I have to mention the importance of proper financial management and having a good budget for travel.
A worry-free financial future is more important than a vacation, so please do not go into debt to travel! It is important that you have a budget, save appropriately, and travel within your means. Assuming no debt, fully fund a Roth IRA and any portion of a matching employer’s retirement account before you fund a travel account! The time value of money is crucial for you to have enough money to retire. The younger you start saving for retirement, the less you have to save of your own money, and the more you can travel! I could go on and on about finances, but that’s not what this blog is about.
Prices for hotels and airlines change constantly, and depend on your departure city too. I originally was sharing some expenses so that you could get an idea of how much a vacation might cost, but with recent inflation, and so many variables to the cost, my latest post updates won’t include most prices. It’s hard to know what the “normal” rate really is for airfare and hotels. Get a feel for the current rates by checking price calendars for airfare and hotels, to determine when they are inflated for peak travel season or dates, and the standard rates.
Here’s how I budget for vacations:
1) Use a spreadsheet for a family budget (you can download the template for free from Google Sheets, Apple Numbers, or Microsoft Excel). One of the categories to include is vacations. Remember to update your budget every time your income/expenses change, or annually. Depending on the monthly travel budget, determine how much money you can spend on your next vacation. (For example: If you budget $200/month for vacations, but you want to go on a $2,000 trip, you need to wait for 10 months and save that $200/month before you travel. Do not travel before all of the money has been earned and set aside. It is a waste of money to pay interest rates in order to borrow money before you’ve actually earned it. That’s the same as giving away free money!)
2) Use another spreadsheet to create estimated budgets for places we’d like to travel. I start comparing airfares and hotel prices so I have an idea as to how much each trip will cost. This also makes it easier when we’re ready to book a vacation because I know what the average price should be and how much we can expect to spend.
Example: These were 2015 prices!
Taipei, Taiwan
Airfare – (Peach Air often had airfare as low as $120.) TransAsia: $300/person = $600
Hotel – Beauty Hotels Taipei Hsuanmei: $79/night = $238
Taxis/Metro: $65
Food: $100
Activities: $100
Purchases: $100
Airport Parking: $7.50/day = $30
Kennel: $12/night = $36
Actual Total Cost: $1,072
Use these categories for each city, and add any other categories that may pertain to you! Ex: Day care, excursions, or cruise.
If you have questions about finances, the military offers free financial counseling through the on-base family resource centers like MCCS, or Navy-Marine Corps Relief Society also offers free financial classes and one-on-one sessions for military members.
Vacations don’t have to be expensive to be fun! Do what works for you and your budget!