Going on vacation should be a relaxing time, but the list of expenses associated with it can create unwelcome stress. To travel with peace of mind, there’s nothing better than careful preparation and regular monitoring of your expenses. In this guide, we explain how to control your vacation budget while still enjoying yourself.

Take stock before leaving

The best way to track your travel expenses? Get into the habit of tracking your cash flow before you leave, several months beforehand. To do this, you need to understand where your money goes each month.

To begin, analyze your monthly bank statements, including cash inflows and outflows.

If you spend more money than you earn each month, it’s time to learn how to budget;

If you have excess cash left at the end of the month, you can start setting savings goals;

If you don’t have a surplus, it’s time to adjust your spending.

Your trips insured

Categorize your expenses

The easiest way to start is to divide your expenses into two categories: fixed and variable costs:

Knowing how much you spend on variable costs while you’re at home can give you a good idea of ​​how much you can safely spend while you’re away. For example, if you spend €300 per month on groceries at home and you’re going away for two weeks, you’ll have about €150 to spend on meals while you’re away (€300/2 = €150).

However, you’ll probably want to factor in a little extravagance into your travel budget—it’s a vacation after all! Achieving this without overspending requires a little planning and a proper budget.

Create a vacation budget

Before you go on vacation, consider setting a budget and allocating a portion of your monthly savings to future travel expenses. Now that you have a detailed overview of your monthly expenses, it’s time to determine how much you can start saving for your vacation plans.

If you’re not sure where to start, the 50/30/20 rule is a good place to start. It’s a simple method for managing your finances that works like this:

Saving for your trip

Once you know how much you can save each month, you can start planning a vacation that fits your budget. For example, if you can save €500 per month, allocate half of that amount to your travel plans. After six months, you will have saved €1,500. By calculating how much money you can save, you can tailor your trip to your budget. This will allow you to enjoy your vacation while avoiding overspending.

Reduce your travel expenses

If you’re really serious about saving money, you can look at your variable costs to identify areas where you could cut back.

commute to work by bike rather than taking public transport or the car.

There are plenty of creative money-saving ideas out there. Choose a few that work for you and start growing your vacation savings fund!