WHEN you hear that your friends are going on holiday for the jolly festive season, you might be tempted to join them without a plan.
While unplanned getaways are always exciting, John Manyike, head of financial education at Old Mutual, said it will cost more than you expect.
First make sure that you have a proper budget and stick to it. This means that the good holiday mood continues into next year without regret.
“Many people do make a holiday budget in advance, but once they arrive at their destination, their excitement gets the better of them and their financial plan goes out the window,” he said.
He gave five tips to curb overspending while travelling.
Do your homework
Before you depart, do some research and plan your route and your excursions on a detailed map to help you cut down on unnecessary fuel or public transport fares.
Hotel services and discounts
If you’re staying at a hotel or resort, find out in advance what amenities and services are included. Make use of any free services provided by the hotel, such as Wi-Fi and shuttle services, as they can add up to significant savings over the holiday.
Travel light
If you’re flying, keep to the baggage allowance for the carrier you’re travelling with. This will ensure you cut out any extra baggage costs. Even if you’re going on a long trip, it will be cheaper to take half the clothes you need and wash them yourself than taking extra baggage.
Use cash instead of credit
Using cash will help you keep track of how much you have and maintain your daily budget.
Make sure you carry only the daily allowance of cash for each day. Only use your credit card in an emergency.
Another advantage of carrying cash is that you can often negotiate for discounts.
Pack your own food
Breakfast is the most important meal of the day. Eating a balanced breakfast will sustain you through most of the day, which means you can avoid costly lunches at restaurants.
You can also pack your own picnic lunch instead and enjoy a local park.
