There has never been a better time to travel and see the world. The coming year is filled with great opportunities for venturing out to new countries and exploring diverse cultures. If you are simply interested in lying on the beach for a week or two, there are many options for that as well.
The options for holiday destinations may be numerous and well-known but the options for financing such an adventure are not as commonly understood. Having a bit of background into some of the best ways that people are affording relaxing holidays this year will give you an insight into how you can make a similar trip work for your budget in 2020.
To this end, let’s look at some of the best options for securing travel finance and affording the holiday of your dreams in 2020.
Save big for the holidays
One of the best ways to be able to afford a great holiday each year is to practice prudent financial habits throughout the rest of the year. If you have a regular income, try setting aside a certain percentage of your pay cheque for your annual getaway. If you have difficulties in controlling your spending, you can even make this process automatic by setting up a separate account earmarked for the purpose.
By saving throughout the year, you will be able to afford to pay for your holiday in cash. This will always be the cheapest way to have a great holiday, with no interest payments to worry about.
Set a holiday budget
If you have managed to save throughout the year but your dream holiday still looks like it will be out of reach this year, then it is important to make a travel budget. Narrow down your options and identify some more affordable alternatives in the destination of your choice. You may be able to save on accommodation or transportation if you do some comparison shopping. Once you know how much you are able to spend on your holiday, you will be able to segment your spending more effectively to still make the trip work this year.
Secure a personal loan
If you have saved some money and set a budget but your holiday is still not looking like it will be feasible, then consider taking out a personal loan. Negotiating a low-rate personal loan is usually straightforward, especially if you have a good credit score. While the interest that you pay on the loan will make the trip a bit more expensive, this can be justified if the trip is truly a once-in-a-lifetime experience that is too good to pass up this year.
Make sure to be aware of what your monthly repayment will be on your personal loan before agreeing to it. The last thing you want is to return from your holiday, fully relaxed, only to find that a larger than expected bill is waiting for you at home.
Compare your options
Regardless of how you choose to finance your travel plans, there are always more ways to cut down on costs. Focusing on this aspect is another way to make a trip more affordable. For example, your dream holiday does not necessarily have to include the most luxurious hotel or the fanciest restaurants in order to be memorable.
Make sure to strike a balance between opulence and affordability to make the best choice for your long-term finances. Take some time to conduct a bit of informal research online using aggregator websites. You will be able to spot the best deals and still fly out to your dream destination in the coming year.