Holidays are an opportunity to relax and make unforgettable memories, however, they can easily become costly. Nobody wants to return home to post-vacation stress and financial worry. If you’ve just returned from an unexpectedly expensive getaway, stay calm. You can recover from overspending during your vacation.
In this guide, we’ll explore some tried-and-true ways to help you overcome that dreaded overspending during your vacation. Whether you splurged on fine dining, fancy hotel stays, or souvenirs, we’ve got you covered. You deserve a holiday that isn’t just memorable, but that is also financially responsible.
Take Inventory of the Damage
First and foremost, you have to recognise what damage has been done. It’s no fun to check your bank accounts after a vacation. It’s especially stressful if you know you spent more than you planned, but it’s a necessary part of the process.
Start by reviewing your expenses. Check your credit card statements, receipts, and bank accounts to see exactly where and how you overspent. When you know what went wrong, you can learn from this to make sure it doesn’t happen again.
Create a Post-Vacation Budget
Next, you have to get serious about creating a budget. Your post-vacation budget might be a bit stricter than your pre-vacation budget, and that’s okay. This doesn’t have to be forever.
Develop a detailed budget that includes all of your monthly income, expenses, and a plan to pay off any outstanding vacation debt. You can overcome your overspending during your vacation gradually. When you break it into smaller parts, it’s much less intimidating.
Pay High-Interest Debts First
There are a lot of different ways to make a debt repayment plan. After a vacation, you’ll want to focus on paying those high-interest debts first. This is typically your credit card debt.
Another option is to consider transferring to a zero-interest loan or credit card. When you don’t have to worry about racking up interest for vacation debt repayment, you’ll save a lot of funds down the line. Check your credit rating to determine if transferring your balance is the right choice for you.
Set New Financial Goals
After a vacation, it’s the right time to reset your financial goals. Consider your short-term and long-term goals. Where do you want to be in the future? Where do you want to be in just a few weeks? Find some goal examples below:
- Rebuild your emergency fund
- Pay down credit card debt
- Pay back friends and family
- Temporarily cut unnecessary spending
Goals aren’t one-size-fits-all. Consider the most important things to you when it comes to your budget and start there.
Look for Extra Income
It’s not uncommon to get a second job or a side hustle to support your passion for travel. These trips can be expensive, and having some extra money on the side makes a big difference. Not only can you use these bonuses to afford future trips, but you can put funds towards any existing overspending.
What opportunities make sense for you to earn extra income? You might deliver for a local restaurant, pick up a few hours at a nearby shop, or freelance online. This is a great chance to be creative and find things to make yourself stand out.
Plan Wisely in the Future
Ultimately, the most important thing you can do after overspending on a vacation is to learn from it. It’s easy to get caught in the excitement of being somewhere new and swiping your credit card one too many times. There’s nothing to be ashamed of, but you should choose to make this a learning experience instead of the blueprint for the future.
When it comes to upcoming vacations, plan thoughtfully. Set a realistic travel budget and stick to it. One smart idea is to involve your travel companions in these discussions. It can be awkward to break the ice about finances, but you don’t know if they’re also struggling with their own budget. Encourage communication between your group, making sure everyone is on the same page.
Luckily, it’s never been easier to stay on track with your budget when travelling. Tap into budgeting apps, use discount holiday sites, and become a budget-savvy world traveller.
Stay in Control of Your Vacation Funds
Remember, mistakes happen and it’s okay to make mistakes. We can all relate to going overboard on trips. The best thing you can do is to learn from it and commit to doing better in the future.
It’s freeing to discover how to have enjoyable vacations within your budget. No matter your price point or financial goals, you can discover new places and cultures with confidence. Are you worried about your vacation overspending? You’re not alone, and we can help. Contact a member of our skilled team today on 1300 368 322 to get one-on-one guidance.