Creating a travel budget can be a fun experience and allow you to see how far your money can go. Don’t stress if you aren’t good at excel, the important thing is you make a plan you can stick to. The key to creating the perfect travel budget lies in where you want to prioritize your money. There are some decisions you can make that will help you maximize your trip, and not bust your budget. We cover some of the main points that can help you save big bucks and keep you on track!
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1. Destination Matters
There are huge differences to cost of a trip for different areas of the world. We have done much of our travel to Europe, which can be one of the more expensive places in the world. We have budgeted anywhere from $250-$350 a day for a two-week trip if we are planning to stay in hotels and take a few larger excursions. In Southeast Asia, the average cost for a day is $35-$80. This is important to research before you begin the rest of your booking.
2. Big Ticket Items
- Plane ticket – of course this is going to be one of the largest costs of your trip. There are a few ways to save money here:
- Be flexible! If you could leave on a Tuesday instead of over a weekend, it will go a long way. Same with your return flight!
- Use online tools to help find the perfect flight such as Skyscanner, Kayak, and Google Flights. Most have options to give a range of dates so you can choose the best price. Kayak is our favorite! It works more like a search engine, so you can focus on getting a ton of information to make informed decisions.
- Don’t dismiss discount airlines – we have found a favorite with Norwegian Air because we figured out what we were willing to give up. Make sure you understand each airlines policy on choosing seats, getting a meal, and bag policies to avoid extra fees. Also, learn about their upgrading policies to see how you could fly first class.
**TIP** We use the “bid to upgrade” option with Norwegian Air and have sat first class twice for a minimal cost!
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- Accommodations– the next most expensive cost will likely be where you stay. Larger cities will be a bit more expensive, but there are always options to keep costs down. When creating your budget, do it on a per night basis and cost average your whole trip.
- Hostels – A great way to save money is at hostels. They have gotten a bad rap over the years but they have come a long way in comfort, safety, and affordability. Amazing sites like Hostel World give you great photos, reviews, and the ability to book with little to no cancellation fees.
- Airbnb – Another favorite among travelers due to the ability to have full kitchens for home cooking and often much more privacy than a busy hostel.
- Hotels – there are some great ways to book hotels that can still be affordable. Mainly, booking directly through the hotel or find a deal on popular sites like booking.com.
**TIP** consider paying the small fee to allow you to cancel or change your dates, just in case your plans change and can be an easy way to stay on your travel budget.
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Travel Budget Template!
- Food – This can be tough to plan for if you are staying in rooms without kitchen spaces. However, finding a hotel or hostel with a free breakfast and doing your best to plan ahead can help avoid crazy food costs. Set a travel budget for each day and do your best to stay inside the guidelines you’ve set for yourself. If you like to drink alcohol (hello great wine!) make sure that’s in your budget.
**TIP** Plan for at least 1 splurge dinner so you don’t feel limited on your trip but stick to your travel budget.
- Travel –
- Between cities – There are multiple ways to travel in between cities such as buses, trains, and even short flights. Planning these in advance can go a long way to saving you money on hiked prices. Sites such as Eurail, Bus Bud, Kayak can offer discounts. Also buying in advance, traveling at off times, and finding flash sales can give you some wiggle room in your budget.
- Local Travel – getting a multi-day pass for a subway or bus within a big city can be a cost saver. Similar to above tips like buying in advance usually can make these even cheaper.
- Car Rental – make sure to book in advance and don’t only look at the airport, you can often find better deals in the surrounding area. Understand the insurance coverage options available and make sure you are covered.
*TIP* Your travel credit card has insurance options on it!
3. Adventures
- Priorities – Would you rather get a nice suite at the hotel or go cliff jumping? Are you the wine tour with a private driver type or take a two-day boat tour? Do you like to bring home authentic pieces? Whatever your perfect vacation is, budgeting for it is important.
- The splurge – we are big fans of splurging during your adventure. Check out our whole blog on it.
- Book your adventures in advance to get the best deals. Most often museums and attractions offer reduced prices at off-times. You can also check out free entertainment such as concerts in a park!
*TIP* Grab a local newspaper to find free events like concerts or free museum days to save big on your travel budget!
4. Insurance, Vaccinations, Visas, etc. for your travel budget
- Travel insurance can be a life saver if your plans change. As usual, it’s often overlooked. Make sure you find the insurance that fits you best for the way you like to travel. We have used a few different ones, check out this great article by The Points Guy.
- Vaccinations might be something you aren’t used to needing to travel. There is a great guideline set up by the Centers for Disease Control (CDC) to help guide you on which vaccinations you need for which countries. Check it out here -> https://www.cdc.gov/vaccines/parents/travel-vaccines.html
- You may need to secure a Visa for the country your planning to visit. There’s an awesome article laying out Visa requirements for 100+ countries.
- **TIP** In 2021, you will need an ETIAS authorization with your Passport to visit EU countries. We plan to cover that fully in a future blog.
- Money Exchanging – don’t forget this one! You can take a hit to your budget in money exchanging alone. You can exchange some money in advance at your bank for a low fee.
**TIP** In 2021, you will need an ETIAS authorization with your Passport to visit EU countries.
We covered a lot here to craft your perfect budget. Ready to get started? Download our FREE Travel Budget guide here! This is a simple tool that you can use to help craft the perfect trip! Have more questions? Reach out to us and we would love to help!
Cheers to chasing our compass!
Mandy & Jackie
