How to Create a Travel Budget

Planning a vacation budget well in advance has many advantages. Not only will you be better organized and less likely to run into problems, but you will end up spending less if you can plan in advance how to divide your money. A travel budget is more than just a list of prices for plane tickets and hotel rooms and includes everything that you will be spending your money on once you are away from home.

Instructions

1

Decide in advance how much you can afford to spend on your vacation and how flexible that amount is. Most people tend to underestimate the cost of their vacation, so it's important that you have more money than you think you need, just in case that something unexpected happens.

2

Make four large categories when designing your travel budget: transportation, hotel, food and entertainment. Industry experts estimate that accommodations take up to a third of any travel budget, so make sure you allow enough money for this category.

3

Be flexible. You are more likely to find travel bargains if you are willing to fly at an inconvenient time (such as early morning or late night) or if you don't mind waiting a long time at the airport to change planes. The same is true if you fly in the off season or to an out of the way place.

4

Create a list of places you want to visit and find out in advance what their admission fees are. If you log in to their websites, you may be able to find special discounts or coupons you can use.

5

Factor in extra money for souvenirs, gifts and purchases for yourself. This is the one category that many people tend to skip and one that ends up taking a good part of the travel budget. Some items, such as clothing bought for yourself for wear back home, can come out of your regular budget.

6

Create a budget that can be easily modified. Even if you plan your vacation in advance, it's hard to say what will happen once you reach your destination and new options come up. Leave enough money in your budget so you can add in new things as they come up.