mobile-menu mobile-menu-arrow Menu
 

Top tips to save on holiday spending

 
Blog Filters

Recent Posts

 

This post may contain some affiliate links. Please read my full disclosure policy.
 

Top tips to save on holiday spending

With the summer fast approaching, I am sure many of us are beginning to think about holidays and all that comes with that. No work, relaxation, fun and happiness! That’s what it’s all about isn’t it?

WELL, NOT ALWAYS!

“How much holiday spending money will I need?” “Where am I going to find it?” “Aaaargh – I wish I had started saving some!”

“Have we got enough clothes?” “The kids feet have grown AGAIN!” “I need to go shopping?” “When am I going to find the time to do that?”

“Does the car need new tyres before the long journey?” “Have I already paid the car hire?” “Do we still need to book an overnight stay at the airport?”

beach-beverage-caribbean-cocktail-68672There is no doubt about it – holidays are amazing, but they can put a real strain on your finances.

No matter whether you are going abroad, holidaying in this country or having a staycation, holiday spending can leave a huge dent in our bank accounts.

With budgets being so tight, many people have not saved their spending money before their holidays, and then put their holiday spending on credit cards. While this might seem like a good solution, it can cause the holiday hangover from hell if it is not planned for.

THE PROBLEMS WITH CREDIT CARD SPENDING ARE THREEFOLD:

1 Spending on a credit card doesn’t feel like spending “real” money. Drazen Prelec and Duncan Simester’s report “Always Leave Home Without It” (2001) showed that we spend twice as much when we put it on the credit card. On returning home, that larger than expected credit card bill can put a real dampner on the post-holiday blues that are beginning to creep in anyway!

2 If you run out of cash and decide to take a cash advance you will often be charged a higher rate of interest, averaging 26%, as well as a withdrawal fee, which is often around 3% of the amount withdrawn. If you take out cash abroad you will also be charged a foreign transaction fee which can add another 2.5% to your cash advance. This could mean that withdrawing £100 in cash would cost you an extra £5.50, and you are likely to be charged interest on this from day one.

If you are abroad and using the card to make purchases only, you still may be charged a foreign transaction fee of around 2%. Add that to your holiday spending and it will cost you an extra £2 on every £100 you spend. To avoid this do a bit of research before you go and choose a fee-free foreign transaction credit card. Google it!

And thirdly

pexels-photo-451113 So the feelings of relaxation are fading fast and this credit card bill now needs to be paid. If you have the money and are able to pay this off immediately then this will not cost you anything in interest. However, the problems occur when holiday spending is added to an already bulging credit card balance. The current UK average credit card APR is 21.6%, according to research by Moneyfacts (2016). If you have £2000 on a credit card at 21.6% you would have to pay off £210 each month to have it paid off before next summer. This would cost you £193 in interest!

Add the £193 to the fact that you have probably spent twice as much as planned by using the credit card and your holiday spending has spiraled considerably.

IS IT WORTH IT?   IF YOU THINK IT’S NOT, THEN CAN YOU PREVENT IT FROM HAPPENING? HONESTLY!

Read on to see my simple, yet valuable tips.

HOW MUCH CAN I AFFORD?

Boring, I know, but the first thing is to consider how much you can afford to spend. Have you got any money saved up? If not, then how much can you realistically save before your holiday? (some of the later tips will help you!) Don’t worry if this amount seems too little – we are going to look at how we can make the most of every single penny of your spending money.

WHAT IS THE MOST IMPORTANT THING?

Before you go on holiday think about what is THE most important to you about your holiday. For me, it is absolutely the chance to spend quality time with family and friends. I don’t care where we go or what we do, as long as we are able to spend time together, having fun and creating memories.

For other people it might be the chance to get dressed up for dinner each night, some might value getting a suntan most, while for others it could be the chance to do nothing!

So what is most important to you about your holidays?

Why does this matter?

Well, it will really help you to spend less if you plan your spending, based on what is important to you. The bulk of your holiday spending should be on the things that you value most and you can really cut down on the things that are less important.
pexels-photo-120173Eg: For me, we have had lovely holidays in the UK in fantastic houses, with great big communal family areas, which have cost us a big proportion of our budget. We have then taken picnics to the beach, the forest, the park and free museums and had loads of fun days out which have cost us very little. We have never felt that we were missing out on anything, because we were choosing to spend our money on the things that mean the most to us.

