4 Common holiday money mistakes

In today’s busy corporate world, holidays are at a premium. Therefore, all of us strive to plan our vacation well in advance to ensure no hiccups at the last moment. Unplanned vacations invariably lead to skyrocketing of expenses and hurt your budget.

In general, the majority of people spend more than their planned budget because of last minute holiday planning; unplanned expenses could include giving gifts to everyone family and sudden medical or other expenses. Hence, chalk out a budget that encapsulates all your needs and stick to it.

Given below are few mistakes one should avoid while planning vacations:

• Late vacation planning

When you plan your vacation late, you get expensive deals on travel fare and hotel bookings. You may end up paying higher for transportation and accommodation. So plan your vacation in advance to ensure that you do not miss out on the best available deals.

• Not having a budget; having a budget but not sticking to it

Any trip can be ruined if you do not prepare a budget for a holiday. Make and follow a budget specifically created for your travel destination. Your budget plan should include important expenses such as food, accommodation, and travel arrangement.

Having a budget becomes irrelevant if one does not follow it. For example, if your budget does not allow buying a gift for everyone in the family, then stick to it. Do not compromise on your budget. Avoid last-minute additions to the budget.

• Counting on traveling allowance or holiday bonus

You might receive a holiday bonus or traveling allowances from your employer, but don’t just rely on it. Prepare a budget based on your regular monthly income. In case you overspend and the company refuses to give traveling bonuses for that particular year, then it will really cost you big. Even if you get that money, you can invest it to pay off your debts than spending it on holidays.

• Attracted to various deals and ads

Retail outlets located at holiday destinations always trying several tricks to attract customers and want their customers to spend more and more. So, don’t get lured to such deals and ads. If you fall for such ads/deals, you overspend and create more financial problems. Avoid spending more than you can afford. If you break your budget deliberately, then what’s the use of making it?

Avoid making spending decisions under anxiety and stress to ensure that you don’t blow your budget. Following even a few of these steps will surely make your holiday gloomy. After all, healthy spending decisions result to a happy holiday for you and your family.