How To Budget For A Vacation
Knowing how to budget for a vacation is not as hard as it seems. Vacations provide a necessary break from work and can often be enriching experiences. If you don’t plan properly you’ll spend more time worrying about the cost of the trip instead of relaxing and enjoying the experience. Here are some tips to ensure that you not only have the time of your life on your vacation but stay within your budget.
- Set a budget and stick to it. Determine how much you can afford to spend on your vacation. You may dream of taking a two week Mediterranean cruise, but if your budget is $2500, it is not going to happen. You should set a realistic budget based on your income and lifestyle.
- Allocate funds for your vacation. Setting aside money on a weekly or bi-monthly timeframe will ensure that your vacation fund is set. Credit unions also offer vacation club accounts, so if you feel that you need to separate your money from your regular savings account or you will spend it, this may be a nice option.
- Use mileage or reward points. If you have a credit card that issues mileage credit for airline travel or hotel stays, find out how many points you have and use them. This can cut your budget dramatically, allowing a more comfortable vacation with extended options. Airline and lodging are the most expensive categories, so chipping away at this expense will save you a bundle.
- Research your vacation options. After you’ve determined how much money you have to spend on your vacation, decide what type of vacation you are seeking. If you want to go on a Caribbean cruise you will get 50 percent off most bookings in September as opposed to full price during the peak summer months. This can make a dramatic difference in your budget, so if you don’t mind waiting you will surely get your dream vacation at a steal.
Budgeting for a vacation takes planning, but once you have the right plan in place, you can relax and simply enjoy your vacation.