Plan a Vacation for your Budget
The weather is warm, school is out, and the sun is shining - summer vacation season is here. Whether you are taking a trip this summer or want to plan one for sometime in the future, we’ve gathered some of our favorite things to keep in mind that help us plan a quality vacation, without ruining our budget.
Have a Plan
When you’re trying to be mindful of spending on your vacation, it’s important that you have a plan ahead of time to keep you on track. This can give you an idea of how much you’ll spend, and help you compare prices ahead of time. You may not be able to do everything you want to - whether you’re limited by money or time - but comparing activities ahead of time can help you prioritize your vacation wants, while keeping an eye on your budget.
Save for your trip overtime
If you decide to travel spontaneously, you may end up running out of money and using more of your savings or credit than you wanted to. To make sure you can plan a memorable trip and keep yourself financially secure, save a little every month for your next trip. Opening an additional share savings account can help you differentiate your vacation savings with the rest of your money, so you don’t use too much. You may not be able to take that trip this summer, but next year can be even more exciting when you have enough in savings to plan the perfect trip! If you have a rewards credit card, such as a Chaffey FCU Visa credit card, you might be able to redeem points for cash back or travel purchases, which can make your vacation even sweeter.
Budget ahead of time
Once you’ve compared all your vacation options, you can build out a vacation itinerary that won’t break your wallet. Identify the costs factored into your trip:
Fixed: Depending on the type of trip you are planning, these will likely include transportation and accommodations while you’re away. Think hotel, air travel, or rental cars.
Discretionary: These will include the additional items you choose on vacation that vary in price. For example, meals and entertainment will likely be a big part of your trip but will vary in price based on location and the items selected. Budgeting for these purchases may be tricky, but understanding the area you are traveling to or looking up popular restaurants and activities beforehand can help you know what to expect. Sites such as TripAdvisor or Expedia can be beneficial in helping you plan these activities or get pricing information in your vacation area. Overestimating these purchases may help provide some extra cushion if you are worried about low funds interrupting your trip.
Trip Emergency Fund: Life happens - You probably won’t plan for someone to get hurt or for a suitcase to get lost during your trip, but bringing some “just-in-case” money can save you during any unexpected events. If it fits in your budget, you can also look into travel insurance that can cover certain unexpected expenses.
Choose budget-friendly options
Going all out for your next vacation may feel great in the moment, but it probably won’t feel too good once it’s over and you realize you’ve over-spent or borrowed more on your credit card than you should have. To help you avoid high credit card bills or having to take extra money out of savings, stick with options that cater to your vacation wants and your budget needs.
Taking in the local culture of your destination area can offer unique experiences without the big price tag. Local markets, shows, or museums can be exciting and less expensive than other alternatives. Depending on where and when you travel, nature walks or sight-seeing on a self-guided tour can be good options. A mix of different types of activities can help you build a trip catered to your budget needs.
Instead of an overly expensive resort, a standard hotel might fit your needs. If you plan to be out of the hotel and traveling all day, it might not make sense to get the most luxurious hotel room, since you’ll only spend limited time there. If you can’t afford the hotel or trip you want now, consider taking an extended weekend getaway now,, and save up to take that dream trip later on.