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Budgeting for Travel



It doesn’t matter if you’re having a big stout holiday to Europe or you’re simply going to Goa for the weekend, you need to have a budget that suits your travel plans. Yes, budgeting for travel might be much more complicated than budgeting your daily expense, but we assure you that it will be worth the effort.

After all, it is better to spare some time and budget your travel, rather than running out of cash mid-way and having to make an embarrassing call to your parents or friends!

Budgeting and planning your finances for a trip is much simpler than it sounds. The smartest way is to break your budget into chunks as below, and plan your money accordingly.

BEFORE YOU LEAVE:

First off all, you need to find out how much you will be spending – how much you’ll need for the whole trip. This includes the accommodation, the travel, the food, the shopping expenses, and the emergency funds – simply everything.

Know how much time you’ll be away for. When you have a rough idea of the time period that you’ll be away for, you’ll be able to work out your daily costs.

If you’re going international, your visa costs, travel insurances and banking charges will also have to be calculated. Invest in good travel gear – such as luggage bags and backpacks that can hold your belongings safely.

Once you’ve figured out how much you need, you need to start working on how much you need to save. Saving for travel can be quite motivational. When you know that the saving efforts are going to grant you a memorable holiday, you will find yourself saving up more willingly than ever.

DURING TRAVEL

While you travel, cash is King.

And the importance of this statement amplifies in case of international travel. Carry your money in more than one form and have them in different places. My mother always told me that while travelling I need to split my cash in three places – the pocket of my jean, my backpack and my big trolley case.

Set aside a liberal stash of money for transportation. Do not be stingy on this especially if you plan on travelling with kids.

Decide how much you are going to spend on entertainment and shopping. Be intelligent when it comes to shopping abroad. Buy souvenir products that are endemic to the region. Going to Egypt and coming back with an iPAD kind of beats the point of making Egypt memorable.

Put aside some money for emergency. Remember that this emergency fund should cover urgent medical expenses, lodging expenses and the cost it takes to get a trip back home. It is best to be prepared for lost tickets or unfortunate accidents.

Finally, we’d like to remind you that the most important part about your travel budget should be the flexibility. You need to leave space for emergencies and for sudden change of plans.


Posted by

Balakarthiga M