Friday, March 15, 2013

How to budget for vacation (4 steps)

I've always loved to travel,
but travel can be expensive.
When you planned, budgeted and saved for your vacation, you'll be less likely to worry about "running out of money" or even worst, using your credit card for money you don't actually have.
Here's how to budget and save for vacation.
Determine your destination
In order to budget for your vacation, you need to determine where you are going.
For example, a week at the beach, will cost more or less according to where the beach is located, and where you are located.

Price out all components of the vacation
travel insurance (for international trips)

Look for areas to cut costs
Stat with your biggest expenses: 
transportation and accommodation.
Also look at ways to save on meals, as the cost can add up quickly
(we usually plan on eating a simple breakfast and sandwiches for lunch, then eat out at a restaurant)

Determine how much you need to budget each month
Based on all of the above cost,
determine how much you need to set aside in your budget  each month.
For example,
if your trip will cost $2000 and you plan on going in 6 months, you need to set aside $334 each month for 6 months.
If you are not able to save that, look for additional ways to save on vacation, look at alternative dates, 
and/or alternative locations.
(or delay the vacation and give yourself more time to save)

Planning is the key of saving on vacation, saving on groceries, saving for retirement and simply saving for anything else.

Stay Frugal,


Jen said...

Daniela, such practical tips for traveling. I enjoyed reading your post! Makes me want to plan our trips better. Happy Friday dear friend!

Fashion Riddles said...

This is a very good way to plan all kind of expenses!

Deneen@dreaming-n-color said...

saving saving saving,,,,that is what I am doing for Italy.

NanaDiana said...

You are a smart girl and I can tell you are a good money manager, too! xo Diana

Amy of While Wearing Heels said...

What wonderful tips. Now I want to plan a vacation some place :)

Shabby Brocante, Karen said...

Great advice!! I like the idea of a total cost and saving the exact amount each month. it's so simple, and yet we don't always do it!

KC Coake said...

Great tips! I usually look at how much money we have and figure out how to make it work, change things up, etc. But this is a good idea for how to go and do what we really want to do.
I would love if you would share this at my link party.
Take care,

Unknown said...

I admit to not planning very well in the past, this is great (and frugal!) information, thank you Dani

xo, Tanya

Meredith @ The Laundry Can Wait said...

Yes, my favorite quote to say is, "Success is planned." If I did ever travel or take family vacations, I would use your practical and helpful advice.


Kelly said...

Those are some good tips for vacation without debt. We pay cash for our vacation too. We are going to the beach in July and I'm really looking forward to it. Seeing your pic with "RN" on the beach with your girls makes me smile. That is a beautiful beach!

Linda@Coastal Charm said...

Wonderful tips! You will be featured at my NTT party on Monday...please feel free to grab my featured button for your blog (it's located under my header).