How can you finance your vacation without damaging your budget?

Holidays are a period that many people look forward to every year. It is one of the most effective ways to relax from the stress of everyday life, disconnect from the monotony of your work, meet new places and spend time with friends and family. However, the first concern associated with vacations is how to get the money to pay for vacations?

Certainly, going on vacation is not cheap, starting with transportation, hotel, food, even tourist activities. The first thing that you have to take into account is the budget planning, hence you can evaluate the different funding sources available.

 

Savings

piggy bank

This is the safest option to pay for your vacation. The reality is that you must consciously save on certain expenses and save a quantity of money per month to finance vacations. You must realize that saving in the long term implies great discipline. It is recommended that annual holidays do not spend more than half of monthly income or in other words 5% of income per year. If you want to make a more expensive trip you should save one year and the following year make the trip, but always trying to approach the previous limit.

 

Credit card

Credit card

If the saving is insufficient, a good option is to resort to credit. However, it should always be in a smaller proportion in relation to the total cost of the trip and looking for preferential rates to avoid the effects in your pocket coming from the high interest rates of the credit cards. This is because when hiring a credit of any kind you are contracting a debt that you must repay with the agreed conditions. In addition, the expense for this purpose must be commensurate with your economic level to avoid unbalancing your economy.

The advantage of credit cards is that you can get the money you need immediately and without too much paperwork or paperwork. In smaller amounts they can be a good way of not suffering the direct impact of contracting a debt.

 

Loans

Loans

Bank loans are a good alternative because, unlike credit cards, they have a very convenient interest rate and fixed monthly installments that are unchanged from 6 months to 4 years. In the same way, grace periods can be extended up to two months in case of arrears. If you are going to choose this option, do not forget that loans should usually be requested with some time in advance and require a lot of paperwork, even though this is not guarantee of approval, since banks evaluate different requirements to approve personal loans.

If you want to avoid this paperwork, there is also the option of urgent online loans online as a quick solution to last minute financing problems in a more flexible and secure way.

In this case the most advisable is to schedule the installments so that you spend the least possible time in paying them, since you will spend less on total interest and obviously you will not have paid more than necessary for your vacations.

 

Rent your house as an accommodation in AirBnB

Rent your house as an accommodation in AirBnB

If you are going to be absent from your home for the time of your vacation, you can rent it from AirBnB and with that money pay the accommodation where you are going. More and more people are using AirBnB as a substitute for hotels and the best thing is that you can establish your availability and price according to your conditions. Do not worry if strangers do some damage to your house and what is inside it, AirBnB has insurance in case of property damage.

 

Get more benefits from a high interest savings account

Get more benefits from a high interest savings account

Everyone has a basic savings account and most are not interested in the interest rates they get because it is quite small (in a range of less than 1% percent). People who wanted to save money in the long term also had the benefit of banking entities freezing their money in a Certificate of Deposits. This Certificate of Deposit offers interest that can reach up to 2%. Its main disadvantage is that the money freezes and can not be withdrawn from the account for a certain time.

Online savings accounts, also known as high-yield savings accounts, offer the client an interest as high as a Certificate of Deposit, with the advantage of being able to deposit or withdraw money without problems. These accounts do not have bank cards, no checkbook, they are only available online. In an easy and safe process in most cases, transactions can be initiated from other bank accounts linked to this same online account.

 

Have a garage sale

Have a garage sale

There is nothing better than traditional sources to finance your relaxing time. Obviously you can not finance the entire trip by selling old or damaged things in your backyard. However, it is a good way to get extra money cleaning your house from objects that no longer have any use.