The first step in budgeting for the perfect vacation is to be realistic about yourself, your finances and the experience you’re about to have. The budget should be based on your financial resources and your savings goals. But it also needs to take into account that life is for living. Let’s face it. Economizing at home is one thing. These days, most people can’t afford not to trim costs here and there. But economizing on a vacation can be less than ideal.
Be Realistic With Your Budget
For one thing, you’re going to be faced with a lot of temptations that you aren’t at home. For another thing, you deserve to splurge a little on vacation. The key is balance. You don’t want to face buyer’s remorse when you return home.
The crux is, don’t expect that you’ll be satisfied with a baguette and a hunk of brie while you sit on the banks of the river Seine. That makes a good one-off experience, but you’re going to want to sample the restaurant cuisine wherever you visit. Set reasonable money goals and leave a little room for extravagances.
Book Ahead
You could get much better fares if you book your flight well ahead of time. Look for flights at least six months in advance. If you use Google flights, you can access their calendar, where it shows when the cost of flights goes down or up. The more advance time you give yourself, the more flexible you might be able to be, allowing you to take advantage of low season drops in prices.
Consider All-inclusive Packages
All-inclusive packages can be a great way to budget for a luxurious vacation. These packages often include accommodations, meals, drinks, and activities; all for one fixed price. If you’re going to a large enough resort, you may not even miss not trying to find restaurants yourself, off the property. Of course, all-inclusive packages aren’t for everyone, but depending upon your idea of the perfect vacation, it could be a smart option for you and your family.
Use a Travel Agent
Remember the days when you almost had to use a travel agent to go anywhere? Travel agents still exist, it’s just that they have a lower profile than in years past. And, little known to many, it’s often more cost effective to book through a travel agent than to do everything yourself. The reason is that travel agents still have the inside track on special deals and packages. And, they get discounted rates from the transportation industry, which they can then pass along to their customers.
There are other benefits of using a travel agent, too. Your vacation from chores can start immediately, because the travel agent does all the heavy lifting. Instead of you spending hours and hours in front of a computer screen trying to save money, the travel agent is doing all that work. Plus, you might find that, with the help of a travel agent, you can afford extras, like a personal guide, or extra paid activities during your vacation.
Use Credit Card Rewards
Credit card reward programs can make a huge dent in your vacation expenses. Look for credit cards that offer airline, hotel and restaurant points for every dollar you spend. It can take a while to accrue sufficient points to really make a difference, so start now if you want to vacation in the upcoming year. The Only thing you want to avoid is spending unnecessarily just to accrue travel points. The amount you spend on credit cards plus interest can offset any potential savings. A better strategy is to use a credit card to pay bills you’re already prepared to pay for, then immediately pay down the card from your checking account.
Choose Off-the-beaten Path Locations
Tourist hot spots almost always have jacked up prices. But there are savings to be had if you’re willing to go to nearby locales that will still give you the same or similar experience. For instance, Maui is considered quite pricey. But you can split your vacation between Maui and Honolulu and still experience Hawaii. Another example is Mexico. If you stay at a Cancun resort in the hotel zone, you’ll pay more for everything, including food and transportation. But if you stay just 45 minutes south in Playa del Carmen, you’ll have access to beautiful Mexican beaches without paying the top dollar prices of Cancun.
Shop Smart
Of course you’ll want to bring back souvenirs from your vacation. But you’ll have more to spend if you shop smart. Do your big shopping trips away from touristy areas. Also, consider alternative-type souvenirs that will carry more meaning instead of mass-made souvenirs that probably weren’t even made in the country you’re visiting. Ask local taxi drivers and the hotel concierge where the local markets are. There, it’s likely you can choose from beautiful handmade goods by local artisans. Not only will you save yourself from tourist traps, but you’ll bring home something special and support the local artisans, as well.
Set Priorities
Remember, budgeting for the perfect vacation may mean that you have to make compromises. In the weeks and months leading up to your dream vacation, carefully consider all your discretionary spending. Would you rather splurge on a pizza to be eaten on your couch at home, or would you rather enjoy a handmade pizza with your loved one in an Italian bistro? Put as much extra money aside as possible toward your upcoming trip so you can worry less about spending money while abroad and spend more time enjoying your experience.
Remember, life is meant to be enjoyed. When you budget right, you can have your cake and eat it, too. If you’d like more savings tips, talk to your CPA. They might just have more ideas about making your money work for you so you can take even more luxury vacations in the future!