Winter probably seems a long way off right now, after months of beautiful sunny weather and a few weeks of tropical dampness. But if you want to pay less for your winter holiday this year, now is exactly the right time to start planning. We’ve got a few tips to help you make sure your holiday doesn’t cost you extra and create more stress than it relieves!
Use your credit card wisely
Putting your winter getaway on your credit card and then trying to pay it back later is a recipe for disaster. If you can’t pay the resulting bill in full, you could end up shelling out hundreds of dollars extra in interest – not only on the cost of your holiday but on everything else you put on your card as well.
However, paying by credit card is a great option if you have already saved enough money to pay it off in full on the due date. Many credit cards give you rewards points for your purchases, and some even offer free travel insurance if you pay for your plane tickets with the card. They also provide you with an added level of consumer protection under the charge-back system, which enables you to get your money back in certain situations. See this article for more information.
Plan well in advance
You can often pick up good deals on accommodation and flights if you book early. Organisation is key in the travel industry, and airlines and hotels like to lock in plenty of bookings well ahead of time to be confident of a good holiday season. Therefore, they often offer discounts for the early birds or throw in extras like free airport transfers or in-resort currency.
Booking early also helps you avoid the situation where your ideal flight or accommodation is sold out, leaving you to pick from more expensive options rather than having to settle for second-best. Generally, the most popular dates and places book up quickly, and although it is possible to grab last-minute specials, costs usually increase the closer you get to the intended date of travel.
Make a holiday budget
If you’ve got a dream holiday in mind, find out how much it’s going to cost and then set yourself a savings target. Once you’ve done that, review your finances and work out how much you can afford to set aside each month, then create a savings plan. Don’t forget to allow for extras like spending money, car hire, airport parking costs and travel insurance. Monitor your savings regularly to make sure you’re on track to achieve your goal. Sticking a picture of your dream destination somewhere prominent, like the fridge door, can help with motivation and momentum. Another great idea is to break your savings target into smaller milestones, and every time you reach one, treat yourself.
We really like what Sorted.org.nz have come up with, a tool that helps make personal budgeting simpler. We often use their tools as a reference for our potential clients to see for themselves where they are at financially and how much extra effort they need to put in for their holiday.
If you’ve got a must-visit holiday destination in mind for this winter, there’s no better time to start planning than today.
If you need help reviewing your finances to help those holiday savings grow faster, see what a SurePlan consultation can do for you.
