Why Should I Set a Budget for Vacation Travel?

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For some people, vacation is the one time of the year that they really cut loose. Pulled away from the
concerns and schedule restrictions of daily life, it is a vacationer’s one job to have the best time they
possibly can. So the idea of putting together a detailed budget for your vacation travel may seem like
booking a romantic weekend with your tax accountant. What happened to letting it all hang out, to
celebrating irresponsibility, to focusing on unforgettable experiences and lasting memories, not dollars
and cents? Well, at some point you’re going to have to face reality. Unless you’re Bill Gates, money will
always be a concern, and you can’t simply ignore it because you’re going on vacation. So how can you set a
travel budget that not only helps you come home with your bottom line intact, but even adds to the fun of
your vacation?

A budget will help you define your priorities. Do you want to experience a five star hotel, or would you
rather have money left over for that Jeep tour of the outback? Expensive spa day, or surf lessons? First
class airfare, or an extra two days in paradise? Locking in a budget for your trip will help you get to
know what elements of a vacation are the most important to you. It may help you narrow down vacation
destinations, decide whether to plan yourself or go with a travel agent, or even help uncover new travel
ideas you’d never even considered. Think about the above examples. If your destination is far away and
the flight is lengthy, traveling in first or business class may be very important. You wouldn’t want to show
up in paradise with an achy neck and devastating jet lag. But if the flight is short, perhaps you’re better
off spending your dollars elsewhere. As far as the hotel is concerned, think about how much time you’re
actually going to spend there. If lounging around the hotel with lunch served on a private deck is your
definition of paradise, include it in the budget. But if the hotel is just where you stop to change clothes in
between beach trips, your money will be spent better elsewhere. Fancy meals not your thing? Maybe find
housing options that allow you to bring in and cook your own food. You’ll save a bundle doing your own
shopping, money you can happily budget to other areas.

Estimating your spending will save sticker shock on the other side. You’ve worked hard, saving your
money and skipping unnecessary expenses to be able to afford your dream vacation. But without
understanding your spending in advance, you won’t know how to spend on your trip, and may come home
to a big surprise. Either you’ll limit yourself too strictly and regret the missed opportunities, or you’ll
go overboard and spend the next year trying to catch up. Perhaps you won’t be able to afford as good a
trip the next time around. You want those fantastic souvenirs, you need that extra massage or once-in-a-
lifetime resort excursion? Fine. Just build a list of all the things you expect to spend money on (food, hotel
room, activities, etc.), but leave room for unexpected purchases. With mobile technology what it is, you
can even create a spreadsheet to tote along in your smartphone, easily updateable on the fly. You’ll be fully
equipped to make an informed decision about which travel options fit your budget and which do not.

There are lots of resources that will help you set and manage a budget during your travel. Many of the best travel credit cards offer insurance, budgeting techniques, and round-the-clock customer service, even in
foreign countries. Look into their travel agent and concierge services as well. The best tool for your budget
is saving money wherever you can, and with careful planning, you’ll be well-positioned to make the most
of your trip.