How to Properly Finance your Dream Vacation

Fira, Greece - Town of Fira on Santorini island, Greece.

If you are planning to go on a trip somewhere far for your long-awaited vacation, you will need to prepare a lot of things, especially your finances. Most people, when asked about their dream vacation, their statements would almost always end in “Yeah, well, it is a farfetched dream. I could never save enough money like that”. It is justifiable though, as nowadays, people tend to view it as a dream that would never happen, at least that is how they think it is.

But then, let us ask ourselves, why not? If you think of it, people tend to spend money on things they don’t need. If you spend the money on more important things like saving it for a holiday in the Maldives, you might just cut it.

In reality, everyone’s financial statuses vary greatly, from part-time employees to business owners. One thing is common for all of us, though as every one of us can save money. If you want that summer vacation to happen, you should probably change your spending habits and the way you handle money. Changing the necessary aspects of life might be just what you need to finally have a dip in a beach on a summer paradise summer in the world.

Vacation Financing

If you haven’t heard of vacation financing already, basically, it is a combination of your credit card, your savings, and a loan. If you don’t have savings for the last few years, and you don’t want to pay that much with your credit card, you might consider a loan in CreditNinja.

In reality, financial advisors will go all out to prevent you from going for a loan for a vacation. A vacation is just a luxury, and going in debt because of that is something deemed unwise, which is a point you need to consider. If you still want to go for a loan, you might be stuck with high interest in the future that requires for you to pay each month, which is avoidable if you saved for your holiday instead. Not to mention, you will pay less if you collect.

If there is a little semblance of difficulty in your current loan or your one of your past ones, you might need to consider backing out of planning for a loan. If you think you will also be having difficulties if you apply for a one, then don’t. Not being able to pay your regular payments on the loan will have adverse effects on your credit score, making it a struggle for you to apply for investment in the future.

Top view of Padar Island in a morning from Komodo Island (Komodo National Park), Labuan Bajo, Flores, Indonesia

Saving Money

Of course, you won’t be able to generate your summer budget without actually saving some money. It is a necessary first step for that vacation, and it is crucial in assessing your financial plans on the incoming months. If you set the budget, you will know how much money you must save whether per week or month.

To do this, you might want to choose where to go first. Upon selecting a place to go, you must anticipate each destination you want to go in that particular country, the amount of money you spend on each one, the fare, and every emergency you might encounter.

Israeli money stack of the new Israeli money bills (banknotes) of 50, 100 and 200 shekel. New Israeli Shekel series C.

Personal Loans or Credit Card?

Personal and credit card are your go-to-methods you can use if you want to finance your travel. While having a loan gives you a fixed payment, fixed schedule for repayment, and a fixed interest, credit cards will let you borrow money on the go and will only let you pay the amount you borrowed. Be careful though as credit cards tend to have higher interest rates. It is also good to know that both things are easy to apply for on the internet.

Travel credit cards are really handy as there are some good features like baggage delay insurance, cancellation/interruption insurance, and prevention of foreign transaction fees. The best thing about travel credit cards is that you can earn travel rewards that you can use to defray to reduce the travelling costs or you can save it up for future adventures.

Probably, the only downside of these kinds of cards are there interest rates. If not checked properly, you might be surprised of the repayment that you will have to pay. The best thing you can do is that before applying for a credit card, check the handbook for the instructions and rules.

Whether you choose either a loan or a credit card, always check for the perks, rewards, and other features that comes with them. If you are undecided, you can compare both for the better one.


A vacation on a dreamy summer paradise is not all that bad. But let us face it, it is more of a luxury than a need. And also, you will face struggles in financing it, and it might get you in trouble later if you don’t prepare for it extensively. If you are determined to go, it is best if you weigh down all the pros and cons if you go on a far journey. But still, sipping margaritas under the shade of the summer sun on the beaches of Maldives is not a bad idea if you ask me.

Tiffany is a full time content writer and constantly contributes articles in various websites. She usually writes about real estates, travelling, finance, and banking. In her free time, she plays various board games like chess and the like. She is currently into sodoku.

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