Here’s how to spend responsibly on travel, according to money experts.
Shelling out for trips shouldn’t get in the way of more important expenses. “Travel is a want,” says Rowena Suarez, financial planner and chartered wealth manager. “Make sure that your needs are fulfilled first... If traveling will affect your budget for your children’s education, or future needs, then it is not advisable.”
CREATE A SEPARATE FUND
You don’t have to wait for your investments to earn before you travel, as some experts advise. “That is not necessarily true, as long as you have disciplined yourself to set aside money for travel over a period of time without hurting your monthly budget,” says Suarez.
Jeremy Jessley Tan, financial planner and columnist at The Manila Times, advises, “Set up a travel fund and set aside a certain amount, either weekly or monthly, so that when there is an opportunity to travel, it won’t impact your savings or investments.”
IT SHOULDN’T GET YOU INTO DEBT
Using your credit card? Don’t just charge on a whim—first make sure you actually have funds to pay off your credit card bill. “A seat sale is not a sale when you intend to get into debt just to be able to purchase a ticket. When you plan ahead, then a seat sale becomes a bonus, because you get a discount from your planned budget,” says Tan.