This week we present a series of articles entitled “How to Have a Rich Life While Paying off Debt”.
There’s seemingly nothing to celebrate when you’re due for a vacation yet are buried under a substantial amount of debt. But not only are there numerous options for the budget-conscious, innovative ways to maximize one’s opportunities to relax abound. The following guide should not only provide the important steps, but help to get the creative juices flowing regarding any number of possibilities.
- Begin researching and planning well in advance. By looking up fares, packages, and other options for travel and stay in advance, you will not only increase the chances of getting the best possible rates, but also enjoy some of the widest selection and flexibility in planning. Also, make sure to set a total budget for the vacation and plan to meet it, providing room for a discretionary cushion.
- Stay with friends or family, in a cheap hostel or dorm room for rent, and pack very lightly. Lodging is one of the main expenses of a getaway. Minimize the cost of this and your total spending objectives should be met. You will maximize your sense of relaxation when not struggling with a mountain of luggage.
- Keep it short. Vacations in the range of four days to one week are enough for most people to fully recharge. Of course, the longer your vacation is, the more it is going to cost in most cases.
- Grocery shop. We’ve advised those in debt to avoid eating out. This applies to vacations as well. If fine dining is one of the cornerstones of your vacation ideal, then eat in for the entire trip and make the last lunch or dinner of the getaway the night out on the town.
- Cruises. Many cruise lines offer some of the best vacation deals on the market from a per-day cost standpoint. Choose one with inclusive meals and embark/disembarcation locations that are inexpensive to get to, and you’re set.
- Travel as part of a large group. Economies of scale may mean you can get a vacation deal laden wtih value.
- Fit your vacation into your broader game plan. Those who make a clear financial plan are significantly more likely to reduce debt and stay out of it. Make sure the excursion is budgeted. If you splurge on a vacation, make sure that it fits within your career strategy. Keeping a job, and the cash flow that comes with it, is a key source of funds to pay down debt over time. Do not jeopardize this, so try and plan your getaway during slow periods in the office.
- Last minute specials. While planning everything well in advance has its merits, booking last minute might save you a lot of money. There are numerous vacations deals for travelers that can make the commitment at a moment’s notice. If you’re flexible enough for whatever reason to vacation this way, then snatch up one of the offers you can find online.
- Think outside the box. For most, the overarching goal of a vacation is to simply relax and recharge. To this end, there are many options that do not require a journey to the other side of the world nor even a trip across your time zone. You know yourself best – many can recharge in a quiet, rural environment with a decent view.
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
Tags: budgeting, debt, Debt Management, debt plan, debt planning, financial plan, vacation planning, vacations
