How to Budget for a Vacation
Just as you would with any item you're budgeting for, we suggest making a spreadsheet beforehand and doing your research in advance. Some good steps to take include:
1. Set a budget you’re comfortable with.
Decide how much money you’re comfortable spending on your family vacation and start regularly adding to the savings account meant specifically for your vacation. The average amount spent on vacation for a family of four is $6,232. Be cognizant of this when setting your budget and know your limits.
2. Consider off-peak travel times.
To save extra money on airfare and hotels, look at traveling during off-peak times. Different destinations have peak travel dates, so you’ll be able to find a destination that works for you when you want to travel without breaking the bank. Plus, you’ll encounter smaller crowds.
3. Try underrated travel destinations.
Going to a popular tourist destination is going to cost more money, so think outside the box and look for places that are less frequented. This will also give you a more unique and budget-friendly vacation to look back on.
4. Watch for price drops.
On most airline websites, you can create an alert to let you know if the specific trip you’re looking at has a drop in airfare. Booking your trip on a weekend has been shown to save you money, but traveling during the week is cheaper. You'll also want to avoid waiting until the last minute to book your flights, as last-minute travel is always more expensive.
5. Book a package deal.
Many booking sites, like Priceline and Expedia, offer discounts if you book your flight and hotel together. Check different locations and dates to get the best deal on packages.
6. Use rewards and discounts.
If you have travel rewards with a credit card, make sure to utilize those. You can also look for discounts on travel and activities by looking at the local newspaper and websites of the location you plan to visit and seeing if they have any offers available.
7. Create a daily spending limit.
Create a daily spending limit while on vacation. One great way to stay within that limit is to balance eating out versus eating in, or to find less expensive restaurants to dine at if you plan to eat out all the time.
Funding Your Vacation Expenses
Now that you've outlined your budget and determined how to stretch every dollar further, it’s time to look at how to fund your vacation. While you can utilize credit cards for your vacation, we suggest getting a small personal loan to cover your vacation expenses.
Credit cards are best when used for smaller expenses that can be paid off faster, and loans are better for larger expenses that take longer to pay off. If you want to add some cushion to your budget, a loan will be a better option. The other benefits of getting a personal loan are:
If you're considering getting a personal loan to help fund your family vacation and cover your vacation expenses, contact us today. We’ll find the best option for you and set you up to have the best trip possible.