During the long Songkran holiday, many people meet friends or travel long distances home. When family gathers, there are gifts and large meals. Some spend whatever they have to enjoy the festive atmosphere, leading to "temporary wealth" that ends with facing reality—bills and savings accumulated since the year's start gone.
If we want to avoid hardship after the long holiday, let's start comprehensive financial planning.
Whether from social media or research, it is found that Thai spending during Songkran usually divides into three main parts: 1. Travel costs 2. Food and socializing 3. Gifts and souvenirs. Each person’s spending proportions vary, with some spending tens of thousands, especially when fuel prices soar as now.
When asked how much Thais spend, the University of the Thai Chamber of Commerce reported that during Songkran, the average domestic travel spending per person is about 8,056 baht. By 2026, overall spending is expected to decrease compared to previous years, but over 67% still maintain travel or activity plans, mostly opting to travel within their province rather than long distances.
Therefore, even though prices rose overall by 4.56% this year, including fuel costs, most Thais adjust plans to focus on more economical travel. So how do we plan our finances to enjoy but avoid long-term burdens?
The biggest challenge today is rising prices and extra expenses from special festivals while incomes remain stagnant. How can we plan finances to sustain long-term?
1. Clearly allocate your budget and spend within your means.
Before allocating "travel money," list all necessary expenses and bills. The 50-30-20 rule is recommended: 50% of income for essential expenses, 20% for savings, and 30% for enjoyment. We must not exceed these budgets.
For those who have set aside travel money for Songkran, it should be kept in a separate savings account to clearly see how much can be spent during the festival. If paying by credit card, transfer cash from this Songkran account to cover the credit card bill at month’s end.
During Songkran, spending may be higher than usual. One can choose to economize on other expenses to allocate more funds for holiday enjoyment.
2. Use expense tracking apps.
All holiday spending should be recorded clearly to monitor if you have exceeded your budget. You can log expenses in a notebook or an app like Set Happy Money, which categorizes expenses and tracks assets and liabilities. For those who dislike manual entry, MeowJot automatically records spending if payments include receipts.
3. Do not use emergency funds.
Many keep emergency funds equal to 3-6 months of essential expenses but may think borrowing from these during holidays is acceptable. This is a warning sign because if these funds run out and unexpected events occur, one might have to take high-interest loans to cover issues, creating unexpected debt.
4. Always check promotions before spending.
With rising fuel and product prices, it is essential to seek promotions and discounts for the best value, such as app coupons or credit card cashback offers on fuel purchases.
5. Avoid incurring debt, especially informal loans.
Loans that are easy to get often come with high interest or special conditions for urgent needs. If borrowing, read terms carefully to know repayment dates and avoid interest that exceeds the principal. Most importantly, avoid informal or illegal loan apps, which can cause long-term financial problems.
These are just some tips for financial planning during Songkran. If these five steps do not fit you, try adjusting or finding new techniques that suit your situation. Avoid extreme frugality that could increase stress.
References: Financial Planning Association, The Stock Exchange of Thailand, MeowJot.
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