Before you spend any money on holiday ask yourself “Is this purchase helping to get what is most important to me/us?” If the answer is no, then can you avoid spending on it altogether? Or can you find a cheaper alternative? Be prepared to compromise on the spending that doesn’t bring you happiness.

SAVING MONEY

I suggested earlier saving up some spending money. I know, I know – it’s impossible! It’s NOT – honestly. Set yourself a challenge of having a “no-spend” month. It is obviously impossible to have a complete “no-spend” month, but it is totally possible to spend on only on ESSENTIALS and save a surprising amount of money. Come along and join my “Your Money Sorted group”, on Facebook where you will get fantastic daily tips and suggestions.

A HELPING HAND

Download my 7 top tips to save £300 in 28 days – again simple, yet effective ways of saving money, quickly.

EATING OUT ON A BUDGET

Many people really enjoy eating out on holiday, but the costs of that can really spiral, especially if you add children into the mix. Try these simple ideas to save some money on eating out.

  • Use Tesco Clubcard Boost and get 4x their value for many restaurants eg: £10 in vouchers = £40 of food!
  • Always check to see if you can get a discount voucher Pizza Express, Zizzi, Bella Italia are among a large group of chain restaurants who have great 2 for 1 and other big discounts on meals. Check www.moneysavingexpert.com for some great deals and tips.
  • Choose lunchtime or early evening specials – they offer great value for money.
  • Ask for a jug of tap water with your meal, as long as you are in a country where it is OK to drink tap water! I will not be responsible for any illness!!
  • Have a main course only and pop to a local shop on the way home to buy ice creams for dessert!

pexels-photo (1)GOOD VALUE DAYS OUT

Days out are another area that can really bump up the cost of a holiday. Get creative! Gather information about all the activities, both paid and free, that are available in the area you will be staying. If you are holidaying in the UK check Tesco Clubcard as well, as they have some great days out on offer. Set yourself a budget for days out, then see which combination of free and paid ones you can afford to do.

 

We let the kids do this job – they understand that we can’t do everything, so they have become very good at prioritising the ones that they REALLY want to do and then making them fit the budget.
I hope that this has helped you think about how you could reduce your holiday spending and I hope that you have a wonderful holiday.

If you feel this post has been useful, then please feel free to share it with friends and don’t forget to pop by our Facebook group and say hi.

Eileen x

I am Eileen Adamson, a Your Money, Sorted coach, working online with UK based women, helping them to develop a better relationship with money.  By gaining an understanding of how their personality affects the decisions they make, I can help them to implement changes which will allow them to feel calm, positive and confident that they are in control and making good financial decisions.  I can then support them to put into place simple strategies that will allow them to manage their finances effectively on a daily basis and create a stable, secure and exciting future for themselves.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Blog Filters

About Eileen Adamson

I am Eileen Adamson, a Your Money, Sorted coach, working online with UK based women, helping you to develop a better relationship with money. I can help you to understand your money mindset and implement changes which will allow you to feel calm, positive and confident as you become happier, healthier and wealthier.

Get In Touch

Freebies

No gimmicks, just useful money tips. If you fancy receiving my freebies, then please click on the relevant button to subscribe, then I will send you the details. I promise not to bombard you with rubbish emails, or share your details with anyone else.

Freebies
 

Coaching Services


Finance for Freedom - Master your money in 28 days

How would you feel if you had enough money to allow you to live the life you want? Work out your path to financial freedom and feel happier, healthier and wealthier

Learn More

Teachers' Pensions Retirement Planning

Imagine being able to put more money towards your retirement, while still creating wonderful opportunities for you and your family, today and every day.

Learn More

"sandieI learned about my habits, personality and attitude towards money and faced my fears, taking my head out of the sand!  The structure of the course suited me as it was in bite sized daily chunks and for anyone who is worried about the work load I did it and I am a full time teacher with 2 children who was also training for a marathon!! If you want to make changes then you will find the time. Eileen is very supportive and always available for feedback and to answer any questions and I also found the contact with the other participants really useful. All in all a brilliant course – Cheers Eileen!"

Sandie - Dumfries
© 2017 Your Money Sorted | Web design by Creatomatic