While traveling can be a fun experience, it also tends to be a costly and dear. Irrespective of whether you’re traveling for school, work, and vacation or for some other personal reasons, you can be sure about spending more money on the trip than usual. December and January is the time when people travel a lot and all that they return from the vacation with is some good memories and lots of holiday debt. According to a report from the Federal Reserve, outstanding debt balances in America was predicted to extend $900 billion by the end of the year. It is in fact being seen that the total debt amount in the US will cross $3.5 trillion by the beginning of 2016. This includes credit card debt and auto loan debt including mortgage loans, which is at an all-time high.
Consumers resolve to repay debt and put an end to their holiday hangover
As the holiday debt in the US is on the rise, there are many consumers who have put forward their goal of enhancing their financial health by 2016. A national survey by Experian, a credit reporting company, said that a quarter of the Americans have set a New Year resolution to pay off credit card debt or at least pay back the full balance every month in order to reduce the debt load.
Traveling and ways of teaching you finance
Although you might think that traveling makes you spend more than normal, it is not always true. There are certainly some benefits of traveling that you can take into account. Take a look at some such lessons on managing money even while traveling.
- You learn how to follow a budget: There are many forms of traveling which need you to follow a budget for managing your finances. Whenever you’re going to a vacation, you should be having a fixed amount of cash to spend rather than oodles of money. This becomes particularly true when you’re visiting a foreign country where the rates of exchange are too high and where there are dearth of banks. If you’re traveling for office purposes, you will have to spend on the company’s account. Hence, budgeting is something that you can learn from traveling.
- Persuading yourself to save money: When you’re not traveling, you may always feel the urge of spending money even when you need to scrimp. Traveling might also need you to save money for a great vacation and you may even require saving for a plane ticket throughout the country. Hence, if you can force yourself to save enough money, why can’t you save money when you’re not traveling? Why not letting travel being the motivator for your saving goals?
- Appreciating whatever you have: Traveling can even help you incorporate the habit of appreciating whatever you have. There can be nothing better than visiting another city, town or country to evaluate your present financial situation. You might think that you’re in a terrible financial situation but as you’re traveling, you should also keep in mind that not everyone has the privilege and luxury of traveling.
- Prevents you from overspending: It is very easy to overspend whenever you’re traveling, whether you’re traveling for pleasure or work. Until you reach the last few days of the trip, you won’t realize the actual amount of money that you need to spend. Vacation is usually a time to indulge and it is the time to get crazy about your money. However, since you don’t have too much funds with you, you can prevent yourself from overspending. Hence, evaluating yourself financially is a lesson that you can learn from traveling.
- Enhancing your research skills: Majority of the people spend too much time in researching before they take a trip so that they can get the best deals on hotels, flights and accommodations. Whenever you’re planning a vacation, you can easily go to any extent to get the best deals. This automatically improves your research skills and this skill can be utilized for your regular finances too. You can now start researching and buying groceries in order to save money.
- Paying strategically: Majority of the people go on vacations with a fixed amount of money to spend and whenever you do this, you can learn how to pay strategically for things. For instance, you might feel like purchasing tickets for an attraction and then purchase souvenirs with any remaining money. With regards to your regular finances, if you’re on a tight budget, you will gradually learn the art of paying strategically for things.
Therefore, if you’re looking forward to traveling to destinations which can help you keep your resolutions, you can carry on with the search as traveling will directly have a positive impact on your financial health as well.