Even after planning and budgeting your vacation meticulously, simple mistakes can make your holiday’s bill balloon to a shocking total. Protect yourself and your holiday this year. Stop yourself from making the following mistakes before they do a number on your finances.
Relying too much on credit cards
Studies show you’re less likely to fork over cash than you are to swipe plastic. Many psychologists believe it’s because you have to physically hand over bills and coins when using cash, while cards tap into a seemingly never-ending supply of intangible credit. Unfortunately, there is an end to it, and you’ll find it quickly if you’re constantly using your cards to pay for your trip.
Credit makes it especially easy to lose track of the true cost of your vacation if you leave the States. The price at the till will be in the local currency, and you won’t see what you actually paid in USD until you receive your statement. Depending on the exchange rate between the US and your destination, the difference could be astounding. You may also face hefty currency conversion fees, transaction fees, and other surcharges.
Avoid using credit cards by taking out cash whenever possible. Your bank typically offers the best exchange rates, but you may find other affordable options abroad. As for those situations when you can’t avoid using them, make sure you pack the card with the fewest charges.
Forgetting about your responsibilities
The world doesn’t stop just because you’re busy working on your tan at the beach — though it’s easy to believe it has when you’re staying at one of these oceanside resorts. No matter how relaxed you get on your trip, don’t forget you still have responsibilities back at home. Bills and other payments are due on time regardless of where you are in the world.
You can avoid missing important due dates by setting up automatic payments through your bank. It’s easy to set up a schedule of pre-authorized payments for utilities, credit cards, and even rent, so you’re never at risk of forgetting a bill again.
Not thinking about backup
Automatic payments certainly make life easier, but they also make it easier to overdraw on your accounts. That’s because these payments come at a time when you’re spending more than you normally would, and you might use the cash you’ve devoted to an automated payment on a souvenir for a loved one back home. If you aren’t quick to catch your mistake, the payment will attempt to go through. Without enough funds in the account, you’ll be stuck paying late fines and/or overdraft fees.
You can easily avoid this issue when you think about supporting your finances carefully with a budget and online loans. Personal loan rates are at an all time low. A budget can help you strengthen your finances by tracking and eliminating unnecessary expenses. This helps pad out your savings, so your finances can handle both bills and fun shopping on a holiday.
If your budget is already tight, you might not have unnecessary expenses to eliminate — in which case you can find loans online that help you cover emergencies simply and quickly. Online lenders like MoneyKey offer installment loans that work faster than traditional assistance. These products also have more forgivable repayment terms than the typical small-dollar loan. To see what those terms may look like, review the available quick online installment loans and compare them to other cash flow solutions. It’s important you find an installment loan that fits your financial capabilities, so you can bounce back from your mistakes faster.
Though many travel guides will remind you of the importance of planning and budgeting your trip, these aren’t the only ways you can keep your costs low. Simple mistakes can be your biggest financial foes when it comes to your vacation. Eliminate the ones mentioned above, and you’ll keep your holiday on financial track.