Making Your Travel Budget? Read This, First!

Posted on: Jan 6, 2023 | | Written by:

Making Your Travel Budget? Read This, First!

Published on January 5, 2023. EST READ TIME: 3 minutes

Imagine you land at your dream destination, hoping to make it memorable and run out of cash within the first few days. You are left with no money to travel or have a decent meal. Of course, this could be a nightmare for any traveller. So make a budget for your vacation spends. However, one can’t predict what can go wrong in a new place or what eventualities you can encounter, this is why, having a travel insurance that can at least cover you against uncalled medical or dental emergencies, flight delays and loss of baggage is a great idea.

Planning a budget – why is it necessary?

Most people embark upon their journey and have no idea how much they need to spend every day to enjoy their holidays without getting broke. If you spend too much too soon this can lead to a cash crunch, spoiling your holiday mood. Moreover, you might not know how to arrange for funds at unknown shores, if the need arises. So, always start your travel plans with proper budgeting.

People who don’t budget also miss out on getting travel insurance before they set out. But having overseas travel insurance is crucial; here are some reasons why:

• Medical emergencies can happen anytime

• Accidental injuries might need expert attention or even hospitalisation

• Hospital bills can dwindle your cash in hand and even your bank account

• You might have to extend your hotel stay for a medical emergency which can be hard on your pocket

• Delayed baggage or misplaced luggage can hamper your holiday mood and ruin precious moments

• Theft or loss of essential documents like a passport might need you to spend some cash to procure a new one

International travel insurance will cover you or assist with most of these scenarios, as mentioned above as well as other conditions included in your travel policy. So, don’t forget to get a travel insurance while planning your vacation.

If you are thinking about how to make a budget for your holidays that lasts you till the end, here are some tips

Start saving early:

Every penny counts. So start cutting down on non-essential expenses – eating out on weekends, laundry (do it on your own), online shopping, electricity bill – savings from these expenses will increase your travel budget and ensure you have enough cash as you near your journey date. Start cutting down on such expenses at least six months before your travel date.

Check the currency rate of the country you plan to travel:

For e.g, if you plan to visit Italy, remember 1 Euro = Rs 87 (approximately), so save accordingly. Check how much you need to spend in a day while sightseeing, travelling and on food. If you plan to spend 100 Euros a day, you will need to save around Rs 8700 for a day. This is just an estimation; your expenditure could be more (or less). Remember, this estimation excludes flight tickets and hotel stays. So, save enough.

Book budget stays:

Look up the internet for options. Budget stays can be comfortable and hygienic too. If you plan to spend the entire day exploring a place, why book an expensive luxury suite? If you are a solo traveller, try dorms, sharing accommodations or hostels. Research deals and compare them online before booking.

Book budget flights:

If you have decided on the place and date, try booking your flight tickets well in advance to save some more. You might get a good deal if you travel non-season. Having international travel insurance in place can also help you get reimbursements for refreshments and essential items in case your flight is delayed.

Save on your travels:

Take public transport as much as possible while holidaying. Renting a car or chauffeur service could make a huge hole in your pocket, so avoid it unless you have saved enough for such expenses. Most locals are eager to help tourists, and they might even tell you about some hidden gems that the maps forgot to mention, as you ask for directions. However, ensure you secure your holiday with travel insurance that covers you against accidents and hospital reimbursements.

Pack all essentials:

Make sure you don’t have to pay extra on essentials like chargers, woollen clothes, medicines or items that become spare later. So have a packing itinerary and tick off things as you pack.

Shop wisely:

Avoid splurging on souvenirs and gifts. Of course, you should get some memorabilia for remembrance but have a strict budget for the same. Use cash while paying the bills, as that way, you spend less.

Buy travel insurance:

Don’t forget to allocate some funds to buy travel insurance. No, travel insurance is not an expensive investment but a sensible one with a manageable premium. For instance, if you are travelling to Italy and you are aged 29 years, you can be insured for up to $100,000 for medical emergencies with a premium that is even less than your weekend lunch bill at a 3-star fine dining restaurant. You can easily calculate your premium with HDFC ERGO’s online premium calculator.

Wrapping it up

Budgeting is not all that fun, but it is necessary, especially if you want to make your holiday memorable and not become broke mid-way through your journey. Get travel insurance beforehand to secure your holiday against medical emergencies and journey-related issues.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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