When you spend time planning, there will be more time to enjoy your free time and relax. For many, spending increases during the holidays, so it may pay to make a separate budget for the summer months. It also pays to think about how you finance your summer. Remember that what is produced on credit must also be repaid with interest and service fees. With the following tips, you build up and keep your holiday budget.
A good tip to start with, which is not directly about traveling cheaply but is still essential, is that you should try to save money for your trip in advance. If you expect to go away in the summer or would like to, you also have something specific to save money. A trip is also enjoyable, so it might be easier to save money for one than for something else.
How big is the holiday fund?
Start by charting how much you must move around during the holidays. According to Nordea’s survey, the average holiday budget of Finnish households was 1450 euros in the summer of 2018. It is moderate, and everyone must start with their financial situation. Someone spends more, another less. The main thing is that you do not live on your assets and do not overestimate the available resources, and do not underestimate your expenses.
By what means do you finance the holiday?
Some save up for a holiday fund. Someone else receives holiday pay, and a third uses the salary income. If you look at the statistics from last year, 15 percent of Finns planned to finance their summer at least in part with borrowed money. If we do not plan and make a holiday budget, the risk increases that we spend more money than we originally intended, increasing the temptation to take out a loan for the rest of the holiday. Before you choose to pay by credit, it pays to think about how it feels to open the credit card invoice as it dims through the post office on a rainy September day. The day of payment comes sooner or later, and then you also must pay interest and service fees.
What do you want to do during the holidays?
Once you know what resources you must move around with, it’s time to think about how you want to spend your money. Generate a checklist of items you wish to perform and a cost estimate for each. When you look at the larger picture, it can be easier to select what appeals to you the most and is most cost-effective. Also, remember that not everything has to be expensive to be enjoyable and soothing. How does it sound with a bike ride to the neighboring town with friends? It will be extra fun if you plan and prepare a lunch bag together to take with you on the trip.
Discuss with others what you will spend the holiday with
In situations where several people are involved in the holiday celebration, it can be good to discuss before starting the planning work. What are the expectations of everyone on holiday? What budget do you have to move? There may be people who have different financial conditions in a larger group. To meet others’ expectations, it’s not a good idea to go into debt and fund your portion of the vacation on credit. Dare to say if you feel that the costs are too high.
Make a status check in the middle of the holiday
Although it is a holiday, and it can feel not easy to pull out a budget sheet and receipts, it may be appropriate to make a position check. How much have you spent on the money you budgeted for the holiday? And how much do you have available for the end of the holiday? When you do a location check, you avoid exceeding budgets and unpleasant surprises. If you can save a little money every month for fun, you can try to save money that is earmarked for a holiday trip. Of course, how much money you need for the trip depends on what you want to do and where you want to go, so you can adjust how much you spend a little.
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