Getting Your Finances Back On Track If You Overspend On A Vacation
Who does not like vacations?
Vacations refresh you. Vacations are blissful.
But unfortunately, vacations can be quite expensive. It is easy to go on a splurge when going on one of these trips. In fact, travel companies depend on your taking expensive packages.
When going on vacations, it is easy to overspend. Since it is a pleasure trip, everything that you do or think of doing, you tell yourself that you totally deserve it. We’re not saying you don’t, but it is not prudent to waste a lot of money on room upgrade, on drinks, on meals outside the hotel, and so on.
These costs add up fast, and can break the spell of your dream vacation. All the strict budgeting done back home won’t help if you splurge beyond your budget while on the trip.
The first step to do at times like this is to be honest. What is the extent of the damage? How much did you overspend, and from where did all that money come? Maybe you used your credit card, or almost emptied your bank account. Once done, make a concrete plan to refill that depleted or affected account.
Repay yourself and stop spending
Here’s what you need to do. You have to set a realistic goal for repairing your personal finance. The goal needs to say how much you overspend or spend during the trip, and how much and how you shall repair the damage. If the money was taken from an account or by using a credit card, say how you shall refill the account or pay back the credit card loan.
If your credit card was affected, pay attention to that first. Even if this expenditure gets you cash-back and spending points, these benefits are offset by the accrued interest when you cannot pay the balance back on time.
Do this: cut back and skip all optional expenses for the next few weeks, or even a few months. But don’t worry! This financial state of affairs won’t last forever.
Plan and set spending limits
When you have recovered your financial debacle created from your previous vacation, and if you are already dreaming about the next trip, don’t make the same mistakes again. Your financial situation depends on it.
Apply what you have learnt from this article. Pay attention to all expected and unexpected costs. Write down how much you are overspending and on what. Before going on the trip, plan everything and have a strict budget.
Keep the budget clear and reasonable. Don’t keep it too low either, or else you may return to overspending once more.