Viewing friends’ trips via social media can inspire a sort of FOMO (fear of missing out) that can influence especially younger travellers to overspend because they tend to value experiences more than other generations, says Chhabra.
The pull of seeing acquaintances spend money on travel can often be a more powerful motivator to spend more while travelling than seeing an advertisement, she says. “You want to be on par with what [others] are doing,” she says.
So what should you do?
Rather than creating a budget based on what you’re planning to spend, treat your holiday like you would daily life, recommends Shah.
Get acquainted with the currency and how much items cost prior to the trip. Reading about transport, food and entertainment costs can make prices seem more familiar once you’re actually on the trip. Set up a daily – rather than a weekly – budget based on your research of how much you expect to pay for food, transport, activities and anything else you plan to purchase while traveling so it’s easier to track.
Finally, attempt to pay for the holiday within a short period of time; incurring flight and lodging expenses over a few months makes it easy to lose track of how much you’ll spend on each portion, adds Shah.
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