Vacationing to a far-off location or spending quality time with your dear ones necessitates planning and adequate money to fund that trip. While you may consider breaking into some of your bank deposits to finance the trip or outdo the credit limit on your credit card, you may also consider taking a vacation loan.
You cannot go to a lender and ask for a vacation loan, simply because there’s no such term. What you can do is apply for a personal loan for travel. With many lenders are happy to extend the loan amount with minimal documentation and sans the need of paying any collateral to secure the loan, applying for a personal loan becomes easy. Just remember, the lender may or may not sanction the loan amount and you will need to use part of your income or savings to go on the vacation you are planning. So, it would be better to start saving a part of your income to pay for your travel.
Simple steps to save money for a trip
Saving money is not difficult, especially, if you have made up your mind. All you need to do is follow the effective hacks mentioned below so that you have enough money to spend on your vacation.
– Set a financial goal: This is important. Remember the rules of financial planning that you were taught in school? Well, every effective financial planning involves managing your money skilfully. Money management is not a hired trait, one gradually learns to manage finances through rigorous and continued habits of savings and investments. If you wish to travel, then first estimate the amount that you would need for the trip and save accordingly. Knowing how much you would spend and the total amount needed for the trip will save you from facing sudden funds shortage during the travel.
– Cut down on unnecessary food expenses: Love to order your morning coffee from fancy, expensive restaurants? If yes, then it’s time to say “No” to those unhealthy spending habits. Also, cut down on the urge of eating food outside at fast-food joints or restaurants. Ordering food from outside costs more than home-cooked food. Ordering your food every day can cause a dent in your savings, thus, hindering you from achieving your financial goal.
– Resist unbridled shopping: Unrestrained shopping habits can hurt your savings while a continued tendency to buy things using a credit card increases the risk of falling into recurring debt. Irrespective of the seasonal and website discounts that you may come across, prefer to pay for things that you need and not what you want. Savings will be a lot easier once you decide to buy for necessary products, and without which you cannot do.
– Cut down on credit card use: Many people look at their credit cards as an extension of their savings. This results in paying for unnecessary stuff too. Paying through your credit card allows you to repay the amount through equated monthly instalments (EMIs). However, many people ignore that they have incurred a liability and are paying interest on the principal amount borrowed on the card. Minimising credit card usage allows you to save the amount that you would have otherwise paid as interest to your bank or credit card company.
– Prefer using public convenience for everyday transport: Hiring a cab for daily transport involves a lot of expenses, especially, as fuel costs continue to rise. Utilizing public commute is way more cost-effective and a great way to soak in the culture of that area.
– Borrowing for your trip
“Borrowing for a trip?”. You heard that right. If nothing works or your savings are not enough to take that once-in-a-life trip, try taking a personal loan. To gauge the amount that you would have to repay on your loan amount, consider using the personal loan calculator available online. Taking a loan involves the liability to repay it during the predetermined loan tenure. Using the calculator helps you understand the total interest outgo on the loan and the EMIs that would have to be paid towards the loan. The calculator also factors in added expenses charged by the lender, thus, determining the total liability incurred for the trip.