How to Make a Financial Plan for Your Vacation

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We work often and rarely rest. Therefore, ideally, a vacation should be such that a person not only relaxes but also gains strength for the year ahead. Vacation planning must be approached responsibly so that it is exactly the way you want and does not turn into money thrown to the wind.

Planning A Budget

Many people start their vacation planning by scouring tour operators' websites, rushing between "expensive" and "very expensive" offers, and in the end, come to the conclusion that they can't afford a vacation this year.

You need to start with something else - decide on the amount that you plan to spend on vacation. In particular, you need to answer a few questions for yourself:

  • How do you plan to pay for your vacation (savings or current income)?

  • What is the maximum amount you can afford to spend on a vacation?

  • How will spending items be distributed within this budget (how much will it take for a flight, how much for a hotel, how much for excursions and daily expenses, etc.)?

  • To what extent deviations from your plans are acceptable?

Ideally, vacation expenses should be covered by monthly income. A small "bust" on the budget is acceptable, especially if you have been saving money for some time on purpose.

Choose The Type Of Vacation

Next, you need to decide what kind of rest you prefer - active or passive. And then, based on the allocated budget, decide on more specific options.

First, you can buy a ready-made package tour. In terms of planning, this is the most convenient option since it will cost almost the entire vacation budget, and you will only have to set aside pocket money. Also, a package tour is often quite competitive in price since tour operators have discounts on flights and hotels. And if you try to book the same flight and the same hotel yourself, it will be more expensive.

Secondly, you can travel on your own - for example, go on a car trip, rent an apartment, book excursions, etc. This option is more interesting because it leaves room for maneuver. But you need to carefully take into account all the costs and at the same time it is desirable to have at least 20% of the planned "extra" amount. Practice shows that reality is often more expensive than plans.

And thirdly, you can go on a trip without planning anything, and all issues are already resolved on the spot. In this case, the distribution of expense items is different: when you arrive at the place, you need to set aside money for the return trip and divide the rest by the number of days and not go beyond the amount.

Take A Virtual Trip

Even if your choice falls on an all-inclusive beach holiday, this does not mean at all that you must spend all the time by the pool or on the beach. On the contrary, you may well plan one or two excursions, and it's better to do it at home, virtually getting acquainted with the sights and reading reviews.

Planning is almost a must when organizing a solo trip. Firstly, it is much more interesting to come on an excursion or sightseeing already prepared. Secondly, it is possible to arrange sights geographically, allocating one day for each conditional territory. Thirdly, you can check your plans for the weather. For example, plan walking tours on sunny days and shopping and gatherings with friends on rainy days.

In the end, having made a virtual trip and reading the reviews on the forums, you will have an idea about a variety of little things: in which area to book a hotel and whether it is worth taking breakfast, how public transport works and where to buy a travel card, how to order a taxi and whether it is possible to pay its map, where you can try national cuisine and where to drink the most delicious coffee.

And finally, the plan does not mean at all that it must be strictly followed. It simply facilitates the journey, allows you not to waste time during the trip on finding out the nuances, and saves money because, as a result, you choose the best value for money.

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