As fun as planning your holiday can be, budgeting can be just as boring. However, it’s time well spent, because once you’ve got your budget under control, it’s easier to avoid overspending and financial disputes once you’re away.
1. Set your financial frames
Decide how much money to spend and involve your fellow travelers so that everyone knows the framework.
2. Learn from past holidays
Once you’re on holiday, you quickly fall into old habits. Start from your previous holidays and make a budget based on what you spent on them.
3. How will the money be spent?
Find out what’s important for you and your fellow travelers to spend money on. It’s a shame if half your budget suddenly goes on a diving trip when you’d rather be eating in nice restaurants.
4. Unforeseen expenses
Set aside 5% of your travel budget for unforeseen expenses such as new clothes, suitcase and passport before the holiday, accommodation for the pet, airport parking fee and transport at the holiday destination such as car rental, public transport, tolls, etc.
5. Take your time to research
Once the plans for the holiday are made, spend time researching the costs. How much will it cost to visit the planned places? Are there extra costs associated with the visit such as parking? Are there specific days when there are guided tours or free admission? If you have restaurant visits planned, find out in advance what a menu costs and the rules on tipping. If you don’t know the place, mobile broadband for traveling from home can save you a lot of money when you can look things up directly on the spot.
6. Take cash
Raise the cash for the trip that you have planned to spend and keep a running tally of how much you have spent. It’s easier to check whether you’re sticking to your budget when you use cash than if you pay by card.
7. Keep the overview
Set aside time each day to take stock of your holiday spending so that you stay within your budget. For example, get up early and do your bookkeeping with pen and paper or keep a record on your computer or mobile.