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7 tips to get out of 'vacation debt'

By Abhishek Agarwal
November 02, 2015 13:15 IST
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Going on a vacation is so much fun and you can't wait to take a good break once in a while but at the same time there comes a lot of expenditure with it. The better the vacation the higher its cost; this does not mean you do not go for a holiday at all! You work so hard and you deserve a break but you don't need to be very reckless with your money while you are on one!

Here are 7 ways you can get out of debt after going on a great holiday!

1. Start saving before you go!

Well, you are all prepared and your vacation dates are booked! The most basic money has been spent (e.g. flights, hotel stay and a general budget set aside for shopping, tourist sites and traveling etc., and you might have gone a slightly bit over budget too, that is normal but that means you start cost cutting NOW while you are still days away from your break. Begin with cutting down on dinners, lunches and movies. Collect money that you would usually spend and put it back in your bank account as recovery money.

2. Once you are back, make a money recovery plan and stick to it

Plan an amount to save you think would make you happy. It could be 50 per cent of the money you spent on your vacation too. Be easy on yourself and decide on an amount and recovery time and stick to the plan. You'll be surprised how easy it was to earn back the money you've spent.

3. Admit that you have overspent and discipline your mind about the upcoming days

The most important part of finding the solution is knowing the problem. Define the problem, know what went wrong and act on it with a good plan. Prepare your mind that the days to come ahead are going to be tight and on budget and you can do this!

4. Get the support of technology or friends or your family to help you through this journey

You've got great apps like Spendee or Walnut to keep your daily expenses in check. If you're not a very tech person, maintain a diary like the olden days or ask friends and family members to keep you in check. The support of others or technology will make it a piece of cake for you to recollect all that vacation money spent!

5. Find an extra source of income to support you!

Find another way you can earn some spare pocket money so you don't dig out your usual expenses from your salaried account. Extra sources of income are always easy and a quick method to get back all that lost money.

6. Find the one thing in your daily life that costs you a lot of money and try cutting it out

Everyone has this one activity that costs a lot of money and they probably have another route to cut down on it, so why not access that and work on it? Supposedly you spend too much money on fuel then take the local transport for a few months and save on fuel money or you like to order food or snacks every evening with your office mates and end up spending Rs 200 every day. It may seem like a small amount but if you multiply it by 31 days it turns out to be quite a lot! So how about making some awesome snacks at home and getting that instead of ordering outside food? This will keep you healthy and money-happy too!

7. Whatever your plan is, go easy on yourself

Don't make sudden changes to your routine or cut down on like a whole meal or something in a day. Ease into it and you will find a way and will be able to save more than just cutting to the chase and saving a huge chunk of your money by torturing yourself on the way.

Photograph: Antonio Machado/Creative Commons

The author is Co-founder and Director Credit Vidya.

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Abhishek Agarwal