Daydreaming of getting away from it all, but don’t think you can afford it? We’ve got news for you: you can! But you will need to learn how to save for a vacation first. Whether you want to relax on a quiet beach or run wild at an amusement park with the kids, you will have to set aside money to cover your travel costs.
From lodging to eating every meal out, one or two carefree weeks away from home takes serious planning – but if you use a budget tracker and abide by some basic financial advice, you’ll be enjoying the sights and sounds of a new city sooner than you think.
Before you run off to get some R&R, you will need a financial plan so you can check off destinations on your bucket list and make memories that will last a lifetime – without excessive credit card debt or overdrawn notices on your checking account.
Here are a few tips to follow if you’re wondering how to budget for a vacation:
- Plan early to take advantage of lower-cost bookings and settle your responsibilities at home
Everyone has moments when they want to jump in the car or hop on a plane and escape to a quiet, relaxing place away from their hectic life. But escaping is more enjoyable when money isn’t an issue, and other responsibilities at work and at home are covered.
Make arrangements early so you’re not scrambling for accommodations during a peak season when others are also planning their own vacations. Saving a little each month toward your vacation can help avoid racking up debt on your credit card that you’ll have to deal with later.
Remember: it’s hard to save for another vacation if you’re still paying off last year’s trip.
- Start saving months in advance to avoid unforeseen and unexpected costs
The longer you save, the better your vacation can be. If your travel fund is already healthy and your usual emergency funds are in order, you can divert some new savings into a vacation fund. As little as $165 a month adds up to nearly $2,000 at the end of the year. If that still seems a bit much, consider that $165 a month breaks down to only $5.50 a day. Enter these numbers into a vacation expense planner so you have an idea of how much money you have for travel.
If you still don’t think you can afford a vacation by squirreling away funds each month, you’ll have to get creative. For example, yard sales bring in a little cash and few households don’t have forgotten clothing and other possessions to spare. If you can pay off a bill such as a credit card or loan, redirect that payment into the vacation fund. Trust us, you’ll never miss it.
- Create budget categories in a trip budget planner to track different expenses like food, travel, entertainment, etc.
In order to get an accurate idea of how much money you’ll need to save for a vacation, it’s important you use a travel budget planner to divide up your travel categories. For example, you might want to have funds set aside for the following categories: food, lodging, airfare, local transportation, etc.