Travel woes – how to recover financially from a lavish holiday

So, you're back home after a wonderful holiday and ready to work. Good, because chances are you'll have to make sure that a lot more is going into your bank account than out after undertaking a quick review of your financial state.

Many people take holidays because they feel they need to get away from the grind. Sometimes working life isn't filled with promotions, heaps of praise and subsequent pay rises, which is why so many start planning their breaks months in advance.

The smarter people among us will also start saving for their holiday long before they've decided where they're going, but even a cost-effective break can see someone out of the black and into the red.

Most are more than prepared to endure a period of financial hardship in order to afford a lavish break and rightly so. Holidays provide a great way getting away from life back home and seeing what the rest of the world has to offer.

If you're just returning from a break, here's how you can get back on track financially.

Review

Gone are the days of setting aside a pile of cash to spend on holiday and this helping to pay for everything from hotels to flights. If you've used your credit or debit card to pay for anything before or during your break, you might find it hard to work out exactly how much you've spent. 

The best course of action is to contact your bank or log in to your online account to see how much you've parted with. It's at this point that it pays to know how much you had to your name before your holiday, as you'll know how much you'll need to recoup.

Once you know how much you've spent and have set a goal for where you want to be (going on a month-by-month basis is advised), you can start to save.

Change

When it comes to saving, it's important to appreciate how far all the little things go. Changing to a cheaper supermarket or walking to work rather than getting public transport can be just as effective over the course of a month than cutting down on your nights out.

Perhaps the best method is to limit the cost of your everyday living and work from there. Avoid luxury products at all costs and, unless absolutely necessary, stay well away from the shopping centre. 

Develop a mentality that causes you to think whether you really need to buy what's in front of you or if it would just be nice to have. That way you're only catering for your needs and not your wants.

Try something you feel could help you save money and see how much you've stored up over a week. 

Resist

It's amazing just how much 'a few drinks with old friends' can cripple your bank balance, especially when the round is for six people and it's your turn to head to the bar. If you really want to improve your financial state, you'll have to make sacrifices to your social life.

It's not all bad, though. Rather than taking a trip down to the local pub and into town, you could try catching up with your friends in different ways. The kettle holds the answer in this equation, and your friends should be just as glad to hear about your holiday stories over a cuppa as they would with a glass or wine or an ice cold pint.

Track

Be sure to check your progress every week using a money saving mobile app or something similar. That way you'll be given reassurance that you're making solid progress towards your goal.

Lastly, if you find out a few unique ways of saving money after your holiday, always note them down. You might need their assistance when you come back from your next trip across the world.