How to budget for your next vacation

Planning your next holiday getaway? A vacation can be a lot more fun when you’ve got your spending under control, so now may be the right time to put your budgeting plans into motion.

Here are some quick tips to get you started.

Create a dedicated travel fund

If you’ve been planning a travel adventure for years, you’ve probably set some money aside for your travel budget. And if you haven’t started a ‘travel fund’ yet, it’s a good idea to have one.

A great way to get into a savings habit is to set up automated transfers from your main bank account into a designated savings account (the amount and frequency are up to you). This may help you grow your savings faster – almost without you noticing.

Choose your destination

Are you trying to figure out what a realistic budget could look like? One of the first steps to take, of course, is to determine your destination (or let the deals ‘choose’ one for you).

Think about where you’re going and how you’re going to get there. Besides the odd Google search, there are plenty of ways to find inspiration and ideas. And with websites like Kayak and Skyscanner, you can even set up an alert to get notified when the prices move up or down.

Save money with online bookings

Are there any specific attractions that you’d like to see? If so, you may save some money (and skip a potential queue) by purchasing your entry tickets online.

The same often goes for hotels, and that’s where online booking websites like Booking.com and Trivago can come in handy. Who wouldn’t want to sleep on the cool cotton sheets of a four-star hotel bed for a fraction of the price?

Living expenses

Flights, hotel rooms, activity costs… Once you’ve factored these key items into your travel budget, think about food and drinks. How much would dining out cost you?

Of course, living expenses vary significantly depending on the country you visit (and how expensive or cheap your destination is relative to home). It goes without saying, the Internet is a great source of information. Travelex Australia’s ‘Travel Budget Calculator’, for example, may give you a rough idea of how much money you’ll need.

One more step before you go…

Have you ticked all the boxes on your checklist? Before you pack your bags and step on that plane, there’s still one important thing to consider: Travel Insurance.

Don’t forget that overseas medical costs can add up to huge bills quickly. Plus, based on the policy you secure, your Travel Insurance can cover disruptions to your trip as well as luggage theft, loss or damage. As always, the choice depends on your needs, and talking with an adviser may help you find the right fit.
Now, budgeting might not be the most exciting thing to do but remember: by estimating costs upfront, it will be much easier to save up the money you need– ultimately, helping you make your vacation a truly relaxing getaway.

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