Prevent Overspending with Vacation Budgeting

Vacation budgeting is important to prevent overspending. Vacations can be affordable, but all costs must be planned and accounted for before you travel. You must think about food, transportation, unexpected disasters like lost luggage and all recreation must be budgeted. Looking at just the cost of the trip and airfare is a false sense of affordability. With a little planning, you can take affordable trips with your family.


Consider setting up a savings account just for vacation. Everyone deserves a vacation every once in a while. Add a savings account to your existing bank account, and set up automated deposits weekly or monthly. Then once you have saved up for the trip, you can take it without accumulating credit card debt.

Buy Trip Insurance

Trip insurance can be a good safety net to prevent major financial loss. Buy through an independent insurance company, not through the company you are purchasing the trip through. This will be a better deal. Trip insurance can cover lost baggage, canceled trips due to medical problems, natural disasters, and it can cover medical expenses that your health insurance won't cover overseas.

Plan for Every Detail

You must make a list and account for every possible expenditure. Think about food and entertainment, transportation, fees involved with leaving foreign countries, passport fees and other miscellaneous fees that would be applied to your trip. You must be realistic an understand how much the trip will cost.

Get a Discount

Discounts can be found for hotels, airfare and car rentals. Use your AAA membership to receive great hotel discounts. Military and government employees also can see rewards at hotels and rental car sites. Bundle your hotel and flight together on a travel website to see higher savings.

Go All Inclusive

All inclusive resorts and cruises can be a good option for those who want to stick to a certain price for the entire trip. Food is included, which can be a big expense. just be careful of alcoholic drinks and sodas, which usually are a hefty additional fee. These resorts and cruises offer tons of entertainment which will keep that portion of your budget low. And some cruises may leave from a port near your hometown, cutting out flight costs.

Stay on Budget

It can be difficult to stick with a budget on vacation, since you feel you deserve it. But you don't want your week of fun to create months or years of credit card payments. Pay for your trip in cash by saving before you go. Try using a prepaid credit card for expenses incurred while on your trip. Travelers checks are also a good choice. This way you have a certain amount of cash to spend, and when its gone, you stop spending. Taking your credit card with you can cause unnecessary splurges.

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