How to Budget During Vacations

Check on all fees for things like flights and your hotel to avoid unexpected expenses.

Whether your vacation costs a few hundred or thousands of dollars, a budget is essential to avoid running out of money before your vacation is over. Accurate estimates of how much you'll actually need each day of the vacation help allocate funds and keep you on track with your vacation budget. Running out of money during your vacation forces you to either dip into savings or skip some of the activities you had planned to do.

Instructions

1. Total up the amount of money you have available for the vacation. Knowing how much is available enables you to allocate the funds to the various vacation expenses.

2. Calculate the costs for the essential components of the vacation, including the transportation, lodging and food. Research the restaurants in the area you're visiting to get a more accurate estimate of your food costs. Determine if you will eat out for every meal or if your lodging has a refrigerator to allow for savings on food.

3. Ask all service providers about additional fees you may encounter so you aren't surprised when the total cost is higher. At the hotel, ask about Internet use charges, resort fees, charges for additional services and if a free breakfast is offered. Review all of the extra charges for flying, which often includes a fee for each bag and a fee if you want to choose your seat.

4. Map your route if you are driving to your vacation destination. Calculate the amount you'll spend on gas, keeping in mind that gas prices vary by region. Determine if you will drive on any toll roads, and calculate the toll charges to accurately estimate your transportation costs.

5. Plan out the activities you want to do while on vacation and determine their fees. Consider additional fees you may face for extra activities you choose to do at the attraction or souvenirs you purchase.

6. Allocate the vacation funds to each expense. Calculate how much discretionary spending money you have available once the non-negotiable costs like transportation and lodging are subtracted. Divide the remaining money between the number of days of your vacation to estimate how much you have to spend daily.

7. Save your receipts each day so you are able to track your daily spending. Total the amount spent at the end of the day to ensure you are staying within your budget. Adjust spending on subsequent days as necessary by choosing cheaper restaurants or changing your selected activities.

Tips & Warnings

• All-inclusive vacations help control the budget by including lodging, transportation and food in one price. Review all of the fine print to identify any exclusions or limitations so you aren't surprised by unexpected fees. To keep yourself to a strict daily budget, divide the money into envelopes, with one for each day of the trip. When the money is gone in that day's envelope, you're done spending for the day.

References

• Mint Life: Beware of These 10 Vacation Budget Pitfalls; Reyna Gobel; July 2011
• Indiana Secretary of State: Budgeting for a Vacation; March 2010