Travelling anywhere in the world can be costly. And with the rising costs of goods, you may even be thinking of putting a pause on any future travel plans. However, there are some steps you can take to help better prepare yourself financially for a vacation. Check out the tips below to help you get started.
How to make a travel budget that sticks
Creating a budget from scratch can be challenging. And at times, sticking to it can be even harder. So, in order to help you create an effective budget for travel, we've outlined travel budget tips to consider in your budget making process.
Consider the 5 W's — who, what, when, where, why?
Ask yourself who are you planning to travel with? If you're planning on travelling with family, you'll want to factor costs for all members you'll be paying for (i.e., children). Or, if you're travelling with friends, you'll want to factor all costs, some of which may be split between you and your friends.
Consider what you plan on doing during your trip. From rental cars to excursions, you'll need to factor in the costs for the activities you want to do, the hidden gems you want to see and the souvenirs you may want to buy.
Factor in when you plan on taking vacation. Some travel destinations offer cheaper travel during the winter months versus the summer months, or vice versa. It pays to do some research on when the most affordable time of year is.
Think about where you want to travel to. Some vacations offer all-inclusive packages which can help you establish a set amount of money you need to save for. While some other vacation hot spots require more planning and budgeting. You'll also need to consider how long you plan on being there, as that will also affect how much money you need to set aside.
Lastly, you'll want to consider why you're going on this trip. For example, if it's an anniversary trip, you may feel inclined to spend more on luxurious accommodations. Whereas if you were doing a solo trip for fun, you may not feel the need to spend extra on luxury hotels. The reason for your travels may require more saving, so be mindful of your why.
Consider your income vs. spending
Review your current spending habits against your income. Using tools like TD MySpend can help you track your monthly spending and provide insights on how you can save more to help you potentially reach your travel goals faster.
By factoring in the 5 W's and how much you spend versus how much you make, you can start setting realistic goals on how much money you can afford to set aside. Seeing your money start to add up in a designated savings account can help keep you motivated to continue saving.
How to save money on travel
Now that you know how to budget for your trip, you may be wondering about ways you can save money on your actual vacation. Here's how you can make every dollar count:
- Leverage travel rewards points on your travel credit cards
If you're someone who is using one of our TD Travel Credit Cards you to earn travel reward points on everyday purchases. Points can then be redeemed for flights, hotels, and other travel related expenses.
- Search for deals
From last minute vacation packages to booking group vacations, there's multiple ways you can save on your travels. There are also tons of travel sites that can notify you of exclusive deals and promotions which can help ensure you're always getting the best prices. But be wary of potential vacation scams. Shop only from trustworthy travel sites or directly through your credit card's redemption website if redeeming your travel points.
- Save on expenses when you get to your destination
Do your research prior to your trip and check the cost for excursions and other activities you're interested in doing. There may be other companies offering the same experience that are more budget friendly. By doing your research, not only will you be better prepared on how much you should save for the excursion, but you'll also know which company offers the best bang for your buck.
Looking for more ways to make your dream vacation a reality? Speak to a TD advisor to discuss how we could help you save for your next vacation.