Due to the spread of COVID-19 across the world, travels have been disrupted from visas cancellations to flight suspensions. Many people are worried and wondering what to do with their summer travel budget if anything at all. Frequent travellers have passed through every level of sorrow, as our hopes for the year have gradually diminished. And while there are still glimmers of hope that late-summer travel can be saved, it may soon be time for acceptance.
Would this summer’s condition be worse or better? Which countries are expected to be safe? Is it a good idea to fly? As soon as the questions are answered, new ones are arising.
Yet cancelled travel plans can have a silver lining, particularly in times of economic turbulence. Instead of spending thousands travelling around the world by yourself or your kids, you now have more time and resources to invest (or save) on other activities. Your summer travel plans don’t need to be tossed out just yet. In this article, we are discussing some helpful ways to reschedule your travel budget for summer 2020.
Increase Your Emergency Savings
If you don’t have money saved up for an emergency, now is the time to start one. In fact, all the thousands you would have spent on travel and hotels can go start to your emergency account. An emergency fund should be kept in a bank account which can be easily accessed, for example, high interest checking or saving account. Therefore, an emergency fund should not be kept in investments, retirement funds, etc. In addition, an emergency fund is funds you can access directly in an emergency. The general rule of thumb is to save 3 to 6 months’ worth expenses in your emergency fund.
Whether you’ve been laid off, furloughed or otherwise adversely affected by the slowing economy, the rainy day may be quickly approaching. So, it is worth putting aside what you can.
If you can, use your money to support your friends, family and society at large. Consider purchasing devices for your family and friends in high-risk environments, such as hospitals and nursing homes, which can assist them in getting in touch. Also, you can put aside some time to FaceTime with your friends and family.
As the crisis continues to rise, many people are searching for ways to assist. Unfortunately, social distancing makes usual volunteer activities all but impossible, so contributing cash is a unique way of supporting this relief effort. Donating a portion or all your summer travel budget to a person or an organization in need provides a significant way to make a difference right now.
Save for a Better Trip
You can consider saving your summer travel budget money for a better trip next year. When the pandemic subsides, you can take your trip. For this trip, you will have upgraded airline seat and hotel room. Who wouldn’t love first-class tickets or five-star hotels?
Take a Road Trip
When the crisis splurges ends and restrictions are eased, it will be the perfect time to take a road trip. Why is that?
- As demand plummets, fuel prices are expected to stay extremely weak.
- Although the toilets at the gas station are not the most sanitary facilities on earth, they beat a packed cabin for the aircraft.
- After several months of hunkering at home, visiting nature could sound more enticing than a bustling international city.
Look into refinancing your mortgage
The Federal Reserve has cut interest rates to almost zero; therefore, right now might be a perfect time to get a lower interest rate on your mortgage. This is one of the few positive outcomes of the uncertainty in the economy.
Apply for Life Insurance Policy
Do you have a life insurance policy? If not, you need to consider purchasing one using a portion or all of your summer vacation funds. A life insurance policy specifies that you must pay an insurance provider premiums over time, and the insurer must pay a lump sum on your death to a specified beneficiary. The funds from your life insurance policy will help pay bills and cover the living costs of your remaining family members.
You may need to change your life insurance policy for significant life events, such as buying a home, getting married or having a kid. Whether you have dependents whom you would like to help or give a contribution to charity, you will need more life insurance than those without dependents or charitable causes to assist. Consider possible future costs that your loved ones may require.
Apply for Health Insurance Policy
During a pandemic like the one the COVID-19 presents, do not wait to apply for one. If you already have one, inspect the fine print since it could be necessary as the outbreak continues.
Do you have a great deductive plan? If not, you need to consider setting aside your summer vacation funds to cover that deductible just in case you or your loved ones need treatment. Otherwise, you would have to pay out of your pocket since it is not covered.
Take Advantage of Optimal Loan Financing
The government’s economic response to coronavirus has several moving pieces. A glimmer of hope is that you may be able to reap the rewards of more amicable policies on your debt. President Trump is currently waiving interest on federal student loans, which may be especially beneficial to those who are struggling to pay off these loans.
Be aware that interest will return as soon as the crisis diminishes. Therefore, this is not a permanent development, but you can still find some relief.
Do Meaningful Activities and Stress Relieving
The goal of travelling is reducing stress and having meaningful experiences. So whatever you decide to do with your summer travel funds, strive not to lose sight of those goals. Here are some activities you can do once normalcy returns:
- Start a side project to help your community
- You can visit local museums, National parks or even the sandy beaches
- Take an art class
- Try a meditation retreat
- Plant a garden