Need A Holiday? Here’s How To Finance It
Although holidays are exciting, they can also be a drain on your financial resources. However, with some intentional budgeting and some good planning, you can ensure that your much-needed holiday isn’t stressful. Below, we introduce you to some of the ways in which you can pay for your holiday to ensure you don’t need to worry about your financial situation when you come back home.
What can you afford?
While we’d all love to check into a five-star beach resort in Zanzibar, it’s not necessarily a viable option. Therefore, you need to begin your holiday planning by ascertaining what you can afford. Whether your holiday budget is £1,000 or £10,000, make sure you plan something that is within your means. You can search online for holidays that fit within your price bracket before refining your search when you’ve found a destination.
How are you going to pay for it?
When you’ve worked out your holiday budget, it’s time to consider your payment options. As we explain below, there are lots of ways to pay for a holiday:
- Savings: Perhaps the best way to pay for a holiday is to use money that you have already saved up. You will need to plan far enough in advance, so you have enough money in your account when your holiday comes around.
- Credit card: If the total amount of your flights and accommodation is too much to pay from the start, consider adding them to your credit card.
- Holiday payment plan: Depending on who you book your holiday with, you might be eligible for a structured holiday payment plan. This is a great way of splitting the cost into instalments.
- Personal loan: Applying for an unsecured personal loan is another great way of splitting the cost of your trip out over time.
Lenders like Koyo Loans provide unsecured personal loans to borrowers that can be used to finance a holiday. While it’s a great option, you also need to remember what you can afford.
You shouldn’t just take out a personal loan to fund a super expensive holiday just because you don’t need to pay it all off in one go. You should still work within your budget and use a personal loan as a way of spreading the cost of your holiday over a longer period of time.
What about spending money?
In addition to your flights and accommodation, you will need to think about various other costs associated with your holiday, including:
- Transfers or car rental
- Travel insurance
- Covid-19 tests and other vaccinations
- Spending money for meals and drinks
- Activities you plan on doing during your trip
It’s easy to fall into the trap of paying for your initial booking and failing to budget for other holiday incidentals. So, make sure you’ve thought about your trip in detail before settling on the best way to fund your upcoming holiday.
The key takeaway is that you can pay for a holiday in multiple ways, and you need to think about the best option for your current financial circumstances. We hope these tips will help you budget accordingly and plan a memorable holiday with your family and friends. No matter how you finance it, we hope you can rest, relax, and return home without worrying about the financial implications of going away.