How to Create a Budget for Your Dream Summer Vacation

You have an incredible vacation getaway planned in your head. You know where you want to go, the kind of hotel you'd like to stay in or the mountain you want to camp on, and you know just what you'd like to do on vacation. But then reality strikes as you look at your bank account and wonder if you can afford your dream vacation after all. Well, you'll never know unless you figure out your estimated costs. Here's how to create a budget for your dream summer vacation.

Instructions

Difficulty: Easy

1. Villa in Sicily Choose your dream location, if it's not already firmly etched in your mind. So you want to travel to Italy, but which part? Or if you already know it has to be Tuscany, look for a villa with the perfect view. Figure out how much you'll need to spend on accommodations for your dream vacation.
2. Make note of the events or activities you want to attend or participate in while you're on your vacation. Is it a soccer game in Barcelona, or a hike up Mount Everest? Perhaps you'd rather visit all the best beaches on Eleuthera during your stay on the island. Figure out the costs or entrance fees.
3. Find out how much the restaurants and eateries you'll try will cost. This will be an estimate, so figure out a basic range that reflects what you'll likely spend based on meal prices and your eating out plans.
4. Think about transportation to and from your vacation spot and travel during your stay. research ticket prices, mileage and gas costs for road trips, rental cars, ferry fees and any other transportation expenses for this category of your vacation budget.
5. Add in the costs for friends or family that will accompany you if you're paying, unless your dream vacation is going solo or being paid for by another rich relative.
6. Decide on an amount for your shopping budget. For some, this will be next to nothing, but for others, it could cost more than your transportation. Don't forget about gifts for family back home who didn't get to go on your dream vacation.
7. Create a budget based on your research for each of the categories discussed above. Add them up and you'll see the grand total for your dream vacation budget. Now, add about five to 10 percent for "incidentals" or unforeseen expenses. So, if your dream vacation budget comes in at $3,000, add another $150-$300 to be safe.

Tips & Warnings

• Keep track of your dream vacation budget and your savings for your vacation with budget software.
• See link under Resources, below, for free online budget tools and software.