How to Set a Budget for Travel

Anyone who travels knows it requires money. You have to pay for a lot of things relating to your trip. If you have an endless supply of cash, you can pretty much do what you want, when you want. If you are not in this condition, then you should set a budget. This way you can plan for all of your travel-related expenses and be prepared ahead of time. You can accomplish this with a few things.

Difficulty: Moderate

Instructions

1. Use pen and paper or a word processing program to keep track of your budget.

2. Find out how much it will cost to get there. Write down the total cost of traveling to your destination. Make sure you include any extra fees, charges and taxes.

3. Figure an amount for getting around once you arrive, or for the price of gas and other expenses if you are driving. Calculate approximately how much car rentals, bus or taxi services, ferries and any other necessary transportation will cost.

4. Add your accommodation fees. Take account of any deposits, additional charges and taxes. If you will be tipping for maid service, add this in, too.

5. Estimate your cost for meals. Do this for each person, each meal and for the number of travel days needed. Make sure you include some extra for spur-of-the-moment snacks, drinks and tips.

6. Include an attractions, activities, gifts, souvenirs and entertainment expense in your budget. Add up the admission price for any attractions or activity that you plan to do. Include money for shopping too. This is another area where you could add some extra cash for doing something not planned.

7. Go over each section again and make any changes needed. Use a calculator to add up all of the expenses planned in your travel budget. This is the total cost of your trip.

8. Figure out your budget income. Decide how you are going to pay for your trip. If you have the amount of money needed, you are all set and can go and do as planned. If not, you need to make changes to your budget.

9. Find out how much money you are short. Subtract the total amount you have for expenses from the amount you have to spend.

10. Decide what areas of the budget you can alter. Look over your expenses to see which ones can be lowered. Take a little away from each expense, if you need to alter it a lot. Match the amount you have on your budget expenses to the sum you have to spend.

11. Stick to the budget. It is easier to make a budget than it is to actually use one. Make sure you only spend the allotted amounts for each travel expense. If you go over, you could end up short.

Tips & Warnings

• If you are not sure on the exact cost of something you are including in your travel budget, estimate the amount higher. It is better to set your budget expenses higher and have extra money, than to not plan for enough in the first place. Some ways you can lower your travel expenses include booking flights far in advance or taking advantage of special packages. Look for deals that include meals, transportation, attraction discounts and other added benefits. Select a lower priced place to stay, eat meals at cheaper places or plan picnics instead of nights out. Go to fewer attractions or find ones that are free or cost less.
• Include an "Emergency" expense in your travel budget, if possible. This is to cover any additional cost not included already in the travel budget. Use a credit card as a last resort, if you do not have the extra cash needed.