Holiday Budgeting: Stress Comes From Lack of Planning

The most beautiful time of the year has arrived. Our minds wander around the deep blue seas, cool plateaus or the streets of cities waiting to be discovered, right? But those sweet dreams are usually accompanied by that well-known question that acts like a cold shower: “So, what about the holiday budgeting?” The word vacation also means “big expense” for most of us, and even this thought can sometimes leave us speechless. But wait! I have great news for you: You don’t have to spend a fortune to have an unforgettable vacation. It all comes down to proper planning and smart budget management.

We will solve the issue of preparing an affordable vacation budget together! (Learn English speaking first!)

Also, before we get into financial matters, it would be a good idea to get the most up-to-date list of countries where you can travel without a visa. After all, sometimes it is possible to catch affordable international tours.

In this article, we will explain step by step how you can go on that dream vacation without hurting your wallet, not boringly like a financial expert but sincerely like your closest travel buddy. Fasten your seat belts, we are embarking on a journey of planning an economical yet enjoyable holiday!

Start Earning Before You Go: Create a Holiday Fund

The first rule of calculating an economical holiday budget is to start thinking about your holiday budgeting before you set off, or even months before planning your holiday. Instead of looking at “How much money do I have?” a week before your holiday, setting a goal months in advance and creating a savings plan for that goal will both save you from financial stress and make it easier for you to achieve your dreams. Try to see this process not as a burden, but as enjoyable steps you take on the way to your goal.

The first thing you need to do is set a concrete goal for yourself. “I want to go on holiday” is a very general statement. Instead, set a clear goal like “I want to go on holiday in Kaş for 5 days in September and I need approximately 20,000 USD for this.” You can determine this goal by quickly researching the average accommodation, transportation and food and beverage costs of the place you want to go. A clear goal will show you how much and how long you need to save. This is important when it comes to holiday budgeting.

Now it’s time to create a special area for that goal: Create a “Holiday Piggy Bank” for yourself. This can be a physical piggy bank, or ideally, a separate savings account that you can open in your bank account. The purpose of this account is to prevent the money you set aside for your vacation from mixing with your daily expenses. When that money is “invisible,” you are less likely to spend it. This psychological trick is one of the most effective ways to save.

Small Savings and Timing Matters!

• Don’t leave your savings to chance when preparing your holiday budgeting, automate them! Instruct your bank to automatically transfer a certain amount (whether $500 or $2000) from your salary account to your vacation account every month on the day your salary is deposited. This “pay yourself first” principle will fill your piggy bank without you even realizing it. Instead of saying “if there’s money left at the end of the month, I’ll throw it away”, determine where your money is at the beginning of the month.
• In addition to big steps, “micro savings” can make a big difference. Try giving up that expensive coffee you drink every day outside and transferring that money directly to your vacation account. Or put the change in your pocket in a jar every evening. You’ll be amazed at how much money you have accumulated in that jar at the end of the month. Small sacrifices like canceling a subscription you don’t need or taking a break from online shopping for a month will give your vacation fund a boost.
• And here’s the biggest savings secret: Choose wisely when to travel. Instead of the famous “peak season” of July and August when everyone flocks to the city, consider planning your vacation during the “shoulder season” of May, early June, or September. While the weather is still great, you can avoid the crowds and cut airfare and accommodation prices by almost half. This single decision will lighten the biggest part of your holiday budgeting.

Holiday Budgeting: Transportation and Accommodation

The two biggest slices of holiday budgeting, the “big fish,” are usually transportation and accommodation. Making smart choices in these two items can dramatically reduce your total holiday cost. The rule here is simple: Those who do their research, are flexible, and act early win! Last-minute reservations are usually the most brutal for your wallet.

Flight hunting is an art. Searching with flexible dates is your best bet. Flying on weekdays like Tuesdays or Wednesdays is usually much cheaper than Fridays or Sundays. Keep track of prices using comparison sites like Skyscanner and Momondo, and be sure to set up a price alert. You will be notified immediately when ticket prices drop. Also, searching using your browser’s “incognito” mode can prevent the algorithms from raising prices because you have searched before.

Transportation is not just about flying! Consider alternative routes, especially for domestic or neighboring travel. High-speed trains, comfortable bus companies’ night trips (this way you can also get rid of the cost of a night’s accommodation) or getting together with a few friends and renting a car or going with your own vehicle can sometimes be a much more economical and enjoyable option than flying. Make the road itself a part of the holiday. Let’s not forget this when preparing a holiday budgeting.

Renting a House or Room: Outside the City

When it comes to accommodation, go beyond the classic “hotel” concept. Especially for stays longer than 2-3 days, renting a house/room from Airbnb or similar sites is a great option. Having your own kitchen allows you to significantly reduce your food and beverage expenses by preparing breakfast and some dinners at home. It is also an experience of living like a local!

