Sticking to the Holiday Budget

Even for the most frugal of people, holidays are a time for indulgence, so the idea of imposing restrictions can be a mood kill. But never fear: there are ways to stretch your cash so that you can enjoy a memorable vacation without worrying!   

Sticking to the Holiday Budget: Preparation  

It may sound obvious, but it’s important to not only think about what you’re going to spend on your trip, but how you’ll pay. Do you prefer cash or card? If you’re planning to take cash, be sure to shop around for the best deals. You may find it’s cheaper to order currency online and have it delivered; or, if you have a credit card, certain providers offer a preferential exchange rate. The key thing is to avoid changing money at the airport – a study by The Independent illuminated the ‘atrocious’ rates offered at airport bureaux de change, stating that, on a £1,000 transaction, ‘the difference between buying and selling rates is more than enough for a return flight to New York’.  

Another thing to consider is setting a daily budget. This is best done before you embark on your trip – that way, you’ll know exactly how much money you have to play with overall, and how much you’d like to set aside for each day of your holiday (you could even categorise this by food, tips, excursions, and other costs).  

Sticking to the Holiday Budget: Travel Insurance  

If money is tight, eschewing Travel Insurance might seem tempting – but this could prove costly in the long run. Travel insurance, after all, isn’t just about peace of mind: it also provides valuable protection against unexpected expenses. Best of all, it doesn’t need to cost the earth.  

For a relatively small fee, travel insurance will cover you in the event of:  

• Delays.  

• Cancellations (or missed departures).  

• Damaged, delayed, or lost baggage.  

• Additional expenses (for instance, if you’re required to pay for extra accommodation due to a travel delay).  

• Health issues.*  

*Medical cover is more important than ever in the post-Covid world, and at Cherry Godfrey we offer substantial Covid travel cover from just £9.53. Our comprehensive Travel Insurance will protect you both before and after your trip (for example, if you catch Covid-19 whilst away and have to isolate, or are told to isolate by a government agency, then Additional Expenses and Medical Expenses are covered; similarly, if you catch Covid before you leave and your trip is delayed or cancel, cover is available).  

One important note: do always remember that the cheapest policy isn’t always the best value for money – and never forget to read the small print! To make sure you’re getting the most effective cover for the right price, we’d highly recommend discussing your requirements with an experienced adviser.  

Sticking to the Holiday Budget: Cash or Card? 

In recent years, using cash when travelling has become less popular (particularly amidst escalating concerns about hygiene following the pandemic). Indeed, a 2021 survey revealed that a quarter of British people did not wish to use cash at all. Fortunately, there are now a plethora of options for overseas spending.  

Credit cards, as ever, remain an option – and with a bit of research you can find options that don’t charge exchange fees (some don’t even charge interest or withdrawal fees for getting money out). For sticking to a budget, however, we’d slightly favour a pre-paid card: that way, you won’t be tempted to go ‘over’, as the money in the account is all that you can spend.  

Sticking to the Holiday Budget: Pay in Local Currency   

You may be asked whether you’d like to pay in Sterling or in the local currency – and typically you’d be wise to choose the latter. If you pay in local currency, the transaction will be converted back to your home currency at the point of sale, which tends to be better value; if you choose to pay in Sterling, you’re likely to pay an inflated price.  

Sticking to the Holiday Budget: How to Use Your Phone  

To roam or not to roam? That is the question… and, for travellers with a UK contract, it’s been made more difficult by the introduction of new roaming charges within the EU (following Brexit). Using data abroad can be very expensive – and you can spend without even realising, because it’s not only browsing the web that eats into data, but also phone updates and app upgrades (which can happen in the background without your knowledge). With this in mind, for many travellers it’s simpler – and safer – to switch data roaming off entirely.  

But what if you need to use your phone and can’t rely on free WiFi? If you want to avoid a big bill, there are a few options. First of all, you could set a spending cap: this will mean that you’re unable to exceed a certain limit for usage, thereby avoiding any costly surprises (implementing a spending cap is usually easily done via your provider’s website or app, but if in doubt give them a call).  

If you’re planning a dream vacation and want to ensure you get the very best deal for travel insurance, don’t hesitate to contact Cherry Godfrey. We’re here to make sure your holiday goes off without a hitch. Please feel free to submit a callback request; pop in for a chat with one of our friendly team; or start a quote online today.