Let’s face it, we’re all always up for a vacation! Whether you’re looking to lounge by azure beaches or inhale the pine-fresh scent of mountain air, there is always the urge to take a break away from the mundane and bring out your inner explorer. Unfortunately, the decision of a holiday usually hinges on one key factor – money. Even if you consider yourself a basic or budget traveller, it requires a certain amount of funds. And if you want to travel in comfort or style, then you’re looking at a sizeable chunk! Needless to say, exotic locations and international destinations may set you back by much more than a tour to your local hill station, but you shouldn’t let that deter you. Here’s how you can work towards funding and maximising your perfect holiday.
Start A Holiday Savings Fund
There’s nothing better than a good, old-fashioned travel fund to ensure you dedicate a certain amount of your income each month toward your travel plans. This can only fructify if you plan it out in advance and keep your travel money separate from everything else. ‘Starting a travel fund doesn’t just mean tucking money into a bank account,’ says Sakina Furniturewalla, a personal banker. ‘You could also look at investing it in a short-term FD, which will give higher rates of return, or even some conservative investments in the stock market. Determine how much money you’re willing to put aside for this purpose and stick to it – it could be on a weekly, biweekly or bimonthly basis. You can even automate your finances so that a portion of it goes towards your travel fund, and you’re not tempted to spend it elsewhere.’ Do your research and keep a ballpark figure in mind. Once you reach this sum, you’re all set to make your bookings and sail away into the sunset.
Apply For A Travel Loan
This may not seem like a smart thing to do, but a lot of travellers are applying for loans to go on their dream holiday. If you’d like to explore this option, there are several factors to consider. Firstly, you have to be certain of your budget, which should include accommodation, tickets, food and other expenses. Always keep a little buffer in mind for contingencies. Says Sakina, ‘Once you’ve got a number in mind, check on interest rates. These may be higher than other kinds of personal loans, so make sure you’ve read all the fine print before you take the plunge. Consider your EMI options as well; do you have the wherewithal to pay a large EMI over a short period, or a nominal EMI over a greater period? You will have to budget and prioritise loan repayment, while also ensuring you don’t incur any additional debt during this period. Besides banks, travel apps are also offering such deals to travellers who book through their websites, but you should apply for them only if you’re absolutely sure it won’t derail your finances.’
Use A Travel Card
You can get more bang for your buck when you consider using a travel card. This is especially great when travelling abroad. For starters, you don’t have to worry about carrying loads of cash, or about your credit card not working. It also protects you from fluctuating exchange rates. Maximising the exchange rate is important, so look for ways to lock in a preferential one. Many of these cards are also multi-currency, which means you can travel seamlessly and hassle-free from one country to another by uploading several currency options onto the card. It’s also easier to keep track of your expenses on a travel card. Most major banks offer travel cards, so that you can block them in case of any theft or misuse as well.
Consider Insurance
This may seem like an added expense, but it is actually a safeguard against astronomical travel bills later on. Travel insurance is an investment that covers risks such as disruptions in the trip, loss of luggage or even hospitalisation bills. When choosing an insurance plan, ensure you are entirely aware of the terms, conditions, and limitations of the coverage. This way, you’ll be forewarned and forearmed.
Protect Your Financial Data While Travelling
Lastly, keeping your financial information safe is an underrated but vital measure that you should take. Cyber security consultant K Subramaniam says, ‘When travelling, always use a VPN to encrypt your connection and protect your information. Avoid using open or public wi-fi networks, no matter how tempting it might seem. Carry enough cash or use a travel card whenever possible, to avoid using your debit card or visiting an ATM. If you must use a card, a credit card is safer. Make sure your passports are all secure and protected, and that your bank notifications are in place so that you’re immediately informed in case there is any suspicious activity.’
If you’re prudent with your finances before, during and after your travel, then planning a vacation needn’t be a daunting process. With some financial planning and consideration, your dream holiday can become a reality!