What is the cost of Travel Insurance in Nigeria?
Although the holiday season calls for its amount of luxury, relaxation and fun, it can be very easy to get carried away with spending. Truth is, you might end up racking up a huge credit card debt to deal with when you get home. While money shouldn't be the only thing on your mind while you're enjoying a holiday, here are some common money mistakes that you can avoid to keep your financial situation safe at the end of the summer break.
1 Not Budgeting
When the holiday fever is in full swing, it's very difficult for most people to keep a hand on their finances, especially when the holiday comes at the end of a stressful year. To avoid over spending and running out of money half way through your vacation, set up a budget before you leave and get good idea of how much money you can actually afford to spend.
2 Impulsive Buys
Buying impulsively almost goes hand in hand with going on holiday. With sales, discounts and enticing activities screaming at you all day, it's very difficult to say no to unnecessary spending. One helpful tip when you face this situation is to ask yourself if you really need to spend that money. By prioritizing your spends, you might actually find yourself saving (or at least no spending) some money during your holiday.
3 Overusing your Credit Card
Having a credit card can be handy at the best of times but it can also get you into a lot of trouble if you don't use it properly. Making use of the benefits offered by a credit card, the occasional shopping could earn you some discounts. However, you shouldn't turn your credit card into your go-to payment device. Depending on the amount of cash you allocate to your credit card, it's best to limit your credit card purchases for necessities such as petrol, groceries and dining. Another tip before leaving: have a look at your credit card fee policy for withdrawals and payments abroad. Indeed, depending on your bank, fees might be high and you'd rather change cash on your arrival rather than withdrawing or paying abroad.
4 Last Minute Spending
Last minutes spending is rarely a good move for your wallet. Whether you're rushing to find the perfect gift or you're rolling through the grocery aisles to get what you need, spending without planning will almost always get you spending more than you need to. Rather than spending money on items you don't really need, take time to plan what gifts you want to buy and what goods you want to take on your road trip or holiday.
5 Overlooking Entertainment Costs
Holidays are about having fun, relaxing and indulging in a few luxuries that you wouldn't normally delight in. And while all of this makes for a pleasant holiday, it is easy to overlook the aspect of money when you're faced with extra entertainment costs. To avoid spending too much money on one or two activities, take your entertainment costs into account and make sure that you budget according to what you really want to do on your holiday. If you are not a planning freak, just budget a contingency amount for unexpected expenses!
6 Being Careless with Cash
It's really important to be vigilant on holiday and not get caught up feeling too care-free about your money. Although this might go without saying, but be sure to keep your cash and wallet safe wherever you go. Be careful of pickpockets' and chancers who thrive off careless tourists roaming their cities.