Budgeting Tips for Any Trip

Obviously, everyone’s idea of a vacation will be different. 

• International?
• Domestic?
• Airplane?
• Road Trip?
• Camping?
• Long weekend vs. full week (or more)?

The one thing that every trip has in common is the need for a budget.  We are frugal people and want every dollar we have to work for us.  So, we plan ahead for as many financial details of each trip as we can.  Advance planning helps us fit more in and avoid panic when surprises or unexpected expenses occur.

Some of the categories that we include on our budget spreadsheet when we are planning a trip are:

Airfare.  This is a large purchase.  We browse (not purchase) online right away to see what tickets cost to our desired destination for our dates, so we can start saving up.  I recently heard a travel industry expert suggest that people would travel more (because they would save a lot of money) if they designed their budget and picked their time frame for traveling first.  THEN, find a deal in that price range for those dates rather than starting with the destination in mind. We have not tried this yet, but it makes perfect sense.   Obviously, if you are taking a road trip, you can eliminate this category.

Lodging.  When we travel overseas, we like to stay at unique inns, B&Bs and, sometimes AirBNBs.   Domestically, we have been using Marriott.  Now that we have a nice high status in that organization’s rewards program, due to our domestic travels, we might begin to use a combination of points and cash for our vacation lodging.  Large hotel brands have options in other countries.  It will remove some of the “character” that we prefer, but we can always mix it up (some chain, some private inns).  Domestically, you can usually find something from your brand, and you have some idea of what to expect in terms of room, food, amenities etc. When selecting a nightly cost that you are willing to pay, remember to include taxes and fees.  After all, a $100/night room, doesn’t really cost $100/night, does it?

Ground Transportation.  I am going to guess that this is one category where many people under-budget.  Be careful here.  If a traveler is thorough, it can be surprising how fast expenses in this category add up.  This category includes: rental car costs, subway/bus/train costs, ferry costs, parking, tolls, gasoline.  There was a two-week trip that we enjoyed some years back and when we looked at all the places we wanted to go (and how to get there), we realized we needed to budget $600 in this category.  That’s a chunk of change for any budget!

Bonus tip: There might be weekly passes that you can purchase for subways, buses or trains. Figure out how often you will need these services and do the math.  A pass might save you money.

Activities.  This includes the admission fees for all the things you think you might want to do.  Put it all on there.  You likely won’t get to do all of it, but that’s okay.   Just remember not to throw in the entire guidebook.  Select 1-3 activities you genuinely feel you would enjoy (and be likely to actually do) for each day.  Using this method, leads to a lot less disappointment.  Imagine running out of money six days into your seven-day vacation.  It also allows you to prioritize the things you consider “must-sees”.  Set aside money for those first so you know you won’t come home from your road trip disappointed because you couldn’t afford the entry fee into Yellowstone.

Bonus tip: Cities that rely heavily on tourism often have “City Card” programs that allow you discounted or free entry into a list of sites once you’ve bought the city card.

Food.  For my husband and I, we know food is our major vice.  We love it!  Therefore, we tend to estimate high on our food budget.  Often, we pick a dollar amount for breakfast, one for lunch and one dinner.  Then, we multiply by the number of days in our trip.  This ensures we have enough if we splurge on a couple of fancy meals and also gives us some “flex money” that can be moved to other categories later if we are nearing the end of the trip and see we haven’t spent all our food money. If the lodging offers a free breakfast, then we often eat a nice, big breakfast before sightseeing for the day.  We find we are not hungry for lunch this way.  Sometimes we just have an afternoon snack.  This could be something we are carrying in our backpacks or something we buy from a street vendor or local shop that we split.  Then, we budget for a sit-down dinner at a local, non-chain restaurant (often one that specializes in whatever the area is known for).

Souvenirs.  This category includes things we might want for ourselves and items we might want for others.  We try to make a list of all the people back home that we want a souvenir for.  We are always surprised at how long the list gets!  We can then pick a dollar amount that we feel is reasonable and multiply.  We have also taken many vacations where we chose not to buy any souvenirs for ourselves and were simply satisfied with the photos.  Regardless of the situation, we always budget something for the souvenir category to avoid being taken by surprise.

Bonus tip: We are not buying physical souvenirs right now since we are “HomeFree,” but one day when we are stationary again, we plan to blow up and frame many of our favorite travel photos.

Incidentals (medicine, toiletries).  This does not have to be a big category, but it is wise to have something set aside for cold medicine you weren’t expecting to need or stamps or even bank fees (usually related to international travel) that might arise.  I don’t usually stop at convenience stores during a road trip to buy snacks/drinks, but most people do.  Make sure to set a budget for these kinds of purchases. Those iced coffee drinks and chips add up fast!

Insurance.  I have purchased trip cancellation travel insurance on my flights before but, that is the extent to which I have used travel insurance.  There are products available though, that cover much more than that.  It is possible to purchase travel insurance plans that cover: delayed baggage, gear/baggage coverage, overseas dental, overseas medical (including: terrorist attacks & assault) and even death overseas.  Obviously, during the current global crisis, a traveler would need to read the fine print on everything to see if coverage is being handled differently than it would under normal circumstances.

Starting a budget like this early in the planning process helps you travel more often because you are more likely to redirect “extra” money at the end of the month into your travel savings account.  We also find that it motivates us to FIND extra money every month.  Did I really need to eat out with my co-workers four times?  Maybe two of those times I could have gone to the restaurant with them to hang out and then eaten my brown bag lunch when I got back to my office.  Did I really need that knick-knack from TJMaxx/Ross/Kohl’s/Target?

Remember, someday this darn global health mess will be over.  When it is, and we can leave our living rooms again, we will all want to see something new & different.  Happy planning, everyone!