Are holidays on plastic really just "plastic holidays"?
Tags: saving
School holidays are over for another few months. Hopefully it was a fun time for you and your family, and if you managed to get away for a quick holiday we hope you had a great time! We also hope that there aren’t any credit card ‘surprises’ lurking around the corner….
As hard as it can be, many people swear by ensuring they can pay for any holidays in full upfront. The only aspects that go on plastic are daily expenses while they’re away – but they’ve budgeted for those as well and put an appropriate amount onto their credit cards before they leave. That way, they know everything is paid for and they don’t return to a debt that will ruin all the happy memories of their time away.
Obviously not everyone is as disciplined and a lot of people spend up big using their credit cards to pay for holidays. If that applies to you, here are some tips to help you save for your next big break without relying on debt.
Start with a plan. Write or type up a budget. Automatically allocate some money from each pay to a separate account and don’t touch it. It will quietly build while you plan for your holiday.
Hide it before you spend it. If you already have credit card debt, schedule an automatic deduction from your cash account direct to your credit card every pay day. In both of these tips, if the money isn’t there, you can’t spend it.
Sell something. Do you have unused gym equipment, a bicycle you never ride, or even clothes you’ve hardly worn? Have a big clean out and stage a garage sale, or sell it online. Reduce your card balance or top up your holiday account with the proceeds.
Use windfalls. Are you due a bonus or tax refund? See yourself on the holiday of a lifetime. You know where it’s going!
Spend less. Careful spending doesn’t need to impact on your lifestyle. Try these ideas:
- Entertain at home more rather than at restaurants or pubs
- Lay-by birthday and Christmas gifts during the store sales
- Check out upmarket clothes recycling stores; they often have designer clothes at bargain prices. No-one will ever know!
Ask for help. Sometimes it’s difficult to get back on top of debt by yourself. There is a lot of support out there – you just need to ask. If you’re not sure who to talk to, send us a note and one of our financial advisers will point you in the right direction.
If you’ve never tried going on a holiday knowing that you won’t be returning to more debt, give it a go! The sense of freedom it gives can make the holiday even more enjoyable. Try it - then send us your holiday snaps!
