Today, this article outlines a healthy mix of the two as one plans a vacation.
Open A Bank Account Specifically For Your Vacation
Research on all the costs likely to be incurred before purchasing tickets to go on vacation.
One will predict the costs accurately, leaving room for miscellaneous expenses.
Trust me; you’ll need some miscellaneous expenses along with understanding the currency if it’s not Canadian dollars.
Create a savings goal depending on the expected dates of travel.
For example, if the trip is expected to cost $3,200, with an expected departure date in 8 months, one can plan on saving $400 every month or $100 every week.
It would be worthwhile to open an online account, making it easier to deposit the money and avoid unnecessary withdrawals quickly.
If you’ve followed the blog, you know that we call these projected expenses.
We save money each month until a purchase is due or we’ve met a savings goal such as a holiday.
Create A Side Hustle To Build Your Vacation Fund
This will enable one to reach the financial goal much sooner and more easily.
An extra shift at work, waiting tables, dog walking, and babysitting are simple ways of making additional income.
You could even start a blog and watch your side hustle grow and earn you extra cash.
This will also make the trip more desirable because of how hard one will have worked for it.
Selling one’s items will not only go a long way in funding the trip but is also a sure way to declutter!
Use Your Skills to Earn and Save Money
The gig economy has made it possible for early adopters to make money at their convenience.
In addition to a 9-5 job that one may have, self-taught skills can hasten to save for the vacation.
From online freelancing websites to taxi services like Uber to online casinos services like Comeon Casino Canada, skills will always make it easier to make money.
Reduce Expenses To Build A Vacation Fund
When budgeting and saving for a trip, cutting down expenses helps as much as looking for new revenue streams.
Retail therapy, a camouflaged term to refer to impulse buying, is a sure way to bleed out one’s bank account.
Avoiding such shopping, at least in the near term, will assist in accumulating funds for the trip.
Meal planning will also help reduce unnecessary expenses,
While the habit of cooking one’s own meals may take time to cultivate, in the long run, one not only benefits financially but also health-wise. A wonderful example of hitting two birds with one stone!
Set Travel Dates Early
Setting travel dates early has the advantage of booking the best seats (travel) or rooms (accommodation) and paying for travel expenses cheaply.
You may even find the best travel deals online; however, some people find cheap holidays last-minute.
Expenses When Planning Your Vacation
These are some of the expenses that should be considered when planning for a vacation:
- Passport and Visa – this will depend on where one lives and where they are travelling to.
- Travel Insurance – while this is not a strict requirement, it would definitely be a good idea, especially for those travelling long-term.
- Vaccinations – this will depend on the country to be visited. Research is needed to avoid delays at the airport.
- Travelling gear/luggage – this largely depends on how long the stay is expected to last, and sensitivity of the items carried for example, cameras, laptops, money, etc.
- Transportation – this includes the cost of air tickets, airport transfers, and short distance travels during the trip
- Accommodation & Food – this will vary greatly, depending on the time of year and comfort levels one is accustomed to.
- Activities/Souvenirs – a clear itinerary will outline all the expenses that will be involved
- Emergency/Miscellaneous fund – this will come in handy during the unforeseeable but unavoidable scenarios that we hope never happen.
Vacations are meant to be moments of joy and happiness all around. A proper vacation budget is guaranteed to make this happen.
Discussion: Where are you travelling to next and how much will it cost you?
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