You’re dreaming of a vacation. But, you’re worried. You have time available from work. However, your bank account is looking a little thin. As much as you need some rest and relaxation, dipping into your savings as they stand could end up breaking your budget.
Does that mean your dream vacation has to go on hold?
Nope. What you can do is work on creating a vacation budget. This budget can help you set aside the money you need to go on vacation without worrying that you’ve overspent.
Curious about how to create a vacation budget?
You’re in the right place. Let’s take a look at how to do it.
Creating a Budget
A lot of people get overwhelmed by the idea of a budget. But making one is actually pretty simple. Here’s how you can get started.
Decide on Your Vacation
The first thing you want to do is get a ballpark idea of how much your vacation is going to cost. So, you want to have an idea of either the destination or the type of vacation you want to go on. That way, you can start planning for costs such as airfare, hotel, and any other necessities.
To save, consider planning your vacation during the shoulder of off-seasons. You can also try traveling mid-week, which usually saves some money over weekend stays.
Estimate the Costs
Next, figure out the costs. If you’ve got a family of four and you’re flying, then include your airfare and baggage fees. Maybe you need a rental car, or you’re going to a theme park so you’ll have to buy tickets for a few days too.
If you’re driving, include gas and tolls. And, don’t forget food during your trip either. You might plan out breakfast at your hotel and then paying for lunch or dinner. Include those estimated meal costs.
Include anything you can think of to start.
If the price seems a little jaw-dropping, that’s ok. There are always a few things you can do to save. Plus, your budget can go a long way toward covering these costs.
Set Your Time Frame
Once you’ve got your dream vacation and your budget you can work on your time frame.
Ideally, you’re going to want to pick a date in the future. You might need to think a year or two out. That gives you both time to save and also time to jump on any good deals on flights and hotels.
Do the Math
Now that you have your estimated costs and your time frame you can do some math. Don’t worry, this part is easy. Let’s say your vacation is going to cost you about $3,000 and you want to go in 2 years from now.
All you have to do is take your costs and divide that by the time period, in this case, you see that $3,000 divided by 24 months is $125. That means, to have $3,000 ready to go for your trip in two years, you need to save $125 a month.
Finally, look at ways you can save. There are all sorts of things you can do that can add up. Make your lunch every week, don’t go out to dinner more than twice a month, cut a streaming service you don’t use, have a yard sale, or sell some items online on sites like eBay. Every time you have any extra cash put it into a jar that you can deposit into your vacation savings account.
Over time, all your little steps will really make an impact. Then when it’s time to take your trip, you can do so knowing you’ve got all your expenses covered and can focus on having fun.