By Rishi Piparaiya – Best Selling Author and Financial Mentor
Travel is booming! People are making up for all the time they lost in the pandemic by traveling near and far at any opportunity. Air, rail, roads, hotels, and resorts–in India and internationally–are all packed to capacity. And with people focusing more on work-life balance, leisure travel will continue to increase. Naturally, with increased demand and limited supply, travel prices will also continue to rise. Here are some strategies you can adopt to ensure you are well-prepared to fund your travel adventures.
Create a vacation fund: People save for various wants including cars, homes, children’s education, weddings, and so on. Travel and vacations are as crucial for keeping oneself charged up and saving some money each month for holidays. Invest these systematically into products such as mutual funds and fixed deposits, basis when you need the money and your risk appetite. These funds will grow over time, hopefully outpacing inflation and enabling you to holiday without worries.
Plan early: The earlier you can plan and commit to your travel, the more money you will save. Whether it is hotels, airlines, or other service providers–they all like to lock in their business. So they offer huge discounts and rewards to travelers willing to commit in advance. If you have definite dates, go ahead and make the bookings. You will save a considerable amount. Of course, if you cannot travel for any reason, you may lose some or all the money, so you need to evaluate basis how certain your plans are.
Capitalise on Rewards Points: Many credit card companies offer reward points for spending. Collect them and use them effectively for discounts or upgrades. Also monitor discounts and deals provided regularly by banks, agents, and online travel sites. Sometimes the offers are pretty unbelievable and grab them!
Get Travel Insurance: Despite your best intentions, things can go wrong. Whether illness, theft, delayed flights, or loss of baggage–all of these can impact your holiday and finances. Protect yourself through adequate travel insurance. It is inexpensive, and easy to purchase, and if you happen to need it, it can save you some effort and a lot of money.
Do not take loans to fund travel: Finally, a word of caution. As far as possible, do not take any loans to support travel, especially if you cannot pay them back immediately upon your return. The interest and fees can set your financial plan back by years. Save for your holidays and be more frugal if required while you are traveling. But do not fund travel on the back of debt. It comes at a considerable cost.
As Saint Augustine said, “The world is a book, and those who do not travel read only one page.” With adequate financial planning, you can complete multiple chapters, if not the whole book. Happy reading!