Set an intention for your trip
When beginning to plan for your trip, sit down with family or other vacation goers and decide what the goals are for the trip. Consider these questions when discussing:
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What are activities that you or your family want to do?
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How long do you want to travel for?
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Where do you want to go?
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How do you plan on getting there?
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What kind of lodging best suits your plans?
Estimate your budget for travel
Once these questions have been discussed, start building a preliminary budget for your travels. Keep in mind that sometimes your travel expenses begin before you even step foot out the door. Consider these phases of your trip in your budget:
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Preparation expenses
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If planning for international travel, you may need to purchase or update your passport and visa. Travel Insurance may also be a safeguard to help bring a little peace of mind for your trip. Don’t forget to check on your luggage and travel gear!
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Actual vacation expenses
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The largest foreseen cost of your travels will be the accommodations, tours/activities, food/drink, and the airfare or the gas required.
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Emergency funds
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In case of an emergency, consider having money available but separate in case of emergency: stolen or lost credit cards, unforeseen but unavoidable expenses.
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Create a savings timeline
Once you have an estimate for your travel budget, it’s time to break down a realistic timeline of when you would like to achieve it. Take stock of what you already have saved that you can use for this vacation, then determine how much more you need to save.
To give yourself a more tangible amount of what you need to save monthly, divide the total you still need to save by the number of months between now and your trip.
If you still need to save $2,000 and your trip is 6 months away, then you need to save roughly $333 a month to meet that deadline.
Track your spending and adjust your budget as needed
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Try a new budget method. If you haven’t budgeted before or the process didn’t work for you, learn about different budgeting methods and consider trying one out.
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Review spending for the previous three months. Look at your purchases and compare them to the priority of your vacation.
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Cancel nonessential recurring subscriptions
Tips for sticking to your vacation budget
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Expect the unexpected – include a slush fund in your initial budget. This way you can afford spontaneous opportunities and solve problems if they arise.
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Set a daily budget – You don’t have to abide by a strict daily limit, but you’re more likely to stay on target when you start your day with an idea of how much you can spend. Keep in mind what activities you are doing each day and adjust your daily budget accordingly.
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Consider off-peak travel – Find out what times of the year are most expensive, least expensive, and in between for your vacation destination. That in between time is where you can often find the best combination of price and weather, making it a great time to travel.
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Choose budget friendly activities – Shows, museums, and tours can be expensive. Have you and your travel companions list out what activities are must dos. Prioritize from there what activities fit into your budget and timeline.
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Hit the grocery store – Buying just a few items from the grocery store could mean big savings on breakfast, lunch, snacks, and drinks.
The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.
