Your year-end holiday doesn’t have to result in a financial hangover in January. With the right amount of planning and budgeting, you can spread the costs over a few months.
Holidays are an important time to rest, relax and spend time with the family and there are just two and a half months to go before 16 December, which marks the start of the South African summer holidays. Work grinds to a halt as millions of holiday-makers take to the roads and skies as they embark on their annual family holiday.
A little bit of pre-planning can help prevent a tough month in January. We offer these tips to help stay financially sound during summer:
Create a budget
Work out how much you can afford to spend on your holiday. Remember to factor in all the costs, including travel, accommodation, food, day-to-day spending, and tourist attractions. If you’re driving, don’t forget to factor in fuel costs and toll roads.
Book your flight
If you’re planning to fly, try book and pay for your flight this month as the earlier you book, the less you pay. Use your credit card to book the flight to benefit from free insurance. If the airline goes under before you fly, you’ll be reimbursed. You also receive free travel insurance. Make sure you read the terms and conditions so you know what you’ll be covered for or if you’ll need to boost your cover with a top-up. Make sure you pay your credit card in full at the end of the month or, even better, put the money into your card before spending.
Book your accommodation
In most cases, you only need to pay a 50% deposit for your accommodation, with the balance paid the day you arrive. This allows you to spread the cost over a few months. Airbnb has created a great opportunity for budget holidays, creating much-needed competition to the tourism industry. Self-catering is another cheaper option, unless not having to cook is your idea of the perfect holiday.
If you’re travelling overseas, you reduce your currency risk significantly by paying for your accommodation and car rental now.
Pre-book tourist attractions
Many major tourist attractions allow you to pre-book tickets online. This means you can book and pay in advance and this often gives you the chance to skip the queue. Many tours, attractions and even events offer discounts on online bookings.
Plan for day-to-day spending
Start putting money aside for your day-to-day expenses. If you have the discipline, you can start building up a credit balance on your credit card. Alternatively, you can transfer funds into a savings account linked to your bank account. If you have children, get them to start putting some of their pocket money away for the holiday. The whole family can start a holiday money jar for loose change that’ll be used during the trip.
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