When going on a vacation or taking a trip, it’s all too easy to spend, spend, spend. After all, it’s vacation, right? Soon into your trip you may find that your hard-earned savings to fund the experience start dwindling away much more quickly than anticipated. Be proactive: set a travel budget and a vacation food budget.
It usually happens that we under-budget. This is usually due to higher than expected costs. Large portions of your budget such as travel, accommodation and meals or unplanned expenditure can be difficult to calculate exactly.
As long as you perform due diligence during the initial planning of your trip, you shouldn’t be too far off. Here are a few tips on what to include in the travel budget and how to make it work.
Establish a Travel Budget
Advance Travel Booking
Do the research if there is a choice of destination for a vacation – a trip to Europe, for example, needs a bigger travel budget than one to South East Asia because of the higher costs of accommodation and food. A few online searches will indicate if it will be cheaper to arrange travel well in advance or to wait a few months until closer to departure time to get last-minute deals. Shopping around for budget packages that include travel and accommodation options is also a good idea.
Setting a daily travel budget provides a useful guide and one that should govern how expenditure pans out. Always build in a contingency to cover eating out, local transport costs, spending money, and unforeseen circumstances.
It is possible to use prepaid travel cards that can be loaded up with a set amount in the local currency before departure. However, these can prove difficult if on a touring vacation and visiting countries with different currencies. Cash alternatives may be too bulky to carry easily.
Online money transfers
In case of emergencies, it is best to have a number of different financial resources available. It is equally important not to let this be a temptation to over-spend. For example, when traveling on a budget it might be useful to take a supply of cash for most ordinary purchases.
It makes sense to keep a debit card or ATM for cash withdrawals, plus to carry a credit card. Be strict, however, and use emergency funds only in an emergency. Alternatively, set up the option to manage money online. To find out how online money transfers work check out.
The great thing about online transfers is that they can be done quickly, and the facility is available worldwide.
Stick to the rules
Before setting off on a trip, decide what rules will apply when it comes to making choices about spending money. If Italian shoes are irresistible, budget for a new pair when taking a vacation in Europe. If local crafts are always tempting, make sure the budget includes an allowance for them.
Save in advance for what you consider to be must-have items. Taking these precautions and sticking to your travel budget ensures that all your vacations and trips abroad will leave you with happy memories and not debt.