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Vacation on a Budget: How to Finance Your Travel Plans

travel financing options

Financing your Travel Plans

Whether you’re visiting faraway relatives or taking a honeymoon trip, you may be looking to travel at this time of the year. Taking a vacation is a way of reframing your thought processes or taking a break from your daily routine. The world has certainly gone through many changes over the last year, but many are still looking for good deals on flights and other ways to lower costs on their vacation plans.

However, what you may not know is that travel finance is an available option. You don’t need to have a large savings cushion to utilize some of these useful finance choices, recommended by an expert bankruptcy lawyer in Philadelphia. Travelers and sightseers from everywhere can finance their vacation effectively and keep their budget intact.

Plan Your Travel Budget

Travel budgeting is the first step before any type of long-term travel is done. You’ll want to plan out your travel budget to evaluate how much available money you have to spend on your vacation. Think about what you will spend on flights, hotels, activities, etc.

We recommend that you use Google Sheets, Microsoft Excel, or a similar spreadsheet app. Make a list of the places you’re traveling to, where you think you’ll spend your money, and approximately how much. Obviously, if you have fewer funds than you thought you had for your travel, then you’ll need to rework your vacation budget.

See if you can find a lower rate on a flight by delaying your vacation. Later calendar dates for flights often come at a cheaper rate. Other budgetary considerations include searching for more cost-efficient hotels or an Airbnb.

Save Up Beforehand

As we said, financing your vacation doesn’t require a large cushion of savings. If you have a travel date planned, then we recommend starting at least three months in advance to build up your vacation fund.

In this savings period, you should commit to cutting back on some of your spendings. It’s recommended that you put some of your money into a high-interest savings account. If you’re planning for a longer trip, set aside some of your monthly income before that vacation date.

Treat your new savings account, or the amount you’re setting aside from your income, as a way of boosting your vacation funds so that you can enjoy your trip even more.

Use the Benefits of Credit

Credit cards are also a useful option that gives vacationers a chance to help finance their trip. If you’re applying for a credit card, make sure that you check your credit score. Credit issuers charge an annual percentage rate (APR) that is more commonly known as interest.

Ensure that you’re able to pay off your balance to your card issuer, especially if you plan on using your credit card to fund a large part of your trip. If not, you could see your card’s monthly or annual interest rate rise.

Some companies even offer travel credit cards with benefits such as points or miles, which you can redeem on your vacation expenses. If you use a specific airline or brand of hotel frequently, you may want to see if they have a travel credit card and apply for it. Such examples of cards include:

  • Delta SkyMiles Gold American Express
  • World of Hyatt
  • Bank of American Travel Rewards
finance your travel plans

Get a Personal Loan for Travel

Budgeting and saving up are standard ways for average travelers to add to their vacation funds. However, when the traveler needs additional money quickly, they can get a personal loan for travel purposes.

Getting a personal loan in these instances is an unsecured loan, meaning that it won’t use your assets as security. Instead, it will rely on your credit score and history for you to qualify. Check your credit score beforehand and compare lenders to find the best available option for yourself and your budget.

You can rest easy knowing that this type of loan won’t use your assets as collateral. However, be aware that these types of loans have higher interest rates, which can sometimes go as high as 36 percent.

Vacation planning can be time-consuming, especially these days when budgeting is at the forefront of everyone’s minds. Thankfully, these are a few steps that travelers can take to ensure that their trip doesn’t cost them a fortune. With these tips, you can vacation on a budget and finance your travel plans.

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About the Author

Veronica Baxter is a legal assistant and blogger living and working in the great city of Philadelphia. She frequently works with David Offen, Esq., a busy bankruptcy lawyer in Philadelphia, PA.

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