- Examine your and your travel partner’s finances to determine how much you can/want to spend on the trip
- You could invest in suitable Endowment plans, which are ideal for both goal-based investment and insurance purposes. They not only help you save regularly but also return a lump sum on maturity
- Conduct thorough research, compare the deals and opt for the one you think suits you the best
All of us have that one holiday that we wanted to do since forever. Funds are the major hurdle in planning the vacations as you do not take adequate measures to prepare it well. The question is- how do you budget this expense under the burden of increasing inflation and decreasing disposable income?
If you plan your finances judiciously, nothing can hamper you from taking that well-deserved break. Listed below are a few measures with which you can plan and execute your long-awaited vacation with enough resources at hand:
1. Set a budget: How much money would you want to spend for this holiday? Examine your and your travel partner's finances to determine how much you can/want to spend on the trip. As soon as you decide how much funds you want for the trip, you can start taking adequate measures to plan your finances accordingly. For instance, if your total budget doesn't exceed Rs 1.5 Lac, you could look at traveling within India or Asian countries like Bali or Bhutan.
2. Comparison of Hotel prices: A significant chunk of expenses go into accommodation. Before booking a hotel, it is advisable to look for multiple hotels through multiple websites so that you can get the best deal available. If the hotels are falling out of the budget, search for alternate options like local hostels and rooms on rent.
3. Save from your monthly expenses: Though it sounds cliché, setting a household budget can help you save more money for your trip. Once you set a comfortable home budget, try saving from that as well. For example, if your monthly expenditure is around Rs 20,000 and you can manage the expenses within Rs 18,000 go ahead and keep the remainder for your vacation.
4. Alternative sources of income: Investment is advisable when you are planning finances for a vacation. Not only does it ensure that your sources of income have increased, but it also provides that you do not spend your extra money, instead invest wisely. Vacation goals like New Zealand/ Australia which are on the higher end of cost spectrum can be on your checklist too, if planned well in advance. You could invest in suitable Endowment and Money Back plans, which are ideal for both goal-based investment and insurance purposes. They not only help you save regularly but also return periodic pay outs and a lump sum on maturity. Now, this could fund a lavish vacation if you align the time of pay out to sync with your time of taking vacation. You can choose these plans based on your investment horizon, and how soon you wish to take that trip.
5. Research Yourself: Research thoroughly about the place you want to visit including its accommodation options, mobility, restaurants, and markets so that you have a fair idea of the expenditure involved in the booking process. Compare the deals and opt for the one you think suits you the best. By doing this, you save a considerable amount of money.
In short, there are multiple practical measures that you can take while planning the trip. Vacations do not give your finances a blow; instead, leave you rejuvenated and ready to hit the routine again.