TOP FIVE LIVE
How to create a travel budget
After a couple of missed weeks, we are back with our famous Top 5 Lives and excited to share our top 5 tips on how to build a realistic travel budget! When we sit down with our client’s to talk about their budget for an upcoming trip, it is very common for people to not have any idea of what to expect… which makes the planning process even harder for you! Here are a couple tips on how you can find that sweet spot you’re comfortable saving and spending on a vacation:
Know what your discomfort level is with a budget. If it is going to make you cry inside to spend around $20,000 for one trip, that's good to know and a jumping off point for you to work back from. You can also pinpoint this number by doing a little research on flights, hotels in the area, etc. This allows you to also be realistic about what are some minimum numbers you will need to keep in mind. By working backwards and forwards at the same time, you are able to find that sweet little range that is manageable for whatever your financial circumstances are.
Be realistic. Consider if the normal price point that you might use to book a domestic trip apply to the destination in which you are looking to go. For example, a typical room price on the Amalfi Coast is around $350 per night. So always make sure that you are being realistic with your budget and factor in the differences in pricing for various destinations.
Check out what the norm is. A lot of people will see the beautiful views of Croatia, Santorini, and Positano on Instagram or other social media platforms and completely fall head over heels for that experience. However before you get to emotionally attached to one particular spot, head on over to their website to doa quick scan of what an average room price look like. It may make sense, but it may not and that helps you move forward in finding a more reasonable option for your budget.
Consider the number of nights you want to stay. If you find that your total is way out of your desired range, consider trimming some dates off of your itinerary. This allows you to get the experience you are looking for without blowing your budget.
Calculate a savings plan based off of your budget. After doing a little research, take your travel budget and divide that number between the number of months leading up to your trip. This will give you the average amount per month you will need to save in order to hit that number. This makes the amount more reachable because it shifts your focus. So instead of looking at your one lump number as something that is big and scary, you can instead look at it as a bunch of tiny, reachable goals spread out over the months.
Pro Tip: It is always better to be more liberal with you budget rather than conservative. Realistically when you are on vacation you are more likely to make impulse purchases so it is better to plan for that on the front end.
BONUS: Consider the exchange rates in other countries. The conversion rates can play a significant factor into creating your budget. Make sure that when you are doing research to convert whatever costs into US dollars - especially with Euro. This can be a big difference in how much you will need to allocate to your vacation budget!