How to save money so you can travel more

Parikshit Balochi, the radio host of Dubai-based Bollywood music channel City1016, has traveled to more than 90 countries since moving to the United Arab Emirates in 2010, but before that he didn’t have a passport.

The 33-year-old admits that as a full-time worker, he has no choice but to manage his monthly budget, especially after a long and expensive holiday.

“I try to spread my travel expenses over a period of time, for example, for a trip in July, I try to finish my flight expenses in June so the pressure of paying everything at once from my salary is reduced.” Mr. Balochi, who visited Turkey, Maldives, Estonia and Switzerland last year, speaks.

“I put everything I earn on the side into my travel fund. Travel isn’t cheap, so I suggest applying for a good credit card with travel benefits. It will help you spread the costs and reduce the burden of paying everything at once.”

More than two years after the coronavirus pandemic brought the aviation and tourism industries to the ground globally, the sectors are experiencing a faster-than-expected recovery in demand.

Holidaymakers plan to have bigger travel budgets this year than in 2021, with average spending increasing by around 20 percent, according to a June survey by insurance company EuropeAuxiliaries.

The survey, conducted by Ipsos, polled 15,000 people in 15 countries.

However, 45 percent of Americans and 41 percent of Europeans cited financial considerations as the main reasons for not traveling this summer, the survey found.

“Travel is not cheap and one money management tip I believe is to try to save on accommodation,” said Mr Balochi, who has traveled to Albania and Armenia this year and plans to visit three other countries this summer.

“When I’m visiting a country, I’m mostly out of the house. So, the room is only good for six to seven hours of sleep. Staying in hostels was a long phase of my life, and I still do.”

As well as saving money on hotels, Mr Balochi has cut back on eating out at expensive cafes and restaurants and buys food from supermarkets instead.

Unless you’re going to an experiential destination like Santa Claus Village in Rovaniemi, Finland, or a glass house in Estonia, or the Maldives, try to save. Money on hotels, says Mr Balochi.

He’s currently on a trip to Vienna and France, so he’s already trying to cut costs.

“I know people who buy new clothes and accessories for travel, but when you travel as often as I do, these are insignificant,” he said.

I traveled with only three t-shirts for an entire week’s trip. It also saves you baggage fees on low-cost airlines.

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Mr. Balochi, who says his vacations to Brazil, Peru, Bolivia, Mexico and Cuba are the most expensive, always differentiates between expensive and budget destinations.

“When I say expensive, I mean faraway destinations where airfares are expensive to get to. “That holiday is always on my annual leave and I usually take three weeks off,” he said.

“I don’t have travel preferences. I want to explore everything and travel everywhere. I often try to take shorter flights on long weekends.”

He plans to travel to Australia, New Zealand and Canada next year.

Before you can imagine yourself in that dream hotel, you should start your journey by examining your current financial situation and determining your net worth (total assets versus total liabilities), says Joseph L. Am, deputy general manager of digital wealth manager Stash Away Mena.

Review your savings and make sure you have enough money to book accommodation and flights, making sure you still have extra cash to spend.

“If you have current debts, realistically assess your repayment plans and how much and when you can afford to start saving for the holidays,” says Mr El Am.

“Remember to be realistic and analyze when and where you can go and then if you have enough money.”

It’s important to prioritize your financial goals and consider what you need to do to achieve them, he says.

If you have any type of high-interest debt, such as credit card debt, be sure to prioritize that classification. In addition, make sure to build a cost safety net of six to nine months, which will come in handy during uncertain financial times, Mr El Am said.

Once you understand your financial situation, you can start budgeting for the holidays, but make sure you do this in advance and give yourself plenty of time to save, he says.

“You need to know exactly how much you need to save each month,” says Mr El Am.

“Never leave it to the last minute when it comes to booking flights and hotels. Airlines and hotels will increase their prices towards your travel date, so be sure to factor this into your savings plan. Consider buying a package deal between flights and hotels to keep costs down.

When planning a trip, sometimes ground transportation can be overlooked. Do your research and make sure it makes sense to rent a car, use Uber or local public transportation, says Mr. El Am.

says Sophia Bhatti, wealth manager at Dubai Chartered.

Avoiding tourist-heavy months means hotels and flights will be cheaper. You’ll also find fewer people and shorter waits for the attractions you visit, she says.

It is also important to prepare an expense budget before the trip.

“You can set spending limits before you travel, which can prevent you from making expensive choices. Track your spending during the trip and make sure you don’t go over your budget,” she says.

Consider signing up for apps or even credit cards that offer cash-back benefits, airline points and entertainment and food and beverage discounts, but be sure to use them carefully and in moderation, Mr. El Am said.

Many have fees attached, so do your research, but always make sure the fees and benefits work for you and your plans, he says.

Ankita Rajendran, a 33-year-old group marketing manager in Dubai, who has visited 60 countries on seven continents, and her husband Anand Mohan, a material planning manager, prepare a budget and set aside a portion of their income for investment, rent. , monthly utilities, emergency funds and travel – respectively – at the beginning of each year.

“This will help us understand our cash flow situation and give us peace of mind knowing there is a safety net,” said Ms Rajendran, who has traveled to 10 countries this year and “plans to hit a few more rare gems before the end.” of the year”

My number one tip is for people to set aside six months worth of their average monthly expenses before planning frequent trips. Do it diligently.”

She also advises first-timers to take it slow and look for easy destinations that are close to the UAE and can be covered in a long weekend.