Vacation Planning Tips
Financing a vacation comes in two parts. The first step is to plan your vacation and set a travel budget for all your expenses before you arrive. Following these budget travel tips can help you avoid credit card debt. Even if you use a credit card to pay for certain expenses, such as plane tickets or the reservation for a hotel room, you want to have funds available to pay off the charges quickly.
#1: Set up a vacation savings account
Setting aside money in an account that’s separate from your primary checking account will keep you from using money needed for essentials like rent, food, and bills. It’s a good idea to start now, regardless of whether you have an upcoming trip or not (you’ll end up going on a trip eventually, right?).
How you fund your vacation fund is up to you. If you have a specific amount you need to save, setting up automatic deposits is the most reliable way to build your vacation savings. If you don’t have an upcoming trip to save for, contributing extra cash now and then can help you get started without straining your budget.
#3: Avoid travel during peak times
The time of year of your travels, as well as the specific day of the week, can make a big difference on your wallet. Summer is one of the most popular times for travel in the U.S. with school being out for summer vacation. Airlines and hotels know this and so summer travel tends to be more expensive. Traveling around the holidays (any holiday), can also cause costs to be pricey.
When it comes to picking flights, choose ones during the week which are less popular. Tuesday is known for being the cheapest day to fly whereas Friday, Saturday, and Sunday are the most popular, and therefore also tend to be the most expensive. Similarly, hotels and other accommodations are going to be more crowded on weekends. Booking a trip for Monday-Friday may be more cost-effective
#4: Study your destination
Most cities offer coupon books to travelers for discounts on food, entertainment, and events. You can also find free local events, such as festivals, through community calendars. If you use apps like Living Social or Groupon, simply switch your location to search for discounts and special offers. This will help you plan activities that won’t cost you an arm and a leg.
#5: Minimize your food expenses
After travel and accommodations, food is usually the next biggest vacation expense. Use these tips to avoid overspending that usually winds up on credit cards:
- Hotel vending machines and minibars are notoriously expensive! Skip them and get snacks and drinks at a nearby convenience store instead.
- Avoid ordering room service
- Pack food for the trip instead of having to buy food once you’re en route or at the airport
- Avoid tourist-trap restaurants. Ask where the locals eat, since it will usually be less pricey.
#6: Figure out how you’ll get around
Is your destination walkable or is some sort of vehicle required? Have at least a general idea of what areas you plan on visiting to get an idea of what’s the most cost-effective way of getting around. For instance, if you’re going to be staying in a small radius, a rented bike or scooter or public transit might suffice. Or if you plan on covering more ground, compare the costs of renting a car to that of a taxi or ridesharing service.
Many hotels offer complimentary shuttles that go to nearby popular destinations and many tourist-friendly areas offer free trolleys and other local transport. Do your research ahead of time to determine what public and private transport options are feasible.
If you decide to drive a vehicle—either yours or a rental—use GasBuddy.com to find the cheapest gas in that area.
#7: Find free things to do
Going back to the tip above from pre-planning, change your location on Living Social or Group to find discounts and coupons on local activities. If you’re staying at a hotel, ask the concierge if they have a coupon book for local attractions.
You may also be able to find museums, art galleries, music, and cultural events that are either free or discounted.
#8: Keep currency exchange rates and taxes in mind
If you’re going on an international trip, not knowing exchange rates, local taxes, and tipping practices can cause a lot of expensive headaches. Here are some things to consider:
- Will you be able to use your credit cards where you’re going, or is cash more commonly used?
- Are there ATMs available where you’re going?
- If you’re using a credit card, make sure it’s one that doesn’t charge foreign transaction fees.
- Look online for tipping rules or ask the concierge about customary tipping. Most countries tend to tip less than we do in the U.S.
