How not to break the bank on your holidays

Words Luke Talbot

Whether you’re flying to distant destinations or driving somewhere closer to home, holidays should be fun, relaxing (or invigorating if that’s your thing) and with memories that will keep the dream alive at least until the next holiday. What you don’t want is the pain of overspending.

With some creativity and smart planning, you can have the trip of your dreams without breaking the bank. Here are some tips to help you finance your next holiday.

Set a budget

If you’re a seat-of-the-pants, go-with-the-flow traveller, this may be where you become unstuck. So it's important to determine how much you can afford to spend. Factor in a dollar amount for the odd impulse buy or for that excursion you didn’t know you wanted.

Save early

The earlier you start to save, the smaller the amounts you’ll need to put aside each week or month. Alternatively, the more you can put aside over time, the bigger your holiday budget. Either way it will give you a solid foundation for funding your trip.

Use rewards programs

Planning ahead makes it more likely that you can use your frequent flyer or reward points or even cashback offers on purchases made using a credit card. Use them for travel expenses such as flights, hotels, and activities.

Look for deals and discounts

Do your research (or ask a friend who loves doing that stuff). Take advantage of holiday packages, discount codes and special offers.

Consider alternative accommodations

Expensive hotels and luxe pampering can be a holiday dream but consider boutique hotels or bed-and-breakfast stays, farmstays, hostels, glamping or camping as great alternative experiences.

Seek funding from friends and family

No, we’re not suggesting you borrow from them. But you can pool your resources and split costs if you have a large group going on a trip together. It lets you share accommodation and car hire costs and perhaps even get group tour discounts.

Take out a loan

If your personal circumstances mean you need additional funding, you can consider taking out a personal loan or accessing equity in your home by applying for an additional home loan facility. This sets your budget but allows you to pay the loan off over a period of time with managed repayments. It's important to be mindful of the interest and repayment terms to avoid a painful debt after your holiday.

Consider a holiday credit card

There are many options and benefits to taking out a credit card for the purpose of the holiday. Some cards even offer free travel insurance, but be warned, you’ll need to manage this debt upon your return.

Happy holiday!