Successfully mapping out and managing your travel expenses requires a well-thought-out budget, starting with a list of everything you’ll need to spend money on. This will help you make sure you don’t underestimate your expenses and end up going overboard.
Most travelers find budgeting challenging and tedious. However, with the right approach, the process can be simple and will help you come up with an organized strategy to enjoy your trip without accumulating debt.
Travel Insurance
Travel insurance is one of the first expenses one should budget for while planning an international trip. Although far from the most interesting part, it’s essential for planning for any unexpected costs like travel cancellations or medical emergencies.
Comprehensive travel insurance will give you peace of mind by ensuring you’re protected from a wide range of potential issues and emergencies. Make sure to set aside some money for insurance – it will help you avoid far greater costs later down the line.
Flights and Travel
Cost-effectiveness, convenience, and speed make air travel by far the most popular option for long-distance travel, whether it’s for business or pleasure.
Of course, the cost of a flight ticket will vary significantly depending on the airline, route, season, and destination. Try to book your tickets well in advance to snag the best possible fees, and don’t forget to budget for other airport expenses like luggage, taxes, and transfers.
Accommodation
Your accommodation expenses will make up a major portion of your travel budget – there’s no getting around the fact that you need somewhere to sleep!
However, this cost can vary massively depending on your choices and preferences. Luxury hotels and resorts can cost a pretty penny, and they’re a great choice if that’s the type of experience you want for your trip. However, you can also opt for more cost-effective lodging like hostels or Airbnbs if you’d rather splurge elsewhere.
Food and Dining
Plan ahead for how much you’re willing and able to spend on meal expenses while you’re traveling. Naturally, eating when you’re on a trip will cost a bit more than a normal week of dinners at home.
What you spend on food will depend on where you’re traveling, your food preferences, and how often you plan to dine out. Authentic local restaurants will be more affordable options than fine dining experiences, and you may want to balance some more expensive meals with cheaper, lighter options or snacks.
Getting Around
Once you arrive, you’ll also need to manoeuvre around the city! The most affordable way to get around is usually by means of public transport, especially if you plan to move around a lot from day to day.
Do some research into the public transport costs in the cities you’ll be visiting, and use your itinerary to figure out roughly how often and how far you’ll be traveling throughout your trip. This will help you create at least a rough estimation of your transport costs.
Sightseeing and Activities
Another major element of a travel budget is the sightseeing and activities – it’s important that you can afford to make the most of your trip! Historical and cultural sites like monuments, museums, cathedrals, etc., are often included in a trip to a new place. You may also want to visit zoos, aquariums, theme parks, or festivals.
Again, looking at your itinerary and figuring out what you’d like to do on your trip will help you come up with an idea of how much you’ll need to spend. You can also use travel apps to find ways to save.
Currency Exchange and International Fees
Remember that exchanging your currency comes at a cost. Exchange rates will make a huge difference in how much you can realistically spend, and you’ll also need to prepare for fees you may incur when doing an exchange or spending with an international credit card.
Use online currency conversion tools to help you come up with a plan, and contact your bank or credit card provider to find out their rates and fees beforehand.
Souvenirs and Shopping
Bringing back gifts, souvenirs, and memorabilia from your trip is always fun – but these expenses can quickly add up.
Here, it’s important to set yourself a strict limit to avoid going overboard. You should also be aware of import laws and customs regulations where you’re traveling. There may be restrictions or additional fees on certain items you wish to bring home with you.
Emergency Fund
Even with the most careful possible planning, there can still be unexpected expenses that come your way. Unexpected events, emergencies, and even miscalculations can lead to high costs you weren’t prepared for.
This is why budgeting for emergencies and keeping some additional cash on you at all times is a great idea. Here, having good travel insurance will also play an important role. However, in the moment, you may need to be covered!