Though summer will officially be coming to an end here in just two weeks, Euro Summer planning is just beginning for travel aficionados. If you’re looking to swap bitter southern hemisphere winter in favour of a sunny northern hemisphere getaway, here’s how you can start your vacation budget to turn your dream into a reality.
Decide on what type of trip you’re going to have
Before even bringing money into the equation, it’s important to decide on what kind of trip you’re going to have. Are you going with a partner, friends or family? Will you be slumming it in hostels or will you fork out extra for a swanky hotel?
“When thinking about a Euro Summer trip – and whether travelling solo or with a group of mates – it’s great to plan and think about the type of trip you want to have’”, co-founder of investment platform Sharesies, Brooke Roberts explains to The Weekly.
All these questions will start to shape what your holiday will look like. In turn, you can begin to manage your money expectations when you start mapping out the finite details.
Assess the costs
Now you have a clearer picture of what your trip is going to look like, the next step is to assess the costs. Mapping out what your hotel, car rental and flight are going to cost you will help you know exactly what you’ll need to budget. This will also ensure that your budget doesn’t blow out unexpectedly with hidden costs.
“In terms of actually putting pen to paper, your budget can be as simple as you want,” Brooke says. “Whether it’s the notes app on your phone or a proper excel spreadsheet, it’s important to look at that bigger picture through a budget.”
What’s the best way to budget for a holiday?
There’s a lot of competing information out there on what’s the best way to save for a holiday. From budgeting apps to envelope hacks, there’s thousands of ways to put a holiday contingency together. But according to Brooke, one method is the most successful – a dedicated savings account.
“Through our research, we found that people who name their dedicated savings account after their goal, set a timeframe and set up recurring automatic payments are four times more likely to grow their savings balance,” Brooke explains.
“Making this a habit is a really important part of reaching those financial goals.”
Budget tips for once you’re on your holiday
Budgeting doesn’t stop once you set foot on the plane to your dream holiday. Though it may feel perilous to continue counting dollars and cents on your trip, it can stop your finances from expectedly blowing out.
“Having a daily budget in mind can stop you accidentally overspending and avoiding guilt when you come back from holiday,” Brooke says.
On the flip side, the finance expert says have a spontaneous money contingency is also a handy budgeting tip when travelling.
“Setting aside a bit of money for a ‘spontaneous budget’ is also key, when you’re travelling you live in the moment,” Brooke adds. “Having this money gives you leniency to do something that normally wouldn’t fit in your travel budget.”
