If you haven’t already started planning your summer vacation, now’s the time. With all the travel deals out there, vacation choices can be overwhelming. Thankfully, there are lots of trips to choose from that can work within your budget. The trick is to do some simple financial planning in advance. It won’t take long and it’ll ensure you’re able to truly sit back and relax in the sun and not come back with a ton of debt that could change your holiday memories into holiday nightmares.
Here are a few tips to get you started:
Create a budget
Make a budget and stick to it. Be realistic. As well as including lodging and transportation expenses, consider dining, groceries, attractions, souvenirs and presents. Don’t forget to allow yourself a contingency fund for those "just in case" moments.
Choose a destination you can afford
This may sound like a no-brainer, but you might be surprised how many people vacation beyond their means. Think ahead – what are your financial priorities for the year and how much can you spend on a vacation while still serving those priorities?
If you can’t afford a vacation, consider a 'staycation'
If you don’t have the funds to travel to an exotic destination, consider taking a road trip or a staycation instead. A day or more dedicated to enjoying yourself at the beach, museum or spa may be exactly what you need. Block off some time and go “off-line” without your phone or computer. Discover your own town by doing something that you wouldn’t normally do, whether that’s taking a canoe out on the lake or seeing a local play. Search your local event calendars for events. Many are inexpensive or free.
Eat cheap
If you want to streamline your travel budget, start with being choosy about where you eat. Part of the pleasure of travel is the dining, but fancy meals don’t make sense every single day. Food carts and street vendors often sell fare that’s just as delicious and authentic, and grocery stores are an inexpensive place to discover local specialties.
Search out travel discounts
Lots of travel agencies, coupon purveyors and transportation companies offer travel deals. The trick is to catch them, because they’re often only on offer for a limited time. Sign up for email alerts from travel deal companies. There are so many out there and their deals may save you hundreds.
Take care of your bills ahead of time
You don’t want your phone company to cut off service or your credit card to start charging major interest. Anticipate the bills you’re going to need to pay and cover them before you go, or ensure you have automated payments set up online.
Check exchange rates and foreign withdrawal fees beforehand
Bank withdrawal rates abroad can be exorbitant. Inquire at your local financial institution to find what withdrawal method will be the least expensive and most convenient. And always carry some cash so you don’t get caught out.
Ensure you’re covered
Travel insurance is definitely worth it. Having to pay for a hospital bill or rental car repair in a foreign country can be far more costly than buying the insurance coverage beforehand.
Pay off credit card expenses
Once you’re back, pay off any credit card balances as soon as possible to reduce interest costs.
The common thread in these tips is to plan ahead of time. Knowing how much you’re able to spend will leave you free to let loose and enjoy your trip.
Happy travels!
Kathy McGarrigle is chief operating officer for Coast Capital Savings.