10 things you’re forgetting to budget for your vacation
Overlooking these costs can add up
Overlooking these costs can add up
I’ve always stressed the importance of having a vacation budget in place. By having one, you can accurately estimate your costs and start saving for your trip. I find that people who don’t budget for their trips end up spending more than they anticipated.
This might not be an issue if you have the money available, but do you really want to spend more than you wanted to? What if you don’t have the cash ready and end up putting all those extra expenses on credit? That’s an expensive mistake to be making. The following are things you’re forgetting to budget for your next vacation.
When you’re on vacation it’s easy to want to go and see every attraction, but those things add up fast! If you’re travelling as a couple, you could spend $50 – $100 a day on attractions alone. Fortunately, there are a few ways to save. I personally look for free museums or free days. There are also many passes available in major cities that will give you discounted admission for a set price. One popular pass is the CiytPASS which is available in 12 cities in Canada and the U.S.
This really should be a surprise, but many people fail to budget properly for food. It’s so easy to go over budget when you’re eating out practically every meal, but at the same time, you don’t want to cheap out and not be able to afford certain things when you see them. Try to balance restaurants with quick meals so you can still enjoy the local cuisine.
Most credit cards charge 2.5% on top of the spread whenever you make a purchase in a foreign currency. This same charge applies when you withdraw money from an ATM. 2.5% may not sound like a lot, but trust me, these fees add up fast. Fortunately, you can reduce these fees quite a bit, in some cases to zero. Read my guide on the best ways to exchange money for a full breakdown.
Everyone knows by now that airlines fees keep increasing. Depending on where you’re flying to you may need to pay for checked baggage, seat selection, meals, entertainment, and even blankets. Seriously, you could add $50 – $100 to your trip in airline fees alone per person.
When I drove down the Pacific Coast Highway. I couldn’t believe how much I ended up spending on parking. Every time I parked on the street in the city I was paying $2 – 3 an hour. Hotels are the worst, my hotel in L.A. wanted $25 a night. I refused to pay that much so I checked Google street view for nearby parking garages that had more reasonable rates.
Transportation costs really depend on how many places you visit and what you plan on doing. I personally always look up how to use public transportation in the cities I’ll be visiting since cabs are expensive. That being said, Uber has become a good alternative since their rates tend to be very reasonable.
Data has become so important in our lives that it’s hard to imagine travelling without being connected. Many mobile providers offer roaming plans, but they don’t offer the best value. I personally prefer KnowRoaming since you can save up to 85% on voice and data charges in 200+ countries, plus you get free Whatsapp access.
I admit that I enjoy shopping when I travel but it’s really easy to go overboard. These days I try to just buy things that I need regardless of where I am. I do admit that I like to pick up a magnet wherever I travel to. It’s okay to pick some tacky souvenirs now and then.
The cost of medical attention can be incredibly expensive, so you always need to have travel medical insurance whenever you leave the country. Travel insurance isn’t even that expensive. It’ll cost you just a few dollars a day, yet many people don’t even bother because they don’t know any better. Trip cancellation and baggage insurance are optional, but travel medical insurance really is a must.
Not every country requires an entry visa and not all of them are expensive, but they are one of those vacation costs that add up. In many cases, you can get them before you depart so it’s easy to budget for, but sometimes you’ll need to obtain them when you arrive which is an “added” expense to your journey.
It’s unlikely you’ll be paying for all of the above in a single trip, but you can see how they could easily add up to a few hundred dollars if not a thousand dollars pretty quickly. Always budget for your vacations otherwise you might end up scrambling to find the cash to pay off your credit card bill when you return home.
Barry Choi is a personal finance and budget travel expert at @barrychoi. He has been quoted in The Financial Post, The Toronto Star, Business Insider and The Globe and Mail. You can follow him on Twitter:
This article originally appeared on Moneywehave.com
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