Escaping the daily grind, soaking up new experiences, and maybe some sun—what’s not to love about a holiday? But let’s be honest, the excitement of planning can sometimes lead to a bit of… shall we say… ‘creative’ budgeting?
You know what I mean—the ‘YOLO’ mentality that whispers, ‘go on, you deserve it!’ Well, yes, you do deserve it, but your home loan balance might disagree when you get back home.
Here’s the thing—when you get swept up in holiday vibes, what’s supposed to be a relaxing break can quickly turn into a financial hangover. But here’s the good news: enjoying your holiday while keeping an eye on your spending is like having your cake and eating it too. You can absolutely have both—sunshine and savings, mojitos and money in the bank.
This, my friends, is what it’s all about—getting your financial ducks in a row so you can jet off without worrying about whether your repayments are covered. Because let’s face it, financial stability equals freedom. And freedom equals more holidays!
So, how do you strike that perfect balance between living it up and staying within your means? It all comes down to thoughtful planning and making smart choices.
Set a Budget—and Stick to It
First things first, let’s talk numbers. Before you even think about booking that Bali villa, set a clear budget. Accommodation, meals, activities—every dollar needs a purpose.
So, what’s a sensible amount to spend on a holiday? A good rule of thumb is to allocate around 5% of your annual income to vacations. For example, if you’re earning $80,000 a year, an annual budget of $4,000 for your holidays and trips is a practical and manageable target. Now, if you have kids, your money doesn’t stretch as far.
It’s about making smart choices to ensure everyone has a great time without going overboard. Prioritize activities that offer the most value and find family-friendly deals to make the most of your budget. While it might be tempting to splurge, sticking to a budget that keeps you on the road to financial freedom is key.
Save, Save, Save
We can help you start setting aside money well in advance (even putting it in a different account for you)—ideally for 6-12 months. This approach not only helps you build a healthy holiday fund but also gives you the peace of mind that your trip is fully paid for before you even pack your bags. Plus, saving gradually makes the financial impact of a holiday much easier to manage.
Early Bird Gets the Deal
Whether it’s flights, hotels, or activities, the earlier you book, the more you’ll save. Google Flights and Skyscanner are great for finding the most affordable days to fly by using their flight charts – don’t forget to set up price alerts! For accommodation, Booking.com and Trip.com are my favourites.
Travel Off-Peak to Peak Savings
Why fight the crowds (and pay top dollar) when you can travel off-peak? Avoid flying on the exact day school holidays and peak seasons start and finish, instead fly out a few days earlier and you’ll not only save money but also enjoy a more relaxed experience. Tools like Kayak Explore help you find the best destinations for your budget and your dates. Win-win!
Bundle and Save with Package Holidays
Why piece together your trip when you can get everything in one tidy bundle? Package holidays often offer incredible value by combining flights, hotels, and even activities at a lower cost than booking separately. Sites like Expedia, Luxury Escapes, and FlightCentre make it easy to find the perfect package that suits your budget and travel style. Plus, with everything pre-arranged, you can focus on enjoying your holiday rather than stressing over the details.
Cash is King
Leave the plastic in your hotel safe and stick to cash. Withdraw a set amount each day, and when it’s gone, it’s gone. This way, you’ll keep your spending conscious, and avoid those dreaded impulse buys.
Embrace Free Activities
Not everything worth doing on holiday comes with a price tag. There are plenty of free (or nearly free) activities that can be just as fun as the expensive stuff. Think exploring parks and beaches, checking out local events and walking tours, you’ll find ways to enjoy your time without draining your wallet. Use Facebook to discover local events—you might just stumble across something amazing!
Get Travel Insurance—Just in Case
Travel insurance might seem like an extra expense, but it’s one of those things you’ll be glad to have if things don’t go as planned. Whether it’s a medical emergency, a canceled flight, or lost luggage, having insurance can save you from unexpected costs that could otherwise turn your dream holiday into a financial nightmare. It’s all about protecting your investment and your peace of mind. Websites like Canstar can help you find a travel insurance plan that fits your needs and budget.
Better safe than sorry! It’s all about protecting your investment and your peace of mind. Websites like Canstar can help you find a travel insurance plan that fits your needs and budget.
