Spending more than you can afford. That’s one memory that can leave a permanent stain on a potentially perfect vacation experience. The regret of vacation overspending can rival those sweet recollections of hotel stays, visits to famous attractions, and sumptuous meals.
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But we’ve found the way out. The following tips will help you outwit the overspending traps that vacationists frequently fall into.
Beware of the “Vacation Mindset”
According to financial experts, the “vacation mindset” is to blame for most cases of overspending. A vacation mindset is the excitement you get from stepping out of your daily routine.
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This excitement makes you lose sight of the future and focus on the thrill of the present. Consequently, they throw financial caution to the wind and begin to spend more than they can afford.
Do Your Homework Before Going Out
There’s one common mistake people who spend too much during a vacation make – they don’t get a lay of the land before packing their bags. What does this mean?
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It involves finding out the possible and estimated costs involved in a trip. These estimates help you determine what your spending limit should be like. In any case, however, the following tips will help you avoid those reckless vacation spending.
Defeat the Urge to Compete
You’ve probably seen pictures and videos of people who’ve had the time of their lives in your vacation destination. What you shouldn’t do is to compete with them.
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Your financial status should be your biggest consideration and we are all different in that regard. Don’t try to outdo your travel partners either. It usually ends with regrets.
Set Financial Boundaries and Priorities
Discussing with your travel partners before the trip is crucial. That’s the time to set priorities for the trip—a sort of scale of preference that has your financial strength in mind.
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If you are going alone, sit yourself down and be honest enough to know what activities are worth engaging in. This should come even before you set your spending limits.
Stick to Your Budget
A budget should be as comprehensive as possible. The bigger costs such as airfare and hotel, those little details such as transportation to and from fun venues, snacks, and drinks should feature in it.
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Most times, these seemingly inconsequential expenses make all the difference in your spending. We know it’s easier to draw a budget than to stick to one. But is anything impossible with discipline and determination?
Cut Down Cost
This involves giving every expense some deeper thought. You will find that there are cheaper alternatives to most activities that won’t reduce the thrill of the experience in any way.
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For instance, if you pay attention, you could locate a hotel that serves free breakfast or has a small kitchen area where you could make your own little meals. You can also go with a reusable water bottle and look out for free transportation.
Draft Out an Itinerary
Another way to ensure discipline in your spending is to draw out your itinerary. Draft a plan for where you should be at different times and days. This way, you won’t end up in surprise locations that will sap up funds from your pocket.
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Although free time and surprise events can add more fun to a trip, you must bring them to a minimum. Spontaneous spending can leave a huge dent in your budget.
Watch Out for Hidden Fees
Interestingly, most people only take notice of those large spending while ignoring the little ones such as the notorious hidden charges. A financial coach, Julie Everett, supplied some useful instances of these charges.
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“Some examples might be cleaning fees for your Airbnb, the cost to check your luggage at the airport, or port fees on a cruise,” she said. It’s a good idea to investigate possible hidden fees so you won’t be taken unawares when the time comes.
Learn About the Currency Market
If your vacation will take you out of the shores of your country, there is a good chance that you will need to exchange currency. To avoid being blindsided, you should be aware of the currency exchange rate.
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Also, your knowledge of the exchange rate should be up-to-date because the numbers change every day. Lastly, it’s cheaper to exchange money at local banks and ATMs than at the airport.
Use a Separate Spending Account
Once you’ve concluded your planning, you should be clear about how much you want to spend on the vacation. It’s wise to create a savings plan solely for the trip.
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In addition, consider creating a separate savings account for this purpose. The account will provide some restrictions on your spending, helping you spend without guilt.
Use Travel Reward Cards
Have you thought about travel reward cards? They are a good way to save significantly on your trip. You would be surprised how many points you can amass by using your credit card.
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All you need to do is search for the credit card that rewards you with more miles or travel points for every spend you make. These points can insulate you from a financially damaging vacation in the future.
