{"id":19399,"date":"2016-06-01T16:00:19","date_gmt":"2016-06-01T16:00:19","guid":{"rendered":"https:\/\/www.expedia.com\/stories\/?p=19399"},"modified":"2021-10-28T16:52:54","modified_gmt":"2021-10-28T16:52:54","slug":"step-step-guide-vacations-budget","status":"publish","type":"post","link":"https:\/\/www.expedia.com\/stories\/step-step-guide-vacations-budget\/","title":{"rendered":"Step-by-step guide to vacations on a budget"},"content":{"rendered":"

Unless you\u2019ve been diagnosed with chronic hodophobia (the irrational and intense fear of travel) you most likely love going on vacation. Most of us do. In fact, many of us love traveling so much that we often go into debt just to get our travel fix; or we sacrifice the frequency of which we travel; or we sacrifice vacationing in destinations we\u2019ve always dreamed of visiting in lieu of more affordable ones.<\/p>\n

The cold, hard reality is that travel costs money. However, with a little planning and discipline, you can experience outstanding vacations that neither break the bank nor relegate you to staying in seedy motels that offer a crack pipe and a can of Raid as amenities. In this step-by-step guide to vacations on a budget, you\u2019ll find tips and strategies for maximizing your travel dollar.<\/p>\n

Develop a long range travel plan<\/strong>
\nMake a list of the places you\u2019d like to spend your annual vacations in each of the next five years. The first four years should be trips that you feel you can realistically afford. Reserve the fifth year for one of your bucket list<\/a> destinations. Whether it be a trip to Paris<\/a>, a Mediterranean cruise, or photo safari in Africa. This trip is meant to be your incentive and reward for managing your budget for the first four years.<\/p>\n

[viewfinder-image-landscape]<\/p>\n

Set your overall vacation budget<\/strong>
\nDetermine the total dollar amount you are comfortable spending for your vacation. This amount will need to cover your travel, accommodations, meals, entertainment, and savings for your bucket list\u00a0vacation. If you\u2019re prone to taking great risks, living on the edge, and partying hard, you should budget a little extra for medical expenses and bail money just to be on the safe side. Here\u2019s a suggestion for how you might allocate a vacation budget of say, $4,000.<\/p>\n

60% \u00a0or $2,400 for travel and accommodations<\/p>\n

20% \u00a0or $800 for meals\u00a0and entertainment<\/p>\n

20% \u00a0or $800 for savings for bucket\u00a0list<\/p>\n

Determine your travel and accommodations budget<\/strong>
\nUsually the two most expensive components of a vacation are getting there and staying there. Travel and accommodations are also the two areas where you can save the most money. There is a \u201cgetting there\u201d continuum that ranges from chartering a private jet (astronomically expensive), to flying first class, to flying coach, to taking a train, to taking a bus, to driving, to hitchhiking (free). The same continuum exists for \u201cstaying there\u201d as well. Your options may range from a five-star, all-inclusive luxury resort to a tent in a campground. Not only can you hit your target by adjusting your choices along each continuum, you can also realize additional savings by booking in the off season, by using loyalty rewards<\/a> to purchase travel, and by bundling your flights, hotel, and rental car with the Expedia app<\/a>.<\/p>\n

Viewfinder Tip: Alternative modes of transportation like train travel can make the journey part of your adventure.<\/p><\/blockquote>\n

Determine your meals and entertainment budget<\/strong>
\nOnce you determine an amount for your meals and entertainment budget, divide it by the number of days you\u2019ll be on vacation. In the example above, if you were staying for five days, you could allocate $160 per day for meals and entertainment. I recommend putting the entire amount on a prepaid credit card and use it for all of your expenditures while on your trip. By monitoring the card\u2019s balance with your smartphone, you\u2019ll always have a good sense of how much you are actually spending and you\u2019ll know whether to order the surf-n-turf or a hot dog when dining out.<\/p>\n

Don\u2019t spend money you don\u2019t have to<\/strong>
\nIt is quite common for most of us to overspend while on vacation. The excitement and emotion that comes with travel can sometimes cloud our judgement and cause us not to make the best financial decisions. Here are some tips to help avoid spending unnecessarily.<\/p>\n