A vacation is meant to enjoy yourself, but you can treat yourself without emptying your wallet by creating your vacation budget.
The first step is to develop a budget and plan to stick to it. It should be detailed and complete including airfare to entertainment expenses. Meanwhile, you should decide what’s important to you. It could be buying memorable items during your trip to having great meals at local restaurants. Make sure to budget your trip according to your priorities.
Listed below are some useful tips to stay within your vacation budget.
1. Start Planning Your Budget:
Planning and budgeting is the key to optimal vacation spending. You can spend about 8 percent of the total yearly budget on vacationing or travel. If you really love vacationing, you can increase his portion of your budget by cutting other costs. You should plan your vacation budget based on your destination, your travel costs, and the activities you will do there. For instance, travel cost to some destinations can be cheap, but the accommodation cost can be higher. So if you want to enjoy your trip on a budget, start planning it ahead.
2. Create a Cash Allowance for Each day:
Set a daily budget for meals, drink, activities, or shopping. Make separate envelopes for each day and store your cash in them. Spend only one envelope each day so that you know when you’re daily allocation is depleted (empty envelope), you’re done for the day. This way, you can save your credit cards for emergencies. You may also not develop the same psychological association with spending foreign money. So make sure you don’t spend half of your daily budget on a tip. Use the Western Union mobile app to transfer money to yourself if you run low.
3. Don’t Forget the Hidden Costs:
Don’t forget to include extra expenses in your budget like fees for airline baggage, internet cost, resort fees, tips, and carry on fees, etc. Read the fine print so that you don’t end up overspending when you get to the airport or hotel at your destination. When you add on the extra costs, that sweet discounted deal on airline tickets might not seem so awesome.
4. Eat Like a Local:
Hotel restaurants can be expensive than restaurants in the surrounding area. Look for inexpensive cafes and sandwich shops nearby if you don’t want to spend on a pricy breakfast buffet every morning. Don’t shy away from eating local cuisine. Another inexpensive option is street food. It’s a good idea to experience the local taste and save on your breakfast, lunch, and snacks by eating fresh produce at local markets.
5. Exchange Like a Pro:
To get the best exchange rate, get your money converted when you reach your destination. Withdraw your money at the local ATM once you reach your destination. Foreign banks will charge lower exchange rates as compared to commercial exchange counters. Only exchange the amount of money you plan to spend on your trip based on your budget. Ask your bank about the foreign transaction fee so that you would not be racking up fees at the ATM while you are on vacation. This prevents you from incurring an extra cost every time you swipe your card or withdraw money in a foreign country.
Disclosure: This is a partnered post