The Easter holidays are here; and we sometimes tend to wake up to last minute getaways with family and friends. Spur of the moment and planned holiday getaways are always exciting; but if it is not budgeted for can pose a strain on your finances.
Your short and long-term goals will guide your savings behaviour and ensure that your budget allocation will be enough for your goals. “Save for the things that matter and reduce unnecessary expenses. Saving and budgeting appropriately gives you the opportunity to plan for the goals that you desire, need or want. The key here is to ensure that you stay within your budget and not overburden yourself financially,” says Ester Ochse, FNB Wealth and Investments.
Travelling is therapeutic. It’s great especially if you just want to unwind, spend time with your family or friends, learn about new places and is an eyeopener to people, cultures and destinations that you often read and see in the media.
She adds that, “Travelling is great but comes with much planning, research and is largely dependent on your budget and goals. The allure of local or international destinations should be enough to get you started on your savings goals. Sometimes you can pick up a travel package that includes everything you look for and sometimes its overly priced. The onus is on you to do your research and ensure that you have the right package to suit your budgeting needs.”
Budgeting for your holiday is just as important as budgeting for education or retirement. Be it for a short- term goal like an unexpected weekend away or a long-term goal like a trip to Disney World; your travel goals are important as they will help guide and encourage you to save. “Once you have decided where you would like to go, cut back on unnecessary expenses, be mindful of what you buy and be frugal about your savings towards your travel goals.”
Ochse says that, “Open up a travel fund which will help you stick to your goals. Include travel items like flights, accommodation, entertainment and if using your car, petrol. If you looking to visit an international destination consider flights, accommodation, visas (if necessary), travel insurance and other expenses like toiletries, clothing items etc.”
Being financially responsible with your savings will help set your travel agenda. “Like any other savings goal ensure that you save and build up a fund that will benefit you when you travel,” concludes Ochse.