I love planning vacations. I have found that the best time to plan a vacation is one or two years in advance. Planning is a great way to ensure your funds are in order and you travel well. It is a good idea to start with a budget. It will determine how and when you can travel. I want to share with you the best tips on how to create a travel budget.
It will include cheap flights, public transportation, a rental car, and travel dates. I will share when staying at a hotel suite with a kitchen versus a simple room to save on food costs. Finally, I would like to discuss the need for travel insurance. All these things should be included in your travel budget based on how you would like to travel. The key is when you start saving and how much money you can save each month.
It starts with creating a travel sinking fund versus raiding your emergency fund. The best way to do this is to set up a separate account for your vacation. After determining where you would like to travel, research the cost of airfare, hotel accommodations, excursions, food, or groceries, and travel around the town.
Will you need to rent a car or will public transportation be available? However, if this is a road trip you must ensure the vehicle is in tip-top shape. Also, you will need to budget for gas and tolls. What additional clothes will you need or what you own already will be sufficient? Travel expenses can begin to add up as you explore each of these items. Let’s jump into the best tips on how to create a travel budget that lets you enjoy your trip without worrying about paying for it later.
Cost To Travel
Whether you are a no-expenses spare traveler or a budget traveler with little money you should use Google or your favorite search engine to get started. You must find Flights, hotel accommodations, and rental car costs to plan your trip. Make sure you check the reviews to determine if this is the best place for you to spend your money. You do not want to feel like you are not getting what you paid for. Budget travelers should always be careful not to pick the cheapest places to stay or the cheapest airline. Remember, you get what you pay for.
The timing of your trip, meals, activities, and entertainment are additional expenses to be added to the cost of travel. Finally, travel insurance, clothes, and the required toiletries.
Timing
Once you have picked your destination you will want to determine the best time to travel based on the cost. I like to travel during the shoulder season. This is the time between the low and peak season. It typically means traveling in the fall or spring. We always liked to visit Disney World or Universal Studios in Orlando Florida in April or May.
We found the lines to be the shortest. There are always fewer crowds and lower temperatures. We have enough time to enjoy both parks in the same week. However, November to March has been proven to be the best time to travel. It is the prime shoulder season but there are peak times between mid-December and the New Year. Hence, avoid these periods to enjoy smaller crowds and cheaper hotel prices. If you cannot travel during these times here is what you can expect traveling by season.
Seasons To Travel
Spring is the best time to check out outdoor activities. At this time nature is about to bloom. It is a great time to visit botanical gardens and open trails. If it is still too cold then opt for museums and live shows. This is a great time to visit Mediterranean Europe.
Summer is high season travel time as the children have school holidays. It is the time when most parents and people plan to take a vacation. The crowds are the largest and higher costs for hotels and airfare. It is a good idea to avoid the Southwest due to high temperatures. However, Alaska would be the perfect time to visit.
Autumn is the best time to avoid the crowds and enjoy the fall coloring at most national parks. The weather is free from the oppressive heat of the South and crisp air is just starting to emerge in the North.
Winter has the smallest crowds and the best travel prices. This is the best time for skiing on the East Coast or hiking on the West Coast.
If you still need help Kayak.com has a tool to help you determine the best time to travel to your desired destination.
Travel
Once the destination and travel time are picked, you can determine how you want to travel. Depending on the location, your bank account, vacation time, and your ability to drive determine how you will travel. I love a road trip within the United States. This is a beautiful country with lots to see. However, anything longer than five hours will require me to look at low-cost airlines. If you are on a tight budget the timing of booking your airfare is important. Domestic airline tickets should be booked one to three months before you depart on your trip. You should purchase international flights two to eight months in advance.
By Air
You can book these tickets directly with the airline of your choice or use various online services to book your trip. Here are a few to consider Google Flights, Kayak, Opodo, Hopper, and Airfarewatchdog. You can also use Booking.com to compare and book flights. Sunday is the cheapest day to purchase a ticket and Thursday is the cheapest day to fly. Try to book and fly on these days. However, be aware of many traveling-related fees, such as baggage and seat fees, flight insurance, cancellation or change fees, etc. The top two cheapest airlines are Frontier and Spirit. The top two most expensive airlines are Delta Airlines and Southwest Airlines.
By Car
If you opt to travel by car you must determine if your vehicle can make the trip. The first step is to ensure it is roadworthy by having a mechanic service your vehicle. The second step is to determine how much gas you will need to purchase for the trip. Thirdly, make sure it is within your budget or if it is cheaper to fly. Gas is expensive and so are tolls. Also, plan to spend money on snacks and meals while traveling. You can save money by brown bagging snacks and a light lunch. Finally, ensure no mileage restrictions if this car is a lease. In this case, you may opt for car rentals.
Hotel
If you cannot use a spare room provided by family or friends you must find affordable hotels when you travel. The good news is there are great hotel rooms to meet your needs. You can call the hotel of your choice directly. Many hotels offer discounts if you sign up for a loyalty membership at no cost. If you are a senior many offer senior discounts.
When choosing where to stay a good place to start is your level of comfort and the amenities the hotel offers. Some offer free breakfast, pools, gyms, etc. You can also find a good deal using third-party websites to book your stay. Research Hotels.com, AAA Travel, Bookings.com, Tripadvisor.com, Expedia.com, Kayak.com, or Google. Some of these companies will also have membership discounts. However, your choice should be based on the desired accommodations, price, and location.
