How much of your budget should go to travel?

Don't go into debt for your dream trip If you're looking for a simpler way to figure out how much you'll have to spend for vacation annually, a common rule of thumb is 5% to 10% of your net (after taxes and other withholdings) income .

What is the 50 30 20 rule?

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings .

Why do I struggle to stick to a budget?

Make your budget goals realistic Goal setting is ingrained in budgeting, and like anything in life, if your goals are too challenging to achieve, you will struggle to meet them . Therefore, you must set realistic budget goals that you will likely keep throughout the year to keep yourself on course.

Is 5000 enough for a trip?

If managed carefully, a $5,000 budget is more than enough to eat and drink your way across the continent on a 10-day or two-week trip –or perhaps even longer.

What does Dave Ramsey say about traveling?

You want to ensure that your trip is the perfect amount of time so you don't spend more on accommodations than you should . It's important to note that you don't have to spend all your vacation time on your trip. You can take a few days at home or return to work earlier and bank that time off for a future excursion.

How much does a 7 day vacation cost?

The average cost of a one week vacation in the U.S. is $1,991 or $3,982 for a couple . ¹ However, how much you spend on a vacation can vary greatly depending on where and when you travel and what you plan to do when you arrive.

How can you travel but not spend too much money?

Stay off the beaten path. Avoid tourist-heavy locations, as they tend to be overpriced. Instead, visit local shops and attractions . This can help you save money as well as see a different side of your destination.

How much money do you need to constantly travel?

Several popular travel blogs, such as A Little Adrift, Never Ending Footsteps, and Earth Trekkers, all agree that a baseline of $20,000 per person for one year is doable. This averages out to just over $50 per day.

Is $500 enough for a trip?

A $500 travel budget isn't much, but for a mini vacation for the weekends, it's certainly doable . You can opt for experiences that are generally affordable. Examples include playing volleyball on the beach for free, kayaking in the lake, or going on a self-directed walking tour of the city.

Why is budgeting so hard for me?

If you feel like you just have no luck when it comes to sticking to a budget, the problem could lie in a handful of different things. A budget that's too restrictive, doesn't account for your inconsistent cash flow, isn't realistic or just isn't the right method for you can set you up for failure .

Tips to Stick to Your Budget When You Travel

There are a lot of things we all can do to save money for travel . And most of us are pretty good at it. The hard part, however, is sticking to a budget once you are on the road.

Over the past 20+ years, traveling independently has thought me quite a lot of lessons. Each one helped me improve both in setting a budget and planning for the unexpected things on the road.

That’s why, in this article, I’m sharing some tips which help me stick to my budget when I travel.

Set a budget

You cannot stick to a budget unless you have one. Whether you use Google Sheets, Expensify, Evernote or any other software or app, make sure you have access to it all the time to use it. Personally, I still carry a notepad and pen with me when I travel.

Make sure to create categories, such as accommodation, transport, food, entrance to sites and misc. Once you have a total, make sure to work out how much you have to spend per day, on average. And stick to it!

Each time you spend money, write it down somewhere. At the end of the day, make the total and assess the situation. You decide what to do with the leftover money.

Consider the exchange rate

I made a huge mistake back in 2011 when I didn’t consider the exchange rate vs inflation in Budapest. As a result, I ran out of cash several days before the original date to get back home. So I had to exchange the train ticket. Account for that whether you exchange the money at home or pay by card.

Lists are your friends

I always make two lists: what I must visit and what’s free to visit. The latter may, of course, contain items from the first. For example, British Museum in London is both a “must visit” for me and a free place to visit. Win-win!

When you research a destination, make sure to dig for those free walking tours – which are not really free since you do have to leave a tip -, museums that are free to visit, places which can be visited for free and so on.

Personally, I hit the must-visit free places first and then see what I can afford from what’s left.

Allow for an indulgence

Choose a must-visit place and go there even if it’s expensive. Or plan for dinner or lunch at a nice restaurant. Or go to a concert. Whatever you like and feel special doing it, make sure to incorporate it in the budget.

Choose the right souvenirs to bring home

Guilty! I love to get small souvenirs. The key word being “small”. Fridge magnets aren’t super expensive. In fact, you can find them from 1 euro a piece. Postcards cost as little as 50 euro cents. With that said, yes, I brought back home coffee mugs (but they were 1 pound each). I also brought back spices (2 euros for a pack of oregano, yum).

I usually have a 5-10 euros budget for souvenirs. And that includes what I bring for friends/family. And now you know why my family and friends have a huge collection of fridge magnets and spices.

Visit the market

I am a sucker for farmers’ markets all over Europe. So I make sure to visit them to get to know the destination better. Or to buy the spices I bring back home. Or to buy food for my stay in that place.

And speaking of buying food… the local supermarket is your friend. You can save quite a bit of money by eating 2 meals at the accommodation and one out in town, for example. Sure, there are some destinations where you could afford eating out all the time (Greece is one of them), but make sure to do your research.

Not every culture is OK with bargaining

Especially in Central Europe, don’t expect to bargain for everything. You can try your luck at the market, but it’s less likely to work. In Southern and Eastern Europe, it works at the souvenir shops. The more fridge magnets you buy, the cheaper you can get them to cost.

Walk as much as you can

The easiest way to keep your budget in check when you travel is to walk. It may mean that you spent a bit more on accommodation to be close to the sights, but, overall, it usually ends up cheaper than using public transportation.

Needless to say, my fitness band (FitBit) is proof that I rack up a lot of steps when I travel because I try to walk (almost) everywhere.

Use public transportation

If you have to cover longer distances, for example when you go the airport, opt for public transportation instead of a taxi. This also means to check the flight times and see if you can find flights during the operation hours of the transportation.

In many cases, getting a 24 or 48 hours transport card is a very good idea when you plan a day or two of visiting sights located far apart. Group cards offer even better value for money.

Free walking tours

..which aren’t really “free” is tipping is “recommended”. But between a private tour which could easily cost 100 euros and a 5-10 euros tip, guess what I would go for? By all means, book that private tour if you wish, just make sure it’s within your budget.

Tips to Stick to Your Budget When You Travel | Looknwalk (2024)