How to make holiday budget?

When we create our family financial planning, recreation or holiday allocation should be included in the list of needs. In fact, the frequency of family recreation can be more than once a year. Of course, every family should be looked in the ability of each pocket. Before meeting the needs for recreation, the family must have basic needs, like food, clothing, shelter, health, and education.

Moreover, beside the basic needs, there is still another important need to be fulfilled first, which is charity, debt repayment, insurance, and investment. Then, the last one is entertainment, including holiday.

Although recreation is at the last priority list of family needs, financial planners believe, every member of the family can meet these needs. Condition is the cash flows have to be healthy. Debts should not more than 30% of income and there are budgets for investment of at least 10%. It would be better if the family already has insurance protection, at least for the householder. Insurance is important, especially for families who do not have many assets.

How to keep your costs reasonable?

1. Installment financing

Recreation usually needs large enough money. Therefore, we have to prepare the funds well-planned. How? Set aside some money every month. Regarding the amount, there is no standard benchmark. Approximately 10% of your total income can be put for holiday.

Regarding the investment product, the selected investment product is based on the character of the short-term investments, such as savings, deposits, money market mutual funds and fixed income funds.

2. Price surveys

While preparing funds, you can use the time to survey what kind of rates and facilities most appropriate to the condition of your finances.

Once you confident with the choice of transportation and accommodation, advanced booking will also allow you to save on your expenses. Airfare or hotel rates are often cheaper than when you buy it at the day of your departure.

3. Take advantage of promo.

You can use a number of promotional programs related to holiday needs, such as promotion of a cheap tickets or lodging. You can also use a credit card promotional program. Only do not forget to pay off bills when its due date.

You can ask here and there, or try looking site that offers a variety of discount coupons on the internet.

4. Breakdown the list of needs

Once you set goals, time and cost assumption of your holiday, do not forget to make a detailed list of your needs for recreation. This is necessary so that when leisure, you and your family do not come up short on the road or even a debt due to lack of funds.

Some need to be specified, such as the cost of lodging, transportation, meals, and buy souvenirs. Beyond these costs, it is good to overestimate money needs by 10% -15% for unexpected costs for recreation.

Well, congratulations to plan a fun vacation!





(image taken from: visitwhitby.com)

Related Post