It’s easy to overspend on vacation. Here’s a guide on how to keep your budget under control.
It’s not uncommon to wake up at the end of a vacation and discover a massive credit card bill.
Budgeting is only the first step to keeping your debt and spending under control. In order to control overspending, take a look at our guide on how to keep your holiday money under control.
How to manage you vacation expenses
You need to be constantly aware of your financial situation and see that you are actually sticking to the spending limits you set yourself. A few things you can do to ensure that you won’t spend like rockstar are:
- Set a realistic budget. There is no point setting a budget that you won’t be able to stick to. Set a budget that seems manageable once you take a look at your finances and think about how much you spent last vacation.
- Leave your card at home. One way to avoid overspending on vacation is by cutting your line of credit and leaving your card at home. Just bring the amount of cash you have budgeted to spend.
- Remember your numbers. People tend to forget about their financial situation while on vacation and have an “I’ll deal with it later” attitude — this is how debt happens. Organize your budget and check it regularly to see how your credit cards and bank accounts are holding up.
- Make plans and stick to them. If you are planning a day out with family or friends, organize how much you are going to spend beforehand. Before you leave, check all of your bank accounts online so your financial situation is fresh in your mind — this will help you to not overspend.
- Consider a credit card with a purchase rate offer. Credit cards with introductory rates are a great option for vacation as they can let you make purchases during a promotional period without accumulating interest. The key thing to remember with these cards is to pay back all of the money you owe before the promotional period ends.
- Consider a balance transfer. Balance transfers are a great way to start paying off your credit card debt without incurring interest fees. A balance transfer involves moving the debt from one credit card to another one that offers a lower rate
Spending habits to avoid on vacation
When trying not to overspend, there are some things that make sticking to a budget difficult. Here are some things to avoid when trying to save over the holidays.
- Shopping in a mood. Never go grocery shopping when you are hungry, right? If you know that a mood will make you forget about your budget, do yourself a favor and avoid frivolous spending.
- Shopping with someone who doesn’t care about your budget. Only you’re aware of your financial situation and budget. Don’t let someone who doesn’t care about your budget be a bad influence on your spending habits.
- Getting carried away at a sale. Sales can be a great place to save money, but it also poses the threat of overspending. If you’re planning on going to a sale, avoid impulse purchases and stick to your budget.
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