Holiday Budget Planner

Before you set off on holidays, plan a budget. This will help you to enjoy your holiday without getting into debt. Here’s what you need to consider...

Step one: How much will it cost to get there?

Booking flights should be your first priority, because you need to book early to get the best deals. For more information on tracking down a bargain, check out these tips for getting cheap flights and lesser known tips for getting cheap flights.

Include the cost of any internal flights and transfers.

Step two: Accommodation

Your next step is to set a budget for accommodation. Research the price range of hotels in your destination and consider your priorities. If you’d prefer to spend your time socialising and sightseeing, then consider a budget hotel to save money. If you value relaxation and luxury, then spend a bit more on your hotel.

If you’re travelling in high season, book your hotel well in advance – but if you’ll be visiting off peak then consider waiting to get a last minute bargain.

Step three: Food

Your food budget depends on your lifestyle and destination. If you’re happy to self cater in an apartment or hostel kitchen, you’ll manage on a few dollars a day. But if you’re planning to eat out every night then your food budget could be higher than your accommodation budget.

A compromise between the two is the best way to sample local cuisine without overspending. You might, for example, decide to spend $20 five times a week and $80 twice a week.

Step three: Travel Insurance

With the right provider, your travel insurance shouldn’t be too much of a burden – but it’s still worth factoring it in to your budget.

Step four: Essentials

What are your must-do things on holiday? Maybe it’s a car rental, five nights of clubbing, a day at Disneyland, a tour of Angkor Wat, a scuba diving course or a weekend on safari. It’s your holiday, so make sure you enjoy yourself! Research entrance fees and transport costs.

Step five: Find the hidden costs

There are hidden costs on most holidays. It could be the cost of a visa, airport tax, tips or overpriced airport food on that long stopover. Find the hidden costs and include them in your budget.

Step six: Souvenirs

Gifts are totally optional, but it’s worth making a quick list of the people you’d like to buy for and how much you’ll spend on each. That way you’ll avoid panic buying at the airport. You might also want to set a bit aside to spend on souvenirs for yourself.

Step six: Extras

Add up all your costs so far: this is how much your holiday will cost. Now calculate how much you can afford to spend by considering your income, expenditure and savings. If you’re lucky you’ll have some money left over. Divide this by the number of days you’ll be away – this is the amount of extra pocket money you can spend each day.

Unfortunately for most of us, the total budget might seem out of reach. Before you apply for a loan, check out this advice on saving money for your travels. Take a look back over your budget and see if you can trim any expenses. After all, you don’t need to stay in a five star hotel to have a fantastic time.