If you are traveling (packing is important!) alone or with friends and love socializing, never ignore hostels. Modern hostels are no longer just bunk beds and shared bathrooms; they are both very economical and offer a great environment to meet new people with their private rooms, shared kitchens, bars and organized events. Break your prejudices and give them a try, you will not regret it. Breaking prejudices is critical when it comes to preparing a holiday budgeting.

Choosing the location is also very critical. Instead of staying in the very touristic center of a city, staying in a neighborhood one or two stops away from the public transportation network can reduce prices incredibly. Before you book a place, make sure to check the public transportation options and the travel time to the city center on Google Maps. This little research can save you hundreds of USD.

Stay in Control on Holiday: Manage Daily Spending

You have made a great plan, bought your ticket cheaply, arranged your accommodation. Everything is perfect. However, the real budget battle is fought when the holiday starts. That “we are on holiday, of course we will spend money” comfort can turn your entire plan upside down. The aim is not to deprive yourself of everything, but to spend your money consciously and wisely so that your holiday pleasure does not turn into financial stress. In this sense, holiday budgeting is an important issue.

Before you even set off, set yourself a daily spending goal. Say, “Today I will spend no more than X USD on food, drinks and activities.” To achieve this goal, you can take that day’s cash with you every morning and leave the card in your room, or you can check how much you have spent during the day with an expense tracking app on your phone. This is a simple psychological limit that prevents your spending from getting out of control.

The golden rule when it comes to eating and drinking: Eat like a local, not like a tourist! Stay away from restaurants in the city’s most popular squares with menus written in five languages. Instead, dive into the back streets and discover the shabby but delicious local restaurants, markets and street food. You will try much more authentic flavors and your wallet will be happy.

Don’t Fall Into the Souvenir Trap!

Speaking of preparing a holiday budgeting, let’s not forget that supermarkets will be your best friends during this process. Especially if there is a kitchen where you are staying, definitely do not eat your breakfast outside. You can go to the market and prepare a wonderful breakfast with local cheeses, fresh breads and fruits. Having a pleasant picnic in the park for lunch or buying your water and snacks from the market on the way to the beach will save you a lot of money on those small but continuous expenses.

Remember that not every activity has to be paid. Discover the beauties that the place you are visiting offers for free. Join free city tours, spend time in public parks and gardens, research the days when museums are free, find the most beautiful hill to watch the sunset. Sometimes the most unforgettable memories are the ones that are made without spending any money.

And the famous souvenir trap… I understand the desire to buy something for all your loved ones on the way home, but this is one of the moments that shakes the holiday budgeting the most. Set a limit for yourself and do not go beyond that limit. Instead of “Made in China” trinkets, choose more meaningful and often less expensive gifts, such as a small spice from the region, a postcard from a local artist, or a specialty coffee from the grocery store.

10 Tips for Holiday Budgeting

As you can see, planning a good holiday budgeting does not mean sacrificing your enjoyment. On the contrary, conscious planning saves you from the financial stress you may experience during your vacation and allows you to enjoy the moment better. Saving in advance, being smart about transportation and accommodation, and not losing control of daily expenses… That’s the formula.

Now let’s list the subject in bullet points and reinforce it.

Here Are 10 Practical Tips for Holiday Budgeting:

1. Set a Clear Goal: Instead of “going on vacation,” set a concrete goal like “$X for 5 days in Florida in September.” This makes your savings process more meaningful and achievable.
2. Automate Your Savings: Instruct your bank to automatically transfer a certain amount to a separate “vacation account” on the day your salary is deposited. It should be set aside “in the beginning,” not “if there’s money left.”
3. Use the “Mid-Season” Magic: Instead of the most expensive periods like July-August, choose mid-seasons like May-June or September-October when the weather is still nice but prices are more affordable. This single decision can ease your budget by half.
4. Be Flexible and Set a Price Alert: When searching for a flight ticket, being flexible with the dates and setting a price alert on sites like Skyscanner will help you catch the best ticket. Weekday flights are usually cheaper.
5. Think Beyond Hotels: Especially for stays longer than a few days, renting a house/apartment with a kitchen (Airbnb etc.) or budget-friendly modern hostels are much more economical alternatives than hotels.
6. Set a Daily Spending Limit: Before you go on vacation, set a daily budget for food, drinks and activities. Try to stay within that limit every day to avoid a nasty surprise at the end of your vacation.
7. Eat Like a Local, Not Like a Tourist: Instead of expensive restaurants in touristic squares, explore the small shops and local markets in the back streets. They are both tastier and much cheaper! It is important for holiday budgeting.
8. The Supermarket is Your Best Friend: You can significantly reduce your food and beverage expenses by buying your breakfast, drinks and snacks from the supermarket. A picnic in the park can be more enjoyable than the most luxurious restaurant.
9. Research Free Activities: Every city has free parks, breathtaking hills, public beaches or free museum days. You don’t have to spend money on every activity.
10. Plan Your Cash and Card Usage: If you are going abroad, research the best exchange rate and avoid exchanging money at the airport. While in the country, using the cash you have determined in advance for daily expenses can prevent you from going over your budget. Cards are important when it comes to holiday budgeting.