Did you know that the average person spends nearly $2,000 on vacations a year? These expenses range from the cost of accommodations to numerous vacation activities and travel necessities. Saving that much can seem like an uphill battle. Fortunately, we’ve got a few tips to help you reach that goal. Check out our complete guide on how to make an efficient and a vacation budget:
Know Your Maximum Limit
The first step is to determine your budget limit.
First, compute your monthly income. Deduct your recurring bills and expenses, such as your mortgage, utility bills, and average food budget. Set aside additional money for leisure activities like going to the movies and then look at whatever’s left.
That’s what you can save for that month.
Multiply this by the number of months you have before the planned vacation trip. The result will be your maximum spending limit. That’s how much you can realistically save with the income and time you have.
Of course, there are ways to go above this limit. You could, potentially, take out a personal loan or pawn jewelry. These will give you some leeway to increase your final budget.
Pick a Destination
Now that you know your maximum spending limit, you need to find a destination that fits into it. Figure out what kind of vacation you desire. You can visit a theme park or enjoy some relaxation time at a luxurious spa and hotel.
Looking for the best resorts? Look for recommended online listings, like the one available at https://www.westgateresorts.com/hotels/florida/orlando/.
Your destination can make or break your budget. A trip to Disney World, for example, can cost you thousands of dollars. You’ll need to consider how big the theme park is, after all, and the fact it’ll take you days to fully explore it.
List Down Necessities
Right from the beginning, note down what you can bring. This should include your bag of clothes, hygiene essentials, and any gadgets for leisure or work. These are the items you won’t need to spend on since you’ll bring them with you anyway.
However, you’ll need to spend on a few vacation essentials. You need to account for dining costs, your accommodations, travel costs, and any health necessities. You might need to buy diapers, medicine and pay for travel or health insurance.
Include expenses you can’t cut out. You’ll need to include expenses for traveling between parks in Disney World, for example. You may have to spend on parking fees and reservation fees.
Begin creating your vacation budget as soon as you get approval for work leave. If possible, start a year before the trip. Some workplaces might not allow you to book for leave that early, so aim for a minimum of six months.
Smart travel planning requires an early boost. If you start planning now, you’ll be able to increase your maximum budget. You’ll also be able to hunt down discount vouchers, cheaper vacation plans, and make room for emergency spending.
There are a few airlines, resorts, and destinations that give discounts to people who book early. Take advantage of those early bird packages.
Look For Packages
Speaking of packages, the vacation industry thrives on them. The competition is tight, given how many travel agencies there are and tour destinations. There will always be an option for a cheaper package that already covers most of what you need.
Look for a package that includes accommodations, prime tourist destinations, fun activities, and dining.
Packages can seem like a lot at first glance. However, the benefit is that the costs go down the more activities or locations you add. If you book a package that requires more people, you could lower the costs per person even further.
Start a Savings Timeline
Once you’ve done all of the steps above, start planning your savings. You already know how much you can save per month. Get a calendar or an app and start listing down financial goals.
List down major milestones. If the vacation is a year away, note down that you should hit 50% of your target budget by the sixth month.
Doing this will help you visualize whether or not you’re on track.
After listing down the bigger milestones, list down smaller ones. Write down weekly goals. Note areas in your calendar when you know you can’t set aside savings due to bills or other expenses.
Take Advantage of Promos
Always look for promos! You never know when they might become available. Frequent your favorite agencies, resort web pages, and other sites to look for discount vouchers and vacation getaway coupons.
A promo could give you a discount on your accommodation. You might find one that grants free parking at a theme park. You can find promos that allow you to bring one extra person for free or at a discounted price.
Keep in mind that promos only last for a limited period. They might have other stipulations too. For example, you might be able to use a dinner discount voucher only if you have four people at the table.
Use Travel Credit Cards
Travel credit cards work like regular ones but with one difference. Instead of traditional cash-back rewards, you can convert points to miles. Accumulate enough of these, and you can get a flight for free.
Other travel credit cards convert those points to grant you hotel discounts or theme park discounts. You might be able to use reward points for destination restaurants as well.
Make an Efficient Vacation Budget Today
Now you know how to make an effective and a vacation budget. Start early, know your limit, and hunt down vouchers, promos, and tour packages.
Of course, these aren’t the only tips we have in store for you. Continue reading through our library of posts today for more guides on travel, fashion, vaping, and technology.