You are planning a long-awaited vacation. How much do you need to save up to enjoy it, but not go overboard?
Define your Expectations
First, decide whether this will be vacation on a shoestring, or whether you are willing to spend at least a little extra. If you are not traveling alone, make sure that you and your travel companions are in sync. Many vacation disagreements are caused by differences in opinion of going first class versus roughing it and how much spending is too much. If there are different approaches, then one side needs to adjust expectations; alternately, the parties may need to agree to disagree, which may mean going as far as reserving rooms in different hotels to accommodate differences in price and services.
Budget the Basics
One of biggest expenses is getting there. If you are flying, in addition to the flight, think about charges for checking luggage, a rental car at your destination, the gas for the rental, and the parking fees that are often charged by hotels. Don't forget about the cost of getting to the airport at home, whether it's parking your car, taking a cab or that dinner you will owe your best friend for driving you at 5 a.m.
The other big-ticket item is a place to stay at your destination. The prices can range from expensive resorts to various levels of hotels and campgrounds. Once you decide on your accommodations, don't forget to budget the meals and resort fees that you may incur.
Often, there are packages available that allow you to combine flights with a car rental and hotel room. Before you assume that a package is the better deal, price the components out separately to have an accurate comparison. Sometimes, the better deal is to combine a hotel with a car, but book the flight separately, especially if you are a member of a frequent flyer program that may give you free upgrades.
Budget the Incidentals
In addition to the big ticket items, there are many smaller expenses, which can add up quickly. Do you want an Internet connection in your hotel room? Are you going to a location, such as a four-star resort, where heavy tipping is expected? Do you collect items such as postcards? Or are you a fan of a local artist and are looking for something higher-end to take home? Are you traveling to a country with a different currency, where you should include the cost of exchanging money as well as consider the exchange rate?
Anticipate the Splurges
Whether it's a luau on Hawaii, box seats for a Broadway show, or the must-see personal tour of Barcelona, do a little research ahead of time if there is something that you have your heart set upon. You may also call the concierge at the hotel ahead of time to find out about availability and pricing; occasionally, you may find a coupon in the hotel magazine to that must-see show, so waiting to book is always an option.
Once you have a realistic budget -- and have not forgotten anything -- add 10%. There will always be something that you didn't plan for, whether it's forgetting your razor or your bathing suit, or that concert that you didn't know about until you arrived in Vienna or Las Vegas.
If you have put aside a part of your budget for these enjoyable extras, you can treat yourself. Within reason.
Decide Up-front How to Handle Temptations
When you arrive at the rental car counter, you will undoubtedly be asked whether you would like to treat yourself to an upgrade, be it a four-wheel drive in the mountains or a convertible in a beach town. Or you may find that one of your favorite bands just happens to be playing in town during your stay and tickets are still available.
Decide up-front how you want to handle such unforeseen, tempting expenses. In the case of the car, you probably already decided when you initially booked that you prefer to spend less. In the case of the concert, you could see this as an opportunity to see the band if they will not be visiting your hometown, or you could get better or cheaper tickets to their concert back home.
The best rule of thumb is to hold off if it is a decision that you have already consciously made while booking, such as whether or not to spring for an upgrade. If it is a new opportunity, decide what you will regret more, the extra spend or missing the extra experience.
Enjoy Your Time Off
Once you are on vacation, remember that you have done a thorough job budgeting using these guidelines. Resist the temptation of calculating your expenses every step of the way; it will only prevent you from enjoying the experience into which you just invested those dollars.
The purpose of a vacation is, after all, to relax.
Join the Conversation