Going on holiday is an expensive business. Especially if you’ve got kids with you, or are going to a more unusual destination, costs can soon add up. It’s not just the travel and accommodation fees, either – chances are that you’ll also need extras such as new clothes and travel insurance too.
But with a whole world out there just begging to be discovered, it’s important to minimise the impact of the cost barrier where you can. Travel is an amazing experience, encouraging confidence, empathy and respect for others and the world around you. So how can you make it more affordable? Let’s take a look at some of your options for spreading the cost.
Buy now, pay later
If you’re confident that you’ll have the money to pay for your trip later down the line, a buy now, pay later (BNPL) option can be a good choice. It offers a level of spontaneity that means you can secure your dates in the sale, for example, but not have to have the money in your bank account right away. This can reduce the overall cost of your trip, as you’re able to book for a reduced price.
However, it’s important to remember that you still need to be able to afford the total balance. Just because you’re not paying now doesn’t mean you should spend above your means.
Create a monthly savings plan
If you want to make sure you’re able to take a trip each year but don’t have set dates in mind, why not put a certain amount of cash aside each month towards it? When your salary comes in, you can set a standing order to move some of the money to a savings account. You’ll be surprised at how quickly it adds up over time. At the end of each month, once your expenses are paid, you can also see if you have any money left over and potentially add this to the pot too.
Some banks also offer an option to round up payments on your card and put the extra pennies above the purchase price into your savings account. This can be a good way to save small amounts regularly, without even really thinking about it.
Use credit cards responsibly
If you’re a responsible spender, you may feel nervous about using a credit card – it can feel like tempting fate when you spend money you don’t yet have. However, credit cards can be a great tool for getting you to payday. In fact, 78% of surveyed individuals finance their travels with a credit card, according to research. You just need to be confident you’ll be able to pay them off, so make sure you have a plan before you spend.
If you’re a regular traveller, it’s well worth investigating credit cards that come with relevant rewards. Not only can you spread the cost of the trip, but you’ll accrue benefits such as hotel or flight points, which can reduce the amount you have to spend, or simply get you an upgrade you otherwise wouldn’t be able to afford. Some hotels even offer a free night for their loyal customers when you book a certain number of nights to start with, potentially allowing you to extend your holiday for only the cost of food and activities.
Spread out the booking costs
If you’re organising all the elements of your holiday yourself, rather than choosing a package deal, you have some more flexibility when it comes to payment. Whilst you’ll want to get your flights and accommodation locked in as soon as possible so that you don’t miss out, you may be able to leave activity booking until a few months down the line, so that you don’t have to cover all the costs at once. Some providers may also allow you to pay a deposit and then pay the remainder of your fees a few days before you travel, giving you a chance to save up.
Opting for self-catering rather than expensive all-inclusive breaks can also reduce upfront costs as well. It also gives you more control over what you spend, allowing you to cater your food choices to suit your budget. All-inclusive can be great, but usually only if you’re going to make the most of it with regular alcoholic drinks and big meals, so if that isn’t your style, you can easily cut some costs here.
Making travel more affordable
Working out costs and saving in small increments might not sound that exciting, but the experience they unlock is. Whether you’re craving a budget break or luxurious stay, there’s a whole world out there waiting for you.
Flamingo Photo by Vicko Mozara on Unsplash. Map Photo by Frames For Your Heart on Unsplash. Main Photo by Anete Lūsiņa on Unsplash.
