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SOME people choose to go on holiday near the end of the year, with those closest to them. However, sometimes this joy is often followed by financial regret due to a lack of good financial planning.
This can happen because a lack of planning can result in overspending or even draining your savings throughout the year. In addition, impulsive behavior during the holidays can also have a negative impact on personal financial conditions.
So, so that the end of year holidays doesn’t become a trigger for financial disruption in the following year, here are some anti-boncos holiday tips as outlined in Manulife Indonesia’s written statement, Friday.
1. Learn about the destination you are visiting
The first step that is considered important in planning a holiday is determining a destination that suits your financial conditions. Beforehand, do in-depth research by reading articles, watching reviews, and learning everything about the chosen destination.
It’s best to avoid the temptation to spend more than you can afford by considering more economical alternatives. For example, if someone realizes that their financial situation does not allow them to go abroad, then don’t be tempted to use payment methods such as pay later or installments.
Choose your holiday destination wisely and according to your budget. One can also consider destination options that have not been explored much, or what are now often known as hidden gems.
This tip can save someone from going on holiday outside their budget because usually the costs involved are not too high but you can still enjoy new, unique experiences.
2. Make a detailed budget plan
After determining the destination, the next step is to create a detailed budget plan. Make details of every need, starting from accommodation costs, transportation, food, tourist attractions, to shopping for souvenirs.
This way one can have a clear picture of the amount of money required during the holiday. Don’t forget to add a budget for unexpected expenses.
One easy budget plan format is to divide expenses by leaving date. From each day, write down the activities to be carried out and always record expenses by category.
After making this into a table, fill in each category with the estimated costs that will be incurred. With this approach, someone can more easily track daily expenses during the holidays. The daily total range and overall trip total will also be visible through this method.
3. Open a special savings account
Furthermore, someone can also open a special savings or account for vacation purposes. Discipline in setting aside these special funds can help someone monitor holiday expenses well.
Ideally, start saving after setting your destination and detailing your budget. The earlier a person starts saving, the more money he can accumulate.
To be consistent in saving, try setting up automatic transfers from your salary account to your vacation account every month. Additionally, try using an app or spreadsheet to track savings progress. Monitor and evaluate regularly to ensure that you stay on track towards your targets.
4. Manage money wisely while away
When it’s time to leave, always remember to be wise in managing your money. The first thing you can do is to allocate some cash to limit expenses and help you become more disciplined.
Apart from that, one can also take advantage of financial applications or tools that can help you track expenses in real-time and provide insight into how money is used.
If in the end you exceed the budget that was set at the beginning, there’s no need to panic. Instead, take a moment to re-evaluate how much you can exceed your budget. Ideally, excess spending remains within 10 percent of the total initial budget.
By keeping extra spending within reasonable limits, one can still maintain financial balance during and after the holidays without worry. This also provides room for adjustments without disrupting cash flow.
5. Always be prepared
Apart from making thorough preparations, health insurance is said to play an important role in ensuring a safe and comfortable holiday. Although no one expects negative incidents, having health insurance is claimed to be an important anticipatory step. [antaranews]
