How to Make Your Vacation Fit Your Budget

Everybody wants to travel at some point, but unfortunately, travel isn’t free. In fact, the average vacation in the United States for one person alone has reached over $1,500 for a week-long vacation. This means building an effective budget is important prior to set off on your journey. Whether you’re traveling with family or by yourself, start by determining what type of vacation you’re looking for, followed by building out your budget.

What Are the Common Types of Travel Options?

Before getting started on your budget, you’ll need to narrow down the type of vacation you want to go on. There are three general categories you need to choose an answer in before you can start setting your budget:

Domestic vs. International

First, you need to determine if you want to stay domestic for your travels or turn your sights internationally. Keep in mind that while currency exchange rates may be in your favor, flight costs won’t be. For those planning on a tight budget, staying domestic may be the best choice.

City vs. Nature

After deciding whether you’re remaining in the U.S. or not, you need to figure out if you want to visit a city that offers a wide range of activities or go on a nature trip with less variety in activity type. This will help you further narrow down which part of the country or world to consider.

Leisure vs. Activity

Finally, once you have chosen to stay domestic or go international, along with choosing to stay in a city or nature, you need to figure out if you want a leisurely vacation or one full of activities. For example, those wanting a domestic leisurely activity in a city might enjoy the beaches of Miami. However, those looking for an international nature excursion chock-full of activity might enjoy a Scotland trip.

5 Tips for Sticking to a Budget

Once you have decided on the type of vacation you’re looking for, you can build a list of places that meet your criteria. Using that list, you can start to design your budget while keeping what you can afford in mind. Use the following five tips to avoid deviating from your set budget:

Plan your activities in advance.

You’re far more likely to spend money during a trip if you don’t have activities planned. By preplanning them, you will have an itinerary and less opportunity to drop extra money. Additionally, you can plan activities that combine other activities, such as New York sightseeing tours that take you by famous landmarks.

Look into alternative housing options.

While hotels have many comforts that people have come to love, they aren’t the cheapest option for accommodations anymore. With an average nightly cost of $125 for a room, it’s understandable to want to look elsewhere. For those with families, options such as Airbnb and other vacation rental sites may offer cheaper rates.

Make use of public transportation.

Rideshare services, while convenient, are expensive, especially on a vacation where you’re traveling around multiple locations. Consider taking transportation instead and making it an activity in and of itself. The famous railway line of New York City is a fantastic example, but even taking the bus can save you heaps of money when planning your budget.

Use point rewards on credit cards.

For those who make use of travel credit cards, reward redemption offers at hotels and for activities are a great way to save money on your vacation. Partner hotels may offer discounted nightly rates, and activities could be completely covered by points. Visit your credit card travel portal to see destinations with a large number of redemption options.

Track expenses daily

While responsibility is the last thing anybody wants on their mind while they’re supposed to be relaxing, the rising price of vacations means it’s crucial to be conscientious about spending. Track your expense on vacation (that weren’t preplanned) so that you can be sure your discretionary spending isn’t exceeding your budget. Contrary to popular belief, it is possible to plan a fun vacation while sticking to a budget.

Be responsible while having fun on vacation.

Nobody wants to think about money while on vacation, which is why setting a budget ahead of time is so important. By doing this, you won’t be thinking about the cost of an activity because it was preplanned and pre-booked. Have fun on your vacation but stay responsible and avoid falling into debt during your travels.