5 Tips to Avoid Vacation Budget Busters

Blog Posts, Travel Blog | 0 comments

TBWA Budgets

It’s time for summer vacation! How much will that cost? Here are 5 tips to avoid vacation budget busters. Planning and enjoying a fun and budget-friendly summer vacation is more than choosing an inexpensive hotel. It’s all about planning, preparation and financial knowledge.

Here are steps to keep the budget busters from taking a bite out of your summer fun and your financial security.

1. Save early
Start ahead of time putting aside money specifically for your vacations, special events (graduations, anniversaries, birthday celebrations) and a bit for emergencies too.
A small amount each month goes a long way over time. Before you know it you’ll have money for cash spending instead of charging credit cards with their big hefty fees.

Include in your budget the costs for food, transportation, excursions, activities, accommodations, clothing, gear, travel documents (visas and passports), gifts and a “little bit extra!” for any unexpected expenses.

reviewing

2. Cash vs. Credit
Cash – It can take a long time to save enough to pay for several vacations totally with cash, but having a hefty amount of cash saved for travel is a good idea and should be part of your budget planning.
However, having large amounts of cash on you while on vacation is not a great idea. Invest in a money belt or pouch which you wear underneath clothing. And, do not put all of your cash in one place.

When choosing a hotel, select one with a safe / lockbox in your room. Select a code that’s easy to remember and share it with your travel mates staying in the hotel room with you.
Place cash that you will not need during the day in the safe.
Purchase travelers checks. Once they were very popular, but you don’t hear much about them today. They are safer than credit cards and cash and can be replaced if stolen.
Exchange small amounts of money when traveling internationally. You will loose money converting back and forth between currencies.

Use cash for small purchases, quick bites to eat and for transportation.  No need to add to their costs with credit card fees.

Credit Cards – Charging travel expenses to a credit card can take a long, long time to pay off. During that time you are accruing interest and fees that add up, increasing the real cost of our vacation up to 30% more than you thought. Because most people pay their credit card bills in small amounts over time, you can lose sight of how much you’re actually paying for the five-day cruise to the Caribbean.

Paying with a credit card can also change your credit score, and missing payments can wreck havoc on your credit history and score putting you in jeopardy for future purchases.
Place a notification on your credit cards – you will be notified if an unusual charge is made. For example, you can choose the amount to any charge over $500 for one purchase you are notified. The charge will go through, but you’ll be notified – just in case it’s not your charge.

Credit card – then cash – you can also place charges on your credit card and use the cash you have saved to pay off the charges as soon as you return, avoiding interest and fees.

7K0A0259
3. Payment Dates
Who likes receiving a bill in the mail. No one, but it’s a part of life and staying current on your credit cards is key to not busting your budget and destroying your credit rating.
Avoid late fees – they only add more money to what you have purchased.
Schedule auto-pay – no worries and no stress and it’s paid! How great is that!
Check balances before going on vacation to make sure you have enough “credit available” in case there is a major emergency while away.  Medical emergencies can be scary enough, so make sure you’re financially set-up for any emergency – from small to large!  Save space on a credit card – just in case!

7K0A0796

4. Cards with Benefits
If you’re using credit cards, you absolutely should be using ones with rewards, points and benefits.
You can redeem points for travel – which includes air, cruises, hotels and tours. If you’re already spending money on credit cards why not get something back.
One caution – do not use credit cards just for travel benefits – that can have a negative impact on your credit utilization ratio.  It’s amazing how your credit is monitored and what reflects on your credit score. Use cards wisely, but also get a few perks too!  Not so bad – right?
There are several different rewards cards to choose from. Do your research and see what will work best for you, your financial status and your vacation goals.
Look not only at rewards, but check interest rates, payment requirements and make sure all the details are clear.

IMG_1498

5. Know your credit score
Check your credit score periodically to keep up with what’s going on and to make sure there are no mistakes.
Add security alerts to your credit report. You will want to head-off any potential fraudulent activity right away.

7K0A0800
Your credit score not only determines credit limits but can also influence how much interest you pay too. More interest – more money from your budget. No budget busters!!

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Listen Live

Travel With Annita is on every other Saturday from 1-2pm

NATJA Awards