As rainfall in the Lower Mainland continues, many families are trading in their raincoats this winter for sandals and palm trees. Warren Sumner, assistant branch manager at the Cloverdale branch of Envision Financial, a division of First West Credit Union, has some tips to help you make great memories without breaking the bank in the process.
Use cash rather than your credit card
For many families, credit cards provide a quick and easy way to finance a vacation, but be careful—unless you pay off the full amount when your statement is due, the interest adds up. Ideally, you’ll save for your vacation beforehand, but if you need to borrow funds to help pay for your vacation, there are alternatives. Instead use a personal line of credit at a lower interest rate.
Make sure you have adequate travel insurance
Nothing will break the bank faster than having an unexpected medical emergency outside the country. We’ve all heard the horror stories of travellers owing thousands of dollars in medical bills after an unexpected accident. Play it safe and look into travel insurance because it’s better to be prepared.
Travel closer to home
Reconsider your options. Travelling long distances can add up quickly with high fuel costs, airfare and hotel stays. Staycations can be a relaxing way to spend your vacation while allowing you to take advantage of what your local city has to offer.
Start saving now for next year
One of the best ways to not break the bank is to save up for your vacation in advance. Set up a special “vacation fund” account and automatically transfer the same amount from each pay cheque into it.