How to Avoid Post-Vacation Sticker Shock

Many people who go on vacation do not budget how much they will spend before they go on vacation. Vacationers can avoid post-vacation sticker shock by estimating their expenses ahead of time and budgeting accordingly. Do not wait until the credit card bills start coming to ascertain how much your vacation really cost. Read on to learn more.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Brochures, Internet, Budget

Budgeting for Your Next Vacation

1. Make a vacation budget. Determine how much you have to spend on a vacation and how much you can realistically save before going on the trip. This amount will be your vacation budget-the amount of money you have for travel, lodging and amusement.

2. Hold a family meeting to determine where the family wants to go for vacation. Discuss compromises such as spending less on travel to have more for sightseeing and the attractions.

3. Visit travel web sites such as www.travelocity.com and www.priceline.com to get low rates on airline tickets, hotel rooms and car rentals. Ask travel agents for information on any special packages and seasonal discounts. You can also get travel guides at bookstores and libraries.

4. Create a travel itinerary. Plan your activities before you arrive at your travel destination.

5. Create a credit plan. Credit cards are very practical to have on the road because they are safer than cash and can be replaced if lost. It can also be very easy to overspend on credit cards. If you are going to use your credit cards, carry a notebook with you to record your charges and limit them to budgeted expenses. When you return home, pay those charges in full.

Tips & Warnings

• Start putting money aside every month in a money market bank account or mutual fund to prepare for a vacation.

Resources

• Travelocity
• Priceline