Vacations are meant to be relaxing. Whether you’re at the beach, on a cruise or in another country, the point is to get away from the daily stresses of life and enjoy some time to yourself or with friends and family. The last thing you want to worry about is money. And you won’t, as long as you have a plan.
A plan? That’s no fun. Doesn’t that go against the whole point of a vacation? Not at all. The idea is to relax once you’re there. With the right amount of planning beforehand, you’ll be able to do just that, without a care in the world.
Any kind of planning should start months if not years in advance. This all depends on the type of vacation you’re planning and where you’ll be headed.
A standard trip to the beach can most likely be budgeted within the year you’re planning to go. If you go every year, you’ll already have many of the items you’ll need as you’ve already purchased them. The biggest expenses will be food (both in the rental and at a restaurant) as well as incidentals such as; excursions, adult beverages by the pool and purchases at the gift shop.
A trip to France on the other hand would most likely take years of planning. This is not only true due to the monetary aspect of it, but because you’d want to map out what you want to do while you’re there. It’s important to maximize your time as well as your money for a trip abroad.
Regardless of where you’re going or what you’ll be doing, one aspect can come into play more often than not. You’re almost always going to go over budget. No matter how hard you attempt to think of all the things you’ll need to pay for, human spontaneity comes into play here.
Think about it. You’re sitting poolside with your significant other. The weather is perfect. Sun is on your face, the kids are playing in the pool and you’re sipping on a delicious margarita. You don’t want the good times to end. If you budgeted properly, they don’t have to.
There are two very important factors to keep in mind for a successful vacation budget:
- Set aside an amount that you’ll want to spend each day. Keep a tally of that amount at the end of the day so you can see whether you’re on track or not. If you’re on track, great. If not, you can scale back one of the days of your vacation to get you back to the total you set at the beginning.
- Plan on going over budget by at least 20%. If you plan for the worst you can be ready for it when it comes to fruition. It’s not to say this will absolutely happen, but if and when it does, you’ve already planned for it so you won’t care as much. It’s more psychological than anything else. You’re giving yourself a “pass” to have fun and not care. This will allow you to be in the moment and truly relieve yourself of any stress.
Obviously if you can avoid having to implement #2 that would be ideal. This is also a great psychological boost. By not dipping into the 20%, you’ve met your goal or even came in under budget, both of which feel great.
Of course, spending less and being under the budget you set would be the ultimate goal, but this may be putting too much pressure on yourself. This is especially true if you’re not used to sticking within a budget.
The good news is, in either scenario, you’re giving yourself the freedom to have that additional margarita poolside.
Budgeting is important, but let’s keep our priorities straight.
