9 Ways to Have a Budget-friendly Vacation

9 Ways to Have a Budget-Friendly Vacation

Nothing dims that post-getaway glow quite like realizing you’ve overspent and capsized your vacation budget. When you don’t have the right financial tools and strategies, even trying to plan a cheap vacation can get expensive fast.

Don’t sweat it. Use these travel budget tips to help you plan affordable vacations and stay on track before, during and after.

Before you go

Do your homework. A little bit of research can save a lot of money. Read up on your destination to get a feel for what you can expect to spend on food, drinks, shopping and entertainment. Online forums and social media groups are an easy way to get real-time advice from fellow travelers. Check price-tracking websites to see when you may get the best deal on airfare. If you have a specific destination in mind, consider visiting during an off-peak season or at the very beginning or end of summer to take advantage of lower prices and fewer crowds.

Pro tip: A road trip may help you keep your budget in check, and you’ll get to spend extra time with your traveling companions. Plus, it gives you a chance to test out these ways to improve gas mileage. You can even download an app that helps you find the cheapest gas prices along the route to help you save even more.

If you’re traveling abroad, make sure you understand the exchange rate and what fees, if any, your credit card companies may charge for currency conversion.

Look for deals. Online coupons and discount sites are great ways to find hidden treasures in your vacation spot and save money in the process. Browse online, such as on your destination’s tourism website, or find a booking app that serves as a travel guide to see where you can find coupons for tours, shopping, food and more. Consider signing up for travel rewards programs or travel credit cards to earn points and discounts on hotels and activities.

Pro tip: Hotel alternatives like vacation rentals, hostels or home exchanges could help to save on lodging costs.

Pack smart. Bring essential items to avoid buying them at your destination. Consider packing snacks to save on food costs. Packing light can also help avoid baggage fees and make travel more convenient.

Once you’ve done your research and collected some coupons, you’ll have a better idea of what you can expect to spend each day. Draft a vacation budget, but leave some room for spontaneous detours and impulse buys.

On vacation

Be a team. Budgeting is easier when everyone is on the same page. Talk to your travel squad about your vacation budget. That way, when everyone indulges in a fancy lunch or shopping spree, no one is upset when dinner is more low-key. There are expense-tracking apps that let you and your traveling companions add various bills and expenses, so you can easily keep track of who owes who at the end of the trip and ensure everyone pays their fair share.

Focus on experiences. Some museums and tourist attractions are absolutely worth the cost of admission. But while on vacation, opt to spend time doing things like tours, classes and activities. The memories and happiness they create will last much longer than a $19 snow globe from a museum gift shop. And instead of paying the fee for one of those hop-on, hop-off bus tours, consider creating an itinerary for yourself. Then, explore public transportation options vs. taxis or rideshares to save even more money. Many cities offer affordable and efficient public transportation systems, and using them can provide a more authentic experience.

Track your spending. Write down every dollar you spend. Don’t make it about guilt; just jot it down and don’t look at it too much. This log will help you identify patterns and get back on track when you return. Using expense tracking apps can make this process easier and more accurate. Some apps are specifically designed for travelers and can help keep track of expenses in multiple currencies.

When you return

Assess your budget. As soon as you get back, look at your bank statement and expense tracking to understand where your money went. Don’t be too hard on yourself if you overspent. Getting a clear picture now will help you figure out how to get back on track faster.

Make a plan. If you racked up expenses on vacation, you may be tempted to ignore that bill or pay it off a little at a time. Don’t! Decide where to reduce spending areas and commit to getting current and staying current on your bills. Setting up automatic payments will help ensure debts are paid off in a timely manner.

Know for next time. Even if your last trip was a budgeting nightmare, swearing off vacations forever isn’t realistic. Keep in mind the lessons you learned this time around, from affordable vacation activities to spending patterns, and let them inform your planning for the next getaway.

Looking for more ways to bounce back? Check out KEYS^® Online for free courses covering a variety of financial topics.

By Taylor Provost, GM Financial

Taylor Provost loves puzzles of any kind, and that includes decoding complex ideas and concepts so she can share them with others in simpler terms. A true word nerd, you’ll often find her solving a crossword puzzle at home when she’s not road-tripping to a national park with her family.