Setting and sticking to a travel budget

Having a fantastic trip doesn’t necessarily require a large amount of money. It is possible to create a budget that works for even the most luxurious holiday destinations. By carefully planning and being well-prepared, you can ensure that you have an enjoyable time without exceeding your financial limits. Here's a guide on how you can create a budget beforehand and successfully adhere to it.

Before you go

Preparing for your trip can be an expense in itself. Beyond booking travel and accommodation, you may need to purchase a new passport, travel case, camera, clothing and backpack, and even get vaccinations. You may also wish to consider travel insurance so that you’re covered for the unexpected on your trip, based on your selected policy. Ensure these are included in your travel budget. Many of these items are great investments for future travel and can serve other purposes as well.

Create a day-to-day budget

Work out what you expect to spend daily and when doing this, consider the type of trip you want to have. There is a difference between staying in a hostel or a five-star hotel. Make sure you establish this well before your travel, so you have a goal to save for.

Use a budget app

There are plenty of free budget apps you can download and use to track your spending while on your trip. Spendee, WeMoney, and Moneytree are great examples. Record everything you buy so you can regularly check to determine how you are spending and whether you need to cut back anywhere.  

Food and beverage expenses

If you are pushing the limit with your budget, one of the best ways to cut back spending is to prepare your meals when you can. If you plan it right, not every meal should need to be eaten out. Most accommodation options include a basic kitchen or access to one. Visit the local supermarket and cook your own meal. Buying drinks can also add up, especially alcohol and coffee. Substitute now and then for instant coffee—often complimentary with most accommodation options—and either cut back on alcohol or purchase it at the supermarket or bottle store as a cheaper option. Keep your own water bottle to fill up rather than buying bottled water (where tap water is safe to drink, of course).

Keep it local

In many destinations throughout the world, keeping your purchases local can not only support small business owners but it can often be a lot cheaper than some of the big multinational retail, transport, and accommodation chains. You can even put your haggling skills to the test and will be supporting the local economy at the same time.

Do you need that souvenir?

Try to curb your spending on knickknacks and souvenirs. Ask yourself if it is something you will enjoy in months to come. Is it something that will come in use to you? Take-home souvenirs tend to sit behind the books on a shelf or at the back of a drawer and they can easily blow your budget.

The highs and lows

Some days you will be spending more than others. Certain activities, excursions, and events can be costly but allow yourself to splurge every so often. This may even help you to keep on budget rather than denying yourself a little expense now and then. The way to balance this out is to ensure you alternate with low-cost ‘rest’ days.

Travel with like-minded people

If you are travelling with or meeting up with others on your trip, ensure they are on a similar budget or make it clear that you are travelling on a budget. Your friends may be on a shorter stay than you and keen to splurge more. Communication is key. Make your intentions clear to avoid any expensive surprises. Lavish nights out can easily blow the budget.

With these points in mind, you can easily set and stick to a travel budget without compromising your holiday. The result may be a sense of pride and satisfaction that you have been careful with your money, yet still had a great trip without coming home with a large hole in your bank account or feeling like you’ve missed out on anything.

National Seniors members receive a 10% discount on travel insurance policies*.

With some cruise cover automatically included, as well as cover for some coronavirus related events, for when things don’t go to plan.