Meals
Dining out can be very pricey if you need to stay on budget. If you pick a suite-type hotel it could include a small kitchen to prepare meals for you and your family. Your personal finances will dictate if you can eat out or must cook your meals. This will require a trip to the grocery store to stock up the pantry. If you have family in the area they may be able to help you out with a meal or two. When budgeting travel costs the best plan would be to create a line item for food in your sink fund.
Transportation
Once you arrive at your destination you may need a car rental or local transportation. This will depend on the city you are visiting. New York City has an excellent transportation system. You can easily get around via subway, bus, commuter rails, taxi, ride-share company or walking. In some areas, you will need to rent a car. Forbes has ranked the top car rental companies. The top two are National and Enterprise. When we stayed in Nashville, our hotel provided a chauffeur to take us to and from various tours in the area we wanted to visit. It was a great travel experience but very bougie.
Activities
What do you plan to do on your vacation? Whether your destination has planned events or you are exploring a new vacation spot there will always be plenty to see and do. You can take in a show, visit a museum, visit historical sites, explore beaches, visit amusement parks, visit local markets, or hike in the great outdoors.
However, many may want to hang out by the poolside soaking in the sun, reading a good book, or listening to music. You are on vacation so it is all up to you. In most hotel lobbies, there are pamphlets advertising all the attractions the vacation spot has to offer. You can also visit the local tourist office to see if there are free walking tours or other attractions.
Travel Insurance
I have mixed feelings about travel insurance. I purchased travel insurance for business. However, I did not always for personal travel. For instance, if the trip is several thousand dollars and I plan it months in advance, I will opt for travel insurance. However, I will not if it is a weekend getaway booked on short notice. I will not because many of them did not let you cancel for any reason. Per U.S. News & World Report here are 6 Best Cancel For Any Reason Travel Insurance Options.
The top two are Travelex Insurance Services and AllianzTravel. I recently used Allianz Travel and did not have to make a claim. That is one reason that they are not always practical to purchase. Travel insurance will cost between 4% and 12% of the total cost of your trip. If your trip is $5,000, the travel insurance could cost between $200 and $500.
Budget
Once you have done all your research it is time to create line items. To begin your budget you will need all the costs associated with your trip. To calculate the cost of hotel accommodations, food, and local transportation you must have the number of days for your stay. You must budget for entertainment, souvenirs, and any additional clothes and toiletries for your trip. If you plan to bring a travel bag on the plane to save on baggage fees you will need travel-size toiletries (3.5-ounce size containers). However, if all your clothes do not fit into carry-on luggage, you will need to check your luggage. Let’s create a mock travel budget for a 4-night stay.
Airfare $400.00 (round-trip within the United States)
Hotel $800.00 ($200/night stay)
Transportation $ 200.00 (car rental)
Food $400 (eating out for five days)
Entertainment $300 (Amusement parks, tours, theaters)
Souvenirs $100
Additional Clothes and toiletries $500
Grand Total $2,700.00
If you plan to add travel insurance you must add $108 to $324 to the budget to cover this additional cost. Check baggage fees are $35 for the first checked bag and $45 for the second on domestic flights. Adjust your budget to include these fees if applicable. Please note these fees may vary from airline to airline and whether you check bags online or in person.
Now is the time to set up a sinking fund, a separate savings account for your vacation plan. For the mock travel budget of $2,700.00, you will need to save $225 for 12 months to go on vacation debt-free. If you only have six months to save, you must save $450 each month. If you have two years to save it will be $112.50 each month to add to your sinking fund.
Recap of The Best Tips On How To Create A Travel Budget
I love to travel and to plan my trips. However, I love budgeting for an anxious-free vacation even more. It is no fun to be on vacation and worrying about how to pay for it when you get home. The best way to stay on budget is to explore budget airlines, budget hotels, and find out about and free entertainment like free tours, museums, parks, etc. You can save on lodging by staying with friends and relatives. You can save on food by accepting free meals from your hotel, family, or friends.
Creating a budget for your trip is good but not too far in advance that the cost to travel increases over time. Some all-inclusive trips will allow you to lock in your accommodations for a small deposit. You must pay in full a few months before you arrive. Finally, if you love to travel having a permanent sinking fund for vacations is a great idea. As you use it replenish it by having the automatic transfers continue throughout the year. Hence, you will always have funds available to travel. Here is a list of things to do when planning your next vacation:
Best Tips On How To Create A Travel Budget
- Research the location.
- Find the best time to travel.
- Google hotels for your destination.
- Research airlines.
- Decide on your form of transportation to get around.
- Look for any hidden fees or added expenses.
- Create your budget.
- Set up a Sinking Fund for your vacation.
- Schedule automatic transfers to this account.
- Set it and forget it until it is time to travel.
- If your credit card offers points use this card to pay for your trip.
- Use the points to purchase a future gift for yourself or help fund your next trip.
This content is for information purposes only. It does not constitute financial advice. If you need personal advice, please consult a financial advisor. I do not endorse any of the companies mentioned. Please research and do your due diligence. I do not get paid if you click any of the links.
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