What to consider when you create your budget for travel
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What to consider when you create your budget for travel

You want to create your budget for travel but you are afraid you may miss some things? In this article we will tell you exactly how you should plan your budget and what things you should take into consideration.

Table of Contents

Even if you already have a budget in mind, this article will help you find out if it will cover all your costs. We will also provide you with tips to stay within your budget.

Your transportation budget for travel

One of the major things you should consider when you start creating a budget is the cost of your transportation. Here you should consider all means of transportation, especially if you want to travel on a budget. Sometimes, it may be considerably cheaper to take a bus than a train.

Transportation options:

  • flights
  • busses
  • trains
  • car
  • boats

Tip: rome2rio is a great tool you can use to give you an idea of the available transportation option and prices.

The cost of your transportation to your destination

How do you plan to arrive to your destination? You may have multiple options, such as going by bus, car or train or you may only be able to fly there. You should research all your options in order to find the best balance between price and duration.

We usually use Omio to book our transportation.

Transfer costs

You should also think about your transfers. Is the airport or train station in a different city than your destination? Look at your options in terms of transfers, you may be able to travel by bus, Uber, train or metro. In addition, you may want to consider renting a car for your entire trip.

Tip: usually it is cheaper to travel by public transport or Uber from the airport

Costs of moving around at your destination

Another aspect people forget to consider when creating their budget for travel is the cost of moving around at their destination. For instance, if you plan to visit London, the costs of public transportation can be considerably high. In addition, you may want to take a day trip to another place so you should check out the costs of getting there. You can look at car rental, busses, or trains.

Related: How to create your travel itinerary

Your accommodation budget for travel

Another big chunk of your budget will go on accommodation. You should consider all the options you have when you select your accommodation. You can check out booking.com for the best hotel and hostel deals or Airbnb if you want a cozier environment.

Booking.com

Tip 1: you can save on accommodation if you have friends at the destination who will welcome you to stay with them

Tip 2: you can also save on accommodation if you choose to stay in a hostel or a shared room in an Airbnb.

Your food and drink budget for travel

Everyone has to eat, right? Therefore, you should definitely research the costs of food and drinks at your destination. You can check out numbeo for the average costs for food and drinks at your destination.

Tip 1: Sometimes is cheaper to book accommodation that has a kitchenette where you cook make some of your meals.

Tip 2: You can choose accommodation that has breakfast included so that you can save on one meal per day.

Your activities' budget for travel

Activities can be another thing you should consider when you create your budget for travel. Do you plan on taking any activities? You should think about how will you get there and the attraction prices. However, the safest is usually to book organized activities. Check out GetYourGuide.co.uk for activities available at your destination and their prices.

 

Visas budget for travel

Although not all countries require you to have a visa, you should consider checking. Sometimes visas can be quite expensive, so we recommend including them in your budget.

Your insurance budget for travel

The best way to plan for the unexpected is to get travel insurance. This can cover your costs for emergencies such as medical issues, luggage and delays. Check out these best insurers for travel:


Related: The Best travel insurance companies

Your miscellaneous budget for travel

The final thing you should take into consideration when creating your budget for travel is extras. Do you plan to go partying or shopping? Both activities will probably cost you, therefore you should think about how much you want to spend on extras.

Add a 15% margin on top of your budget for travel

We like to prepare for the unexpected when we travel. Therefore, we always include a 15% extra on top of our calculations, just to make sure we are prepared.

Example of a travel budget to Miami, United States

We created a budget example for a 7-day trip from London to Miami for two people, from the 6th to the 12th December 2020. As we are from Romania, we did require visas to enter the United States, therefore we included them in the budget. You can find the details below.

Item

Details

Budget

Return flights to Miami

with TAP Air Portugal

$710

Return transfer costs

with Uber

$48

Moving around budget

with Uber

$100

Accommodation

Hotel Clinton Hotel South Beach

$922

Food and drinks

Considering $15 for an inexpensive meal, 3 meals per day

$630

Activities

Everglades National Park Airboat Tour and Wildlife Show

$50

Visas

the US visa is $160 per person for multiple entries

$320

Travel Insurance

with Safety Wing

$34

Miscellaneous

buy an Apple iPhone SE

$427

SUBTOTAL

total costs for two people for 7 days

$3241

TOTAL

Add a 15% error margin

$3727

Therefore, we would have a budget of $3727 to spend for two people for 7 days in Miami, everything included. This means $1864 per person for the entire stay.

Conclusion

Creating a budget for your travels will definitely help you enjoy a worry-free vacation. How do you create your budget for travel? We would love to know.

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