How to Create a Travel Budget: Smart Planning Tips for Every Trip
Imagine being on your favorite Island and getting a notification from your bank saying you are low on balance or having to constantly check how much you have spent so far, so that you don’t end up negative—not me! And I’m sure you don’t either. Don’t worry! You have me.
In this blog post, I’m going to go over some simple steps you can take to create a travel budget planner.
Here are ten steps you can take to create a travel budget planner that you can use for every trip.
Decide on the max amount
When choosing an amount, be realistic and honest, especially with yourself. Write down everything — and I mean everything — you want to do on a particular trip (doesn’t matter if you do it or not), including places you want to eat, and write down how much each activity and restaurant will cost you.
If you like splurging on trips, choose an amount that feels realistic to you. If you are more economical on trips, then select an amount that works for you.
Even if you are planning to use your credit card (which I strongly recommend), still decide on an amount. Remember, at the end of the day, you still must pay back the credit card balance, and the last thing you want is to be in debt because of a trip.
The goal is to choose an amount that you can spend on your trip without having to withdraw more money.
2. Have an Emergency Fund
Always always always have an emergency fund! I cannot emphasize this enough! An emergency fund is a set amount that is separate from your original budget that you decide on in case of an emergency. Even the most well-planned trips can have their surprises, so having an emergency fund ensures that, in case things don’t go according to plan or something happens during the journey, you are financially covered.
3. Define Travel Dates and Duration
Know precisely what your travel plans are and exactly how long your trip is going to be. Knowing this will help you book hotels and airline tickets and create your overall budget for your trip.
4. Research Hotel Price and Transportation
Know what is important to you when looking at hotels. For me, I need a nice bed, a clean room, and a well-lit midsize bathroom. The room can be amazing, and the hotel can have incredible amenities, but if the bathroom is poorly lit, I won’t book it.
Speaking of hotel amenities, I personally prefer hotels that offer complimentary breakfast, and if I feel like splurging on a particular trip, I’ll choose one with its own restaurant.
When it comes to transportation, choose what is realistic and affordable for you. I have rented cars, and for my most recent trip, I used Uber for the entire trip. I have also used taxis, and they were a little more expensive than Uber.
Research public transportation, such as buses, trains, and subways, as well, and see which one will be more affordable for you. When using public transportation, taxis, or Uber, practice safety. In my blog, Stay Safe While Traveling: A Practical Guide for Solo and Group Travelers, I explain how to stay safe when using public transportation and ride-sharing services like Uber and Lyft.
5. Account for Food and Drinks
When creating your travel budget, do remember to include a portion for food and beverages. Often, your budget depends on the nature of your trip. If you are on an international trip, then it is only right that you indulge in local cuisines.
In my recent trip to San Antonio with my parents, we ate out both nights. There have been times when I have ordered Uber Eats only because I was too lazy to go out again. Usually, for me, $50 is doable for food and drinks on a weekend trip. For a weeklong trip, I’ll usually set aside $250.
Also, if you are someone who likes to enjoy alcoholic drinks, especially on trips, then be sure to account for that in your budget.
Regardless of what you decide, include an amount that is right for you in your budget.
6. Activities and Excursions
Is it even a trip if there isn’t even one activity involved? When planning your trip, consider activities you can do for free or at a lower cost. Maybe you want to tour the city you are visiting, visit the monuments in Egypt, or ride a hot air balloon in Melbourne.
I love visiting museums (art and historical), so I will always include one or two in my budget. If I’m visiting a new city, then I like to do a bus tour. For my San Francisco tour, I took a bus tour that took me all around the city, and I was able to see all the famous landmarks.
Depending on what you like to do or want to do, account for it in your budget.
7. Travel Insurance
Always always get travel insurance, even if you are traveling domestically. When it comes to short trips, weigh your options. If it is going to be a quick, inexpensive trip, it’s best to skip insurance because the trip won't justify the cost. If you do get travel insurance, add it to your budget.
8. Save Money
Even after creating your budget, find ways to save during the trip. There’s a technique that I use when traveling, and it’s balancing. For example, if that day I spend a good amount on a tour or visiting a museum, then I won’t spend much on food and drink. Or I’ll look for activities around $20 or free if that day I am planning to indulge at a good restaurant.
9. Daily Budget
your total budget, allocate how much you will spend each day for the duration of your trip. The best way to do this is to figure out which day you are doing what, meaning which days you have planned for activities and excursions. Include that in your daily budget for that day. Each day will look different, but your daily budget should not exceed your total budget.
10. Track your Expenditure
A good practice is to keep track of your spending daily. At the end of the day, tally up how much you spent that day (include everything, even if it cost you $5) and subtract it from your total budget. This will help you stay on track and avoid overspending. If you notice you spent more than you planned one day, be flexible and cut down on something else the next day.
I hope these ten simple steps help you create your own travel budget planner.
“No matter the destination, let these tips guide your travels and turn them into stories worth telling.”
