How to Create a Travel Budget

You’ve saved up carefully for your upcoming trip, and you want to have a relaxing and fun vacation without breaking the bank. The good news is that a travel budget will help you do that with ease. There are two main kinds of costs that travels incur: costs you know before leaving, which are fixed costs and ones that will occur once you’re there, which are variable costs. One way to start your travel budget off right is to pick a hotel with great value, like the ones at Booking your hotel room is your first known cost can be entered into your travel budget. You can keep track of your travel funds electronically on a spreadsheet, or in a small notebook. Your travel costs are the next factor. If you are flying or getting a car rental, you can make note of these amounts in your fixed costs.

Variable Costs

Having noted your fixed costs, you can then deduct them from the amount you’ve set aside for the trip. This is the amount you have for spending on your daily, variable costs like food, activities and shopping. Divide this amount between the total numbers of days you are travelling. This gives you an idea of roughly how much money you have for spending per day. Of course, there are days in which you will use more money and days in which you will use less. You can minimize some of the surprises by doing a little bit of pre-trip research about the average cost of a meal, tour prices, or spa packages to give yourself a better idea of what to expect.

Daily Log

Keeping a daily log of your expenses helps you plan your finances on your trip. You can do this by keeping receipts or using your fund tracker. Review these each day to give yourself an idea of how you are doing – it only takes five minutes a day to stay on top of your spending!

Rainy Day Expenses

It is always wise to have a backup plan for rainy days, so set aside some money for emergencies. If you don’t end up needing it, there’s always the last minute shopping on the last day when you review your budget and see that the rainy day fund is still plentiful. Planning goes a long way for your sanity before, during and after the trip, so take a little time to do up a travel budget. 
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About 工作達人

Hi, I'm Stephen Liu! A Taiwanese couchsurfer, backpacker, food lover and postcrosser. My wife and I challenged ourself to visit all the counties and cities in Taiwan! Read more here.

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