If you plan your winter/festive season holiday well in advance, you could save yourself from inflationary costs bearing down on you. Read on to know more.
India's retail inflation based on the consumer price index (CPI) has remained above six per cent since January 2022. It hovered around 7.41 per cent in September. Despite this, like every year, the festive season and the upcoming winter months in some parts of the country have given people enough reasons to start planning their holidays. Even as inflation will impact their holiday budget, they still need to prepare for the same.
Says Chenthil Iyer, founder and chief strategist of Horus Financial Consultants: "Festival means holidays, travel, gifts. And this time of the year, we have a series of festivals. And this means a lot of expenses. In the current economic scenario of high inflation, it may be a very difficult time to manage for many people; hence, some expense optimization tips might come in handy. Expense optimization happens when you derive similar or greater value at a lesser expense."
Here are some inflation-beating tips for your holiday plans:
Plan in advance: Planning will always save some money. Says Anant Ladha, founder of Invest Aaj For Kal, a financial planning firm: "Look out for best flight options via sites like sky scanner and even for hotels look out for additional discounts like Taj properties offer additional 25 per cent discount to its shareholders at times. The best way to plan your holidays is to plan in advance as last moments booking will always come at a premium."
Make a list: It would be wise to sit and jot down how you would like a holiday to look. Then, start imagining what you want to do on your trip. Doing this exercise gives you greater clarity and can cut down on unnecessary items and expenses. You could plan a simpler trip and focus on what you and your family enjoy. And you must communicate this to your family, and they would, too, feel relieved and not feel obligated to overspend.
Look out for saving extra money: If you can't find an item on sale, try using a couponing app or credit card offers to see if you can make some money back or earn points toward your purchase. Sometimes apps like uni card or cred can offer great deals and help save cash.
Opt to travel by train: Suppose, for your holiday, instead of taking a flight, you choose to travel by train, and the train happens to be at night. You not only saved on the travel but also saved a night's hotel stay. Isn't that awesome? And you traveled quite comfortably too in an air-conditioned compartment with lot of space to move around for the kids. The scenery you get to enjoy during the trip is a bonus. The challenge most people have that prevents them from choosing such optimal ways is a conflict in their mind of lifestyle & status. "Traveling by flight is considered the norm, whereas train travel may be a little below their status. However, the reality is far from it. Train travel can be smart if you spend some time looking for the right train and booking it a little in advance to get confirmed seats," says Iyer.
Go to a lesser-known destination: Another important way to optimize expenses on vacation is to choose destinations that may be a little less sought after by the general public. "Such places would generally be less expensive, and you would be surprised at the scenic beauty they may offer. More than anything else, less crowded places offer you the much-needed rest and peace of mind," adds Iyer.