Tips to Determine a Suitable Budget for Travel

The planning process is one of the most exciting aspects of travel, researching the best places to visit, what to see and do when you get there, hotels, and so on, but when it comes to creating a suitable budget, it can be a bit overwhelming. The last thing you’d want to have happen is to run out of money while you’re traveling – unless you have an unlimited resource of money, whether you’re going to an all-inclusive resort or backpacking while camping and staying at hostels in Europe, every trip needs a budget.

Figure Out What You Can Reasonably Afford

 

If you don’t already know how much you can reasonably afford, keeping in mind all of your usual expenses from your rent or mortgage payment to utilities, food and so on, determine that first. You don’t want to spend everything you have on vacation and then come back and have no money left at all.

According to CreditDonkey, the average vacation costs $1,145 per person, or $4,580 for a family of four, however that number can vary significantly, depending on whether you’re planning on driving just a couple of hours and staying with family, couch surfing in Europe or taking a long-haul flight for a luxurious vacation in Fiji.

Transportation: Getting There

 

The first factor to consider is how much it will cost you to get to your destination, unless it’s just a few hours from home. Airfare can account for as much as half of one’s travel budget, so you’ll want to do plenty of research to find the best fares, and, if possible, be flexible with your dates. A simple Google flights search is one of the best ways to compare, and you can also sign up for the tracker to get alerts when prices go up and down. Simply type in Miami to London, for example, with your desired dates, and you can look at a full calendar to see if you can save by leaving a day later or earlier.

Transportation at Your Destination

 

Unless you plan to stay at a resort the entire time, you’ll probably need to think about transportation once you’ve arrived at your destination. Do some research to find out what other travelers do, is it a place where most people get around in their own vehicle? You may need to rent a car. Public transportation is often a great option in may places as it’s inexpensive and can provide more of a local perspective too. Uber and taxis may be other options as well. In most cases, you can easily determine the costs with a little Google research.

Accommodation

 

Accommodation is another big part of any travel budget, and depending on the type of vacation you prefer, it can also vary dramatically. You don’t need to book your accommodation just yet, simply determine the type, such as hostels, Airbnb, bed and breakfasts, hotels or resorts. Do some research to find out the average rates and then multiple by the number of nights you plan to be there to get an idea of your total lodging cost.

Food

 

Food can be hard to estimate. If you’re hoping to spend as little as possible, try and book accommodation that provides access to a kitchen so that you can save by cooking some of your own meals. Staying at a place that includes a full breakfast each day can help too – fill up in the morning, snack during the day and then limit yourself to going out to dinner. If you’re traveling to Europe, New Zealand or Australia, dining out is usually close to the same cost as it is in the U.S. or a little more, but destinations in Southeast Asia, Central and South America are likely to be cheaper. Again, Google research is your friend.

Tours and Activities

 

What do you plan to do during your vacation? Think about all the activities, entrance fees, tour costs and so on and put them into your budget as they can really add up. To trim back a little, do some research to find out some of the free things you can do in your destination and perhaps treat yourself to just one or two paid activities. Walking is one of the best ways to explore and it won’t cost you a dime.