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Athleisure Mag™ | Athleisure Culture

ATHLEISURE MAG™ | Athleisure Culture
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| PHOTOGRAPHY Yaoqi LAI |

| PHOTOGRAPHY Yaoqi LAI |

HERE'S WHY YOU SHOULD LET YOUR BUDGET DETERMINE YOUR DESTINATION

May 29, 2018

Seventy-five percent of Americans go into debt for vacations they can’t afford but according to USA Today, letting the budget determine the holiday destination instead of the other way around can help travellers avoid debt and even make their money last throughout their holiday. Over 60% of the American population went on holiday in 2017 and air travel statistics showed that 80 million travelled abroad the year before. With these numbers, it is safe to say that travel is now more accessible. However, accessibility comes with a price and it also comes with a great deal of responsibility. 

Covering All Major Expenses

Finance adviser Elyssa Kirkham says that travellers need to match their destination to their budget to ensure that they can cover major expenses such as airfare, accommodation, sightseeing, and food and still have some money left over for other travel costs. Whether the budget comes from a personal loan or money saved specifically for splurging, Forbes says that it is important to stick to the budget to avoid financial regrets. If you are thinking of getting a personal loan to pay for your holiday this year, it is important to borrow responsibly. Computing for how much you can afford to pay per month based on a specific loan term at a certain interest rate can give you a clear answer. This budget will also determine where you will spend your vacation.

Destination Options

To determine the right destination for your budget, you would need to find out which destinations are the cheapest places for travellers. Travelling to any Southeast Asian country is fairly cheap. You can also opt for any eastern European country or go to South America. Once you’ve narrowed down your choices, you’d be able to start your research. It is important for you to take into consideration the things you would love to do so that your destination can provide you with the activities you enjoy without adding more money to your travel budget.

Cost Structures

Determining your destination based on a specific budget can be challenging but you can get an idea about general costs by taking a look at daily cost averages. However, it is important to keep in mind that each destination country has a different cost structure. If you start planning for a trip to Norway, for example, you’d find that major travel expenses such as accommodation, transportation, food, and entertainment are quite expensive. If you compare those costs to a place like the Maldives, you will see that accommodation is expensive too but transportation and food are incredibly cheap while entertainment costs are not as expensive.  Different countries have different cost structures and it is up to you to adjust those costs to make your money last the whole duration of your trip.

Budgeting Based on Cost Structure

The spending average of Americans for a two-week trip overseas is $3,251 according to ValuePenguin.  If you are working with this amount, you can take a look at the average daily cost of your destination to see if it fits in your budget. Take into account major expenses such as airfare, food, sightseeing, and accommodation but don’t forget to include the average cost of local transportation, alcohol, tips, and bottled water. The total cost will give you a better picture of how much you will be spending on your vacation.

Practical Advice

While doing your research, you will find that certain destinations have expensive food while others have hotels and hostels with expensive nightly rates like the example above. Information like this will help you adjust certain travel costs to fit your budget. If you are going to a place where accommodation is costly, you can take advantage of the sharing economy to bring down your costs. Hostels for backpackers or couch surfing are some of your options. If entertainment in your destination is a bit on the pricey side, you can minimize your entertainment expenses and search for free sightseeing opportunities. You can also look for cheap airfare or use rewards points to save on other travel expenses. Travel need not be expensive. You only need to be patient while doing your research to find the right destination for your budget.

 

Read the May Issue with our cover girl Lala Kent

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