Most people get carried away by the excitement of their travels and tend to overspend while on holiday. Eating out at a nice restaurant or buying keepsakes may not seem like much at the time, but in the end it adds up. Sadly, after a holiday most people struggle to get through the rest of the month.
We’re here to help. Setting up a budget for your travel is an ideal way to make sure you can enjoy your holiday without crippling yourself financially for the rest of the month. Here is our ultimate guide to setting up a travel budget:
STEP 1: SET AN EXACT FIGURE
Before buying your tickets or planning your trip, make sure to have an exact figure in mind. Ask yourself “what am I willing to spend on my holiday?”
It’s important not to set a ballpark figure because not having an exact amount is too flexible and leaves room for change. Deciding on a set amount will dictate how much money your entire trip will cost, as well as how you’ll travel.
STEP 2: DO YOUR RESEARCH
Once you’ve set your total budget figure,
you need to do your research and find out how much your tickets and accommodation will cost. We also advise that you find out how much meals and activities will cost you.
Most websites these days will give you a cost estimate, and if they don’t, don’t be afraid to reach out and ask for more information.
STEP 3: BREAK IT ALL DOWN
Now that you have a general idea of how much money you’ll need and how much money you’ll have left over after paying for your tickets and accommodation. We suggest splitting your budget up even further to ensure you don’t over spend on one aspect of your holiday.
We suggest breaking your budget down into the following categories: Meals, Activities, Travel, Emergency money and “Fun” money.
- A meals budget will cover your snacks, food, drinks, restaurant and bar visits.
- Your activities budget will cover your sightseeing, tours, game drives, museum visits etc.
- A travel budget will cover your taxi, bus, train, ferry and aeroplane fairs.
- An emergency money budget is very important. This budget ensures you have enough money to cover any extra costs incurred. For example, if you miss a flight and need to stay an extra night in a hotel, or if you need to pay for overweight baggage.
- A “fun” money budget is the money that is left over after all your other budgets have been set. This money is for buying keepsakes, clothing and other luxuries.
STEP 4: REASSESS AND SHUFFLE
Once you’ve set your budgets, go back and find out how you can bring your costs down. Find out if street food is more cost effective than a sit-down meal at a restaurant and find out the cheapest way to travel. Will taking a bus be cheaper than a taxi? Can you walk to your desired locations?
Setting up a budget isn’t easy, but it will give you one less thing to worry about. Having a plan and a budget may seem very unspontaneous, but it allows you to be more adventurous because you don’t have to worry about running out of money or overspending.