How to Create a Travel Budget You Can Stick To

So you want to create a travel budget you can stick to but don’t know where to start? These tips will help you determine how much you need to take that vacation you’ve dreamed of and will offer ideas to help you stick to your budget.

Create a Travel Budget You Can Stick to When Planning Your Next Trip

Why Create a Travel Budget or Your Next Trip

There are several instances in which you may want to create a travel budget. If you’re just beginning to save money for an upcoming trip, having a travel budget will help you set realistic goals. It’s difficult to save for a vacation when you don’t know how much money you’re going to need. Once you have started thinking about going somewhere on vacation and in the planning stage, setting a travel budget can be helpful. Additionally, if you’ve got a vacation planned and are counting down the days, having a travel budget amount in mind will help keep you focused and aware in the event of any spontaneous, last-minute spending. The following tips and suggestions will explain why you should create a travel budget and how to stick to your budget. This will ensure peace of mind and the ultimate in a relaxing, no-worries vacation. 

It’s important to remember, however, that a travel budget is just a guideline. It’s not set in stone and you will encounter unexpected expenses along the way. It should serve as a general idea to keep you on track but shouldn’t be the be-all and end-all of a successful vacation. Flexibility is key when creating a travel budget that you can stick to. 

How to Create a Travel Budget

As noted above, there are many points at which you can create a travel budget. It can happen in the planning stage, once you’ve determined where you’re going, as you begin saving or once you’ve already got the vacation booked. Often we have a general idea of where we want to go and what we want to do when planning a vacation, so the first step is to determine where you want to go. We will assume that you’re creating a budget so you know how much you want to save for your vacation. 

Figuring out where you want to go is key since getting there will likely be a large expense unless you’re opting for a staycation. Once you know where you’re going, determine how long you want to stay and where you’ll stay. Do you prefer a hotel or would you rather stay in a rented apartment and live like a local in an Airbnb property?

Create a Travel Dining Budget

If you’re staying at an Airbnb, you’ll likely have access to a kitchen which will help reduce some of your dining costs. You can purchase breakfast items and snacks or hit up the local farmers market for fruits and vegetables. Having these on hand can help reduce the amount you spend at restaurants while you’re out and about. If you opt to stay in a hotel, do some research to find out whether or not the hotel offers a complimentary breakfast.

Find out if there vacation package specials that include dinner or happy hour and appetizers in the late afternoon. Another resource to help create a travel budget around dining is to check out the area you intend to visit on Tripadvisor.com. The site offers hotel and restaurant reviews and will give you an idea of restaurants near your hotel as well as the average cost for a meal. This will help significantly in two ways. First, you’ll have a general idea of how much you will be spending when dining out and second, you’ll get a better sense of what’s nearby to aid you in creating your travel itinerary. 

Travel Budget 

Use the information you learned about where you’re staying to help get a ballpark figure for your biggest travel expenses. You’ll want to check out a few options in terms of flights and transportation depending on where you’re going. Research flights to get an average plane ticket cost. Many travel experts agree that airfare should be no more than 40% of your total travel budget if you’re staying in one location for up to two weeks. If you’re taking a longer trip, this percentage won’t apply. You’ll also need to take into consideration the cost of transportation to and from the airport to your accommodations.

Research shuttles, cab fares, and public transportation during the length of your trip. Depending on where you’re staying you’ll also want to factor in the cost of car rental. A great way to determine transportation costs is with the website Rome 2 Rio. The lets you plug in your destination and gives a comprehensive list of transportation options to get you to and from your destination.

Create a Travel Itinerary to Help You Budget

Be sure to include entertainment during the length of your stay. In addition to the cost of food when you’re dining out, include museums and attractions. You’ll need to research to determine what you want to do, where you’re going and what you want to get out of your vacation. Create a travel itinerary so you have a general idea of what your daily entertainment budget will be. 

Once you’ve compiled these totals, add 10% to that total for emergencies and incidentals like souvenirs and shopping. Because any number of things can happen, like weather emergencies or sickness, consider whether or not it is worth purchasing travel insurance to be sure you’re covered in the event of an emergency.

Tips for Sticking to Your Budget When Traveling

It’s fairly easy to create a travel budget when it’s just in writing. When it comes time to actually travel and implement said budget, that’s when many have trouble sticking to the amount they’ve allocated toward travel. Here are some tips for helping you stick to the travel budget you’ve painstakingly worked so hard to create.

• Choose affordable places to visit, it’s easier to stick to your budget when your travel destination is within your means.
• If renting a vehicle, make a quick stop at a local grocery store to stock up on groceries before you arrive at your accommodations
• If you’re driving to your destination or taking a staycation, stock up on groceries in the weeks leading up to your vacation
• Look online for restaurant and attraction coupon deals, check out Facebook pages in the city you’re visiting for food festivals and events
• Skip the cocktails occasionally and opt for water with a twist of lemon (it’s ok to indulge once in a while but it helps to stick to your budget if you offset the fancy drinks with water. If you opt for an expensive meal, have water, if you head out for the local Taco Tuesday night, indulge in that fancy margarita
• Use an expense-tracking app like Trail Wallet throughout the duration of your vacation
• Try not to make impulse purchases when buying souvenirs, wait a day or two or shop around
• Look into Airbnb Experiences over expensive tours and excursions. Often Airbnb Experiences offer the best of the area with the help of a local tour guide who knows the ins and outs of the area 

How to Deal with Unexpected Expenses When Traveling

Despite how much you plan and work to create a travel budget that you can stick to, there are always unexpected travel expenses. Hotel parking fees can add up, so before book, find out in advance if there are parking fees. Similarly, hotel or airplane wi-fi charges can be a nuisance, research ahead of time and download your phone or tablet with movies or shows to watch while on vacation.

In addition to the 10% you’ve added on to your travel budget, it may be wise to keep some cash on hand for medical emergencies or small unforeseen expenses like a local festival entrances fees. The above tips will help you generate daily expenses, it can be helpful to tack on an additional 2-3 days worth of expenses, just in case.

Creating a travel budget you can stick to does not have to be overwhelming and time-consuming. It’s actually quite fun when you start because it can help get you excited about your upcoming travel adventure.