Last summer, did you go on vacation without a budget? If so, your money most probably dissolved faster than a sand castle at high tide. Nonetheless, it is okay. The prudent and best thing is to learn from mistakes, as well as from the wisdom of other people.
Create a budget
The truth is that you can never spend more cash than you already have. Creating a budget helps you monitor your spending habits effectively. Always know that spending normally falls into three categories. These are:
- Fixed Expenses – These are those expenses you pay every month and which you cannot change for a certain period. Some examples are cell phone, cable, utilities, mortgage, or rent, among others.
- Variable Expenses – Some examples of variable expenses include groceries, entertainment and dining.
- Debt Expenses – Loans and credit cards are perfect examples of debt expenses.
Every month, you must set aside some money for fixed expenses (things you must pay for). Have a budget for the debt expenses. Finally, use the cash that remains on variable expenses.
If you want to travel, you must set aside some money in terms of savings.
Credit cards are not bad. Actually, they are not harmful. Nonetheless, you must know how to use them. The last thing you want is for your spending to exceed your income all because of poor credit card spending habits. Many people struggle with debts related to credit cards. Until that time you will be able to control your spending habits, it is prudent to avoid using credit cards.
Only use credit cards when you have paid off your balances. This way, you will not only be able to enjoy a debt free life, you will also have an easy time saving for your holiday. Take action now.
Organize your debts
The first thing you need to know before getting into debt, you must ensure you know exactly how much you have. For this reason, get your latest mortgage statements, outstanding bills, loan statements, and credit card statements. Get their sum total to find out how much you owe. It might be extremely difficult to discover huge numbers. However, this is your maiden step if you really want to be debt free and enjoy more travels.
Do not fear asking for discounts
Whether you are going to Jamaica or Hawaii for your next holiday, it is always wise to request for a discount anytime you book a vacation. You will be surprised by the amount of money you will save. It might sound like an easy tip but it is surely magical.
Travel entails more than just a destination or an array of photos. It also involves more than just some items checked off on a bucket list. For many, achieving their travel dreams takes time. For others, it takes only a short time. Save more and you will definitely travel more.
Kate Holmes is a Certified Public Accountant with an experience that spans over 10 years. Talk to her about any matter related to finance. Learn more on http://nationaldebtrelief.com/.