How to Budget for a Trip: Managing Your Travel Expenses

Need a break from the daily grind? Want to check a destination off your bucket list? Or maybe you just want to take full advantage of the stellar weather elsewhere in the country. Whatever the case, a travel vacation is just the ticket.

There’s more to a stress-free jaunt across the country (or an ocean or two) than packing bags and booking flights, though. When you travel, you need to know your budget and make sure you don’t run out of funds in the middle of your fun! We can help – let’s review seven smart travel tips now.

1. Make a travel budget

What’s the best way to make sure you don't spend too much money on vacation? It's surprisingly simple: make a budget, then stick to it! But don't mistake simplicity for ease. When you’re traveling, it can be tempting to “forget” your budget for a little bit to take one more tour, sample one more restaurant, or enjoy one more adventure. Learning how to budget for a trip involves not only the plan itself but staying true to it.

Think about what you can afford and what you can save between now and when your vacation begins. Once you’ve got your travel budget written down or saved on your phone, make sure to stick to it even if it's tempting to break your budget every now and again! Future you will be very grateful when you still have plenty of money left after your fun vacation.

Bonus travel tip – take out a loan for travel

To really make sure you don’t go overboard with your travel spending and enjoy a little extra peace of mind, it might be a wise idea to take out a dedicated travel loan. A short-term travel loan of a few hundred or thousand dollars could be perfect to pay for everything you need to make your vacation a success without making it too easy to spend more than you need.

That’s because your loan is a set amount of money. For example, say you take out a $10,000 loan for a trip to Europe. You buy everything you need with the money from that loan, and when you return home, you pay off the loan in full with the money you saved up previously.

You got to enjoy your vacation, you didn't overspend, and your credit score got a slight boost thanks to your responsible borrowing and repayment. That’s right – with a loan, your vacation can benefit your finances!

Didn’t save quite enough to cover the loan in its entirety when you return? No problem! A travel loan with a low rate may still be a great financial tool. You can make several affordable payments until the loan is paid off, and you might even save money on interest compared to using a credit card for the same purpose.

2. Research your travel expenses ahead of time

Even with a loan, making – and keeping – a vacation budget is a surefire way to manage your money while you're abroad or traveling throughout the States. The best way to do that is:

• Research the average prices of the things you want to do, like ticket fees, restaurant costs, and so on.
• Figure out your non-negotiable costs, like the price of plane tickets or gas for your car.
• Then, add a little “cushion” cash to give you some financial breathing room if you do need to make an unexpected purchase. For most travelers, a few hundred dollars is just fine.

There’s an extra benefit to researching the prices of the things you want to do on vacation beyond just reducing travel spending: you've got a perfect opportunity to scout ahead and find amazing experiences to enjoy once you leave home.

3. Take advantage of travel rewards

If you have a credit card or account with a local credit union, skim its rewards options: there might be bonus perks you can take advantage of. Travel rewards points or cashback offers are everywhere, and they’re great ways to make your vacation even more memorable.

Just be sure to read the terms and conditions! With many travel points and similar benefits, there are strict rules you have to follow to reap the maximum reward. Even with limitations, travel rewards are fantastic tools to help you grow and manage your travel budget for this trip and beyond.

4. Book your flight(s) at the right time

For many travelers, airfare is the single biggest one-time purchase they’ll make for their vacations. Airfare isn’t getting any cheaper, and the longer you wait the more that cost will dip into your travel budget, so you'd be wise to book your flight(s) well ahead of time to snag the best prices.

As a general rule of thumb, flights are the least expensive when you book them between three weeks and two and a half months before your planned departure date. As an example, if you plan to take a summer vacation at the end of August, your best bet to secure a cheap flight is to book your flight in June or July. Traveling for a winter holiday? Book flights in October or November to snag the best prices.

Travel tip – aim for “good enough” tickets

If you’re not sure exactly when you'll be flying, don't sweat it. You should still keep an eye on airfare prices and be ready to spring on "cheap enough" tickets. Don't trap yourself into paying more for your plane tickets than you want by constantly waiting for more affordable prices.

5. Travel during the off-season

Every vacation destination has an on-season and an off-season. The on-season is when most tourists come around, usually because the weather is good, or the local attractions are most accessible. The off-season is the opposite.

But that doesn't mean the off-season is a bad time to visit your dream destination! In fact, the off-season is the best time to travel for many hot spots in the United States and beyond, like:

• Mexico
• Vietnam
• The Virgin Islands

During the off-season, hotels, vacation packages, and other services are often steeply discounted, which can help your travel budget last longer. All in all, this is a great strategy to manage your vacation budget if you know you want to travel but don't yet know exactly where you'll go.

6. Avoid overpriced tours and similar services

Depending on where you want to spend your vacation, you might find yourself surrounded by “tourist traps”: purchases and experiences that are overpriced or designed to part you from your money as quickly as possible. Overpriced tours are prime examples of these subpar offerings that can wipe out your travel budget.

Instead, venture out on your own to explore your destination or rely on the advice of locals to find true hidden gems. These spots might be off the beaten path, but they’re almost always well worth it (both in terms of experience and affordability). This way, you can take in the sights of the area without ratcheting up your travel expenses.

7. Don’t eat out for every meal

Out of everything you'll pay for when traveling away from home, food is likely to be one of your biggest expenses. In some cases, it might even be collectively pricier than your hotel and airfare! While you’re out and about, it's all too easy to get your three daily meals from restaurants and other local dining options. 

The average cost of food for one vacationing person per day is $58 – and that’s not including extra snacks, alcohol, or restaurant tips. Those meals can quickly add up and become a particularly heavy weight for your travel budget. 

Bonus travel tip – make your own food on vacation

To save more of your travel budget for other things, like excursions and unique experiences, stop by local grocery stores and purchase some provisions. Making one or two meals a day, like breakfast and/or lunch, will surely stretch your funds further.

In the end, the goal of your travel adventure is to have a great time. With these travel tips and financial strategies, you can do just that and not have to sweat spending too much by accident.