5 tips for saving for a stress free holiday

Adhil Shetty

The idea of planning an annual family vacation has almost become a lifestyle of the young Indians now. There is no doubt that having a vacation is one of the best ways to rejuvenate and pay for the hard work of all the other days. But there are many people who do not make full use of vacations as they are always under stress and worry about the expenses incurred and their budgets while out travelling. There are some others who spoil their savings after a long vacation without proper financial planning.We know that you have less time to chart out and think for a well planned holiday. But, there are some financial essentials that one should keep in mind for a stress free holiday. Let us see the five most significant financial tips that one must take into account when planning for an upcoming holiday. Estimate the Expenses Beforehand:  Before getting down to use various tips and tricks to create a travel plan corpus, it is essential to understand the quantum of money required for the travel plan. Figure out the fund that you can create without stress and explore various options within your budget. Make a complete and realistic list of all the expenses including tickets, boarding and lodging, sightseeing tours, travel insurance, shopping and other travel related expenditure. A hotel room for example which might be close of Rs.5 000 today may get escalated o Rs. 6000 by the time your travel plans materialize. It is always a good idea to keep a fixed sum of money to counter for any inflation or miscellaneous expenses or emergencies. This saves you from any last minute surprises.Create a Travel Corpus Fund: Creating a travel corpus fund is an essential part of every travel plan. No matter how much money one earn, it can be difficult to take out a lump sum of money and divert it towards travelling expenses. On the other hand saving a small amount of money each month for an annual travel plan is by far a simple and effective way to create a travel corpus without being stretched financially. One can opt for a systematic investment plan for one year in a safe financial instrument like a debt fund to create a perfect corpus for the annual travel plan. Rather than saving money each month in the bank, investing the same in a debt mutual fund or a one year may give better returns allowing for a far easier annual travel. Everyone has a set of fixed monthly expenses like home loan EMIs, monthly expenses towards home, fuel expenses and other miscellaneous expense. So a little bit of planning will help you to save a lot. Weekend getaways like dinner or dining out in an expensive restaurant can be replaced by dining at home or spending time with family at home while saving money for the annual vacation plan. The money thus saved each month can be allocated towards the annual travel plan thereby ensuring that the travel fund is accumulated before the travel date allowing for a peaceful travel plan. Keep a Watchful Eye: You have planned for a summer vacation, and that doesn’t mean you search for options a month before. Search of all related airline discounts and other seasonal offers, at least 6 months before your travel date. Now a day, many airlines are offering attractive discounts for limited periods, which are selling very fast like hot breads. So take out some time to keep updated about travel schemes, or stay subscribed to some travel newsletters, if you are a travel lover.

Carry less Cash: You might have a lot of expenses as you travel, but always keep very less cash in hand. Instead, try out options like travel cards, mobile wallets etc, which will help you to travel stress free without getting anxious about the money in hand. Check with your bank for options like pre-loaded travel cards, which can be loaded with the amount that you would be requiring for miscellaneous expenses at the destination. Also do check if the card providing by your bank can be used at the ATMs of your preferred destination. And finally, don’t forget travel insurance: You may think about travel insurance as an unwanted expense, as you are an optimist, but anything can happen. But it is a good idea to be on the safer side always. You may have to shed a small amount for travel insurance, but it will save you from any possible unwanted expenses like medical expense, loss of baggage etc. while you travel, making you completely stress free.