While you may have read travelogues, and decided all that you are going to do on your dream holiday, you need to plan every detail wisely.
Mostly all of us have our dream vacation all planned. There is just one small glitch; we struggle to save the funds for turning this dream into a reality. Saving up for an international holiday is much tougher than just putting some money aside from your income every month. It requires deep thought, strategic planning, and of course determination. Here are seven helpful tips on how you can fund your dream holiday quickly.
Set the deadline
Yes, it’s not just your work that requires deadlines. You need to have one for funding your dream holiday as well. Unless you have one, you will never be able to keep your savings on track. Once you have a date to stick to, you can decide on how much to save every month accordingly. Otherwise, you might end up spending your savings on things that might seem more lucrative in the short-term.
Decide the budget
You need to set the budget for your dream vacation. The first thing you should do is set up auto-withdrawal of a certain amount from your primary account to a holiday saving account. This can also be in the form of short-term recurring/fixed deposit also. It will help in better organizing your monthly savings. You will also be able to track your progress towards reaching your target budget along with ensuring that you are right on schedule!
Get smart about daily expenses
Relax! We are not asking you to stop making weekend plans with friends. All you need to do is get smart about daily expenses. Let’s see, what if you start packing homemade lunch to work instead of eating out every day? You end up saving a decent amount of money while also developing healthy eating habits. Similarly, you can save by switching to an economical cell-phone plan. Doesn’t seem very useful? Wait till you see the bills at the end of the month, you will realize that you have saved much more than you imagined.
Keep an eye on discounts
Start shopping online. These days, e-commerce portals offer huge discounts almost daily and you can save big on your shopping expenses. If you are more comfortable with offline shopping, you can still save by shopping during sale season. Even while doing your grocery shopping, if you are alert enough, you will find many good deals on products you use.
Coupons earned on transactions you make in your daily life can also help you secure some discounts. Not only that, you might also come across a great offer on flights and hotels, which will make your dream holiday easier to fund.
Avoid paying any late fines and extra charges
These are small things that we never realize are eating into our monthly income. Remember to pay all your credit card bills and EMIs on time so that you do not have to pay late charges or additional interest on your expenses.
Keep a money backup
While it is important to save, it also makes sense to have a money backup. Just in case of an emergency that might require you to spend all your savings, you can still fund your dream holiday with this backup. For example, you can secure your own app-based personal line of credit. It does not require any collateral and there are no additional charges if you do not actually use it.
While you may have read travelogues, and decided all that you are going to do on your dream holiday, you need to plan every detail wisely. For instance, the timing of the holiday can have a huge impact on your budget. Try to plan while it is off-season so that the fares and hotel prices are not hiked to unreasonable amounts. Also, book flight tickets much beforehand, so that the fares are affordable.
A generation ago, traveling abroad was something people would save for years and years to do. It was a retirement plan for the lucky. Now, we have at our disposal great options that have made saving for and financing vacations easier. We now can choose cheap flights, get cheaper loans, shop at discounts and do so much more, thanks to all the technology at our fingertips. Save wisely, plan well and your dream vacation will be well within reach in no time.The writer is Co- founder of MoneyTapYou can now invest in mutual funds with moneycontrol. Download moneycontrol transact app. A dedicated app to explore, research and buy mutual funds.