Ah, holidays. A time to relax, unwind, eat good food, spend time with the family and return home refreshed and ready to take on life again. Casual check of bank account and….whaaaat? We spent HOW MUCH? Unfortunately, that chilled holiday mood is quickly replaced by panic and anxiety, followed by the realisation that you will have to spend the next few months paying off that couple of weeks escape. Suddenly, real life returns, and regret sets in about that extra cocktail and the fancy restaurant because, why not? ‘We’re on holiday after all!’ The gentle lapping of the waves at your toes as the hours tick by feels like some distant memory. Sorry to be a party pooper but money matters while on holiday, just as calories still count (I wish they didn’t, believe me!).
Just because you do due diligence before you go by getting good flight deals etc., doesn’t mean the budgeting stops there. There are ways to enjoy your holiday and not blow your budget. Go on a well-deserved vacation while still saving and investing for your future. During the booking process, the answers to the questions where and when really do matter. Travelling outside of school holidays if you don’t have children will save you a lot of money on flights and hotels that you can then use for spending during your vacation. Also consider travelling to a place where your home currency will go further. For example, you will get a lot more bang for your buck in Thailand than the UK. However, wherever and whenever you are travelling, there are ways of enjoying your holiday and sticking to your budget.
Here are my top 7 tips.
1. Research the best way to convert currency before you go on holiday
Generally speaking, it’s advisable to exchange money before you travel, especially if you’re travelling somewhere unknown to you where the language is different. Currency conversion desks in airports tend to overcharge so only use these as a last resort. Try banks or large currency exchange houses such as Al Ansari or Lulu Exchange. Check for fees and exchange rate to ensure you’re getting the best deal.
It’s also worth checking what your bank charges for foreign transactions on your credit card as well as ATM fees in your destination. You may find that you’re rewarded with extra credit card points for using your card abroad, but the fees might outweigh those rewards. While you’re checking this with your bank, make sure you let them know the dates you’ll be travelling too. That way, they won’t block your account for suspicious activity if you use your card on holiday.
2. Pre-plan activities
This can help you establish how much money you need to exchange and take with you. Look at the area you are staying – what attractions are in the vicinity? What do restaurants generally charge? Can you look at a few menus online to figure out general costs? What sorts of activities are you planning to do? If you’re sightseeing, what are the entrance fees for museums and other places you will visit? It’s great to be spontaneous while on holiday, but no planning whatsoever might equate to a money mishap. Perhaps map out ¾ of your days and leave the rest to ‘whatever you feel like doing at the time’. Honestly, your wallet will thank you.
3. Use cash envelopes
This is the ultimate holiday hack and probably the one that will save you the most money. If you exchange cash before you go as outlined in tip 1, then plan your activities as explained in tip 2, then you should be able to stuff cash envelopes before you go for different categories. Categories could include eating out, sight-seeing, beach, pool days, room service, kids’ entertainment etc.
Although this might seem restrictive, it’s actually freeing and allows you to fully enjoy your holiday, knowing that you have budgeted for it. When you put that extra meal on your card with a starter and dessert because ‘we’re on holiday after all and YOLO’, do you ever get a niggly thought in the back of your mind? Can we afford this? How much have I actually spent at these restaurants? I’m dreading looking at the statement when I get home…paying from a cash envelope will alleviate these anxious feelings.
Obviously having a lot of cash is not always safe in all countries, so you may do some cash envelopes and some credit card purchases. Or ask your hotel whether they have a room safe or place to keep valuables before you go so you know whether it’s safe to take a large amount of cash. When you’re out and about, only carry enough cash to pay for that outing.
4. Consider self-catering accommodation
Consider self-catering accommodation or a hotel that includes a kitchenette. This is a must for me now that I have 2 children to feed as eating out as a family of 4 can quickly add up. This doesn’t have to mean that you never eat out, but the times that you do will be more special, and you could enjoy a high-end restaurant guilt-free if the rest of the time you’re cooking at home.
Other ways you can save money on accommodation and food are by staying in Airbnb or researching whether there are house-sitting opportunities in the area, especially if you are travelling during a school holiday. People might have pets or just want someone to stay in their property for security reasons, and you could end up staying in a beautiful house for free (except utility bills). An added bonus is access to laundry facilities, so you don’t have to pay extra for the service.
Obviously, you should weigh this with the benefits of staying in a hotel, for example quick and easy pool and beach access. In summary, there are options to have a luxurious but frugal family holiday if you do a bit of research.
5. Eat local
The price difference between local eateries and tourist restaurants can be eye-watering. Eating local ensures you have a more authentic experience of the place you’re visiting too. I backpacked across South Africa, Zambia, Zimbabwe, Botswana, Australia, New Zealand, Peru, Brazil, Bolivia and Argentina when I was 23 and some of my best memories are getting to know locals, and my largest saving was eating at local cafes instead of luxury tourist restaurants. This freed up money for experiences, such as sky diving, white water rafting down the Zambezi River and diving with great white sharks (yep, back before I had kids I did indulge in a spot of adventure!). As long as the place is clean, go ahead and give it a try (keep some Imodium handy just in case though!). This sort of activity helps children broaden their life experiences too.
6. Supermarket snacks are your friends!
Stock up on snacks and drinks and pack a cooler bag for days at the beach or by the pool (if the hotel will allow it). A lot of my tips mention eating, but the biggest areas that people overspend while on holiday are food, accommodation and attractions/entertainment. Tourist areas know this and overcharge for snacks and drinks, aware that children often get hangry! You would be surprised at the amount you save by going to a local supermarket and buying juice, fruit, packs of raisins and nuts and cereal bars. This is especially useful if you’re doing a lot of walking with children, such as around a museum, zoo or theme park.
7. Try the public transport
This is where planning helps save you money. If you give yourself plenty of time to get to your attraction or day out, you could try the bus or train system in the country (obviously if it’s safe to do so). Again, the experience will be more authentic and will save you a lot of money in comparison to hailing a taxi. Waving down a taxi means waving goodbye to your holiday budget!
If you will be travelling about quite a bit, consider renting a car or even staying in a campervan. You have to decide what type of holiday you want and then research the options available to you. But taking taxis all the time will eat into your budget and what would you prefer – the comfort of an air-conditioned taxi or going jet-skiing (insert any memorable holiday activity here)?
In summary, researching 3 major areas (accommodation, food and entertainment) before you leave as well as planning how you will pay and how you will travel can save you a small fortune while savouring your precious holiday time. You can still enjoy time at the beach or sight-seeing but making a few small changes can keep your budget on track. Make sure you start a sinking fund for your holiday spending beforehand and give yourself plenty of time to save to take the stress off your monthly budget.
P.S. One last thing before you rush off to pack your bags – souvenirs and gifts… Think carefully before buying that trinket from the market stall – will it end up collecting dust on a shelf? Or worse, be thrown away? Often, it’s not the souvenirs that we appreciate long after the vacation has vanished – it’s the memories and the photographs. You can still give money to the market stall owner if you would like, but bringing a bunch of souvenirs home is overrated.
The same goes for buying gifts for people back home – do they really want a tacky trinket from a place they never visited? Or a fridge magnet cluttering their kitchen? If you really want to buy gifts for people back home, consider buying them something they can use or wear. Possibly a scarf that they can wear in your home country or some food or toiletries. For example, I like to bring people camel soap from the UAE as it’s something a bit different and exotic, but they can use it and it won’t sit around on a shelf or at the back of a cupboard.
All that’s left to say is Bon Voyage! It is possible to have a budget break, enjoy it to the maximum AND invest for your future! Happy holidays 
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Good luck on your financial journey – congratulations on taking the leap.