How to budget for travel? It seems like everyone's dream to take off a vacation or two.

As traveling does not only boost the tourism industry, it also enriches one's experience of the unique culture and people for every place he visits.

However, what if you only have limited funds to make your travel dream come true?

Have you ever heard of budget-friendly travel? With a few tweaks on your spending and saving strategies, you can now afford to travel without spending hundreds, if not thousands of dollars.

Plus, you can also make money while you travel! Isn't it fun?

That extra money you can make while in another place can be your fund for your next travel or use as initial savings for your other expenditures.

So, if you want to learn how to travel within a reasonable and free budget, plus save tons of money and make more of it, stay tuned!

Related: How much should I budget for food?

What is a Travel Budget?

A travel budget is a spending plan or strategy for traveling. When you plan to visit someplace, or your family is going on a two or three-day trip, you must make a sound decision and plan how to get there.

You can't just dip into your emergency fund and use it to fund your travel expenses. No!

At the least, you need to have a travel budget to save money towards your travel funds and limit how much you can only spend.

What's the sense out of it if, let's say, you made it to the other side of the world. You experience many memorable things, take in scenic and majestic views, and have something to brag about on your social media.

But when you return home, back to your old life, you were faced with a mountain of debts, unfinished tasks, and crazy nosy people wondering how you can afford to travel.

Traveling should be fun and worthwhile without busting your wallet. And, of course, you can do that!

Who needs a Travel Budget?

Anyone planning to take a long weekend or a whole month trip, but is worried about travel expenses and accompanying costs, should make a travel budget. A travel budget is for cost-conscious and price-aware individuals who can usually travel cheap flights, low-cost accommodation, budget-friendly food, and free tourist attractions.

Most significantly, if you are planning a year-long journey, you need to check in with your budget.

Furthermore, due to the current pandemic travel restrictions, one can think of a safe and unique way to fulfill travel goals- all without hurting the financial side and risking health.

Like any other budget, a travel budget will show you how much you should allocate for a particular trip and how you are keeping with it.

If you wander around without a plan, it won't be long before you run out of money.

With a travel budget at hand, you can control how your money will go and make sound financial decisions from it.

How much should you budget for a trip?

The average cost of a vacation is around $1,200 per person. When you plan a budget for your trip, there are many factors to consider, including personal preferences that may affect budget and price.

For instance, the average travel cost for a single individual would be lesser compared to the average travel cost for a family of four.

Not to mention the choice of destination, accommodations, and food.

If a round-the-world trip is your lifelong dream, now more than ever, traveling around the world is more affordable.

According to Airtreks, the baseline cost for a trip around the world for one person for one year ranges from $20,000 to $30,000. That also means $2,000 cost per month for one person.

However, if you're more like a lowly backpacker, that can be lesser than that. Some can afford to travel all year long for $6,000.

To get a better idea, you could use a vacation or trip cost estimator to give you the approximate amount of travel budget not to exceed your preset travel budget.

How do you plan a budget for a trip?

First of all, release the belief that budgeting for a trip is a pure restriction. Everyone set or allocate a dedicated amount for traveling expenses, including millionaires!

Get at peace with your budgeting mindset first and adopt discipline + commitment to your budget. If you think it's challenging, take a look at your travel budget plan and see which categories you think you can free up.

For example, if you value where you or your family will stay, you might put more money towards finding better hotels or lodging houses. Then, you can cut back on other areas, say, on foods. That is if you want to taste cheap local foods and experience the place more.

Think of it this way: sacrificing comfort to taste local experiences or otherwise. You've got to know which areas of budget travel you value the most, stick with it, and let go of one to make room for another. I hope this makes sense, though.

Your travel budget will only work if you desire to do so and achieve the result you want. Gets?

It's also crucial that you research possible cheap destinations, flights, accommodations, etc. Strategize and plan well. You can start by asking yourself simple questions such as where you want to go and how you will get there.

8 Realistic and Practical Travel Budget Tips That Actually Works

1. Decide which place to go.

It is in your best interest to do informative research about your target place to visit. There are various travel blogs, magazines, books, and many more to help you.

Moreover, believe it or not, there will always be less expensive or luxurious cities than others, so you have to prepare for that.

Decide which place you want to go, do your research part, and see which of these places you can afford.

For instance, from IndieTraveller, Marek shares his blog about the cheapest countries ideal for visiting this 2021. Check it out!

2. Think of how you will get there.

The next best thing to do is plan how you will get to your dream destination.

Will you travel by air, land, or sea? Look for great deals online and see if your credit card points earned enough miles or can be converted to such to cover your flights.

Plus, try to time your travel when most air companies offer bargain deals and promotions. Some offer discounts, free or accessible accommodations, and more.

It is also nice to schedule your travel on weekdays as it is less expensive than when you book during weekends, not to mention other people who will be less likely to travel during weekdays.

3. Accommodations.

After planning your choice of place and how to get there, next is to think about where you will stay.

After all the vibrant adventures of your all day travel, you must find a safe place to rest.

Usually, it's cheaper on the road than staying indoors. Of course, that is if you are a backpacker.

You can cut accommodation costs by staying on AirBnb's, sharing lodgings, and three-star hotels. Watch out for online deals too! If you're using a credit card, see if it has a cashback or hotel points rewards program that you can use.

Aside from that, you can book vacation room rentals in advance so that it's less stressful, especially when there's a surge in booking hotels.

If you can, you can also try to negotiate an overnight stay with the hotel management. But, if you value comfort overall, there will always be cheap and amazingly friendly hotels or hostels to stay in for a while.

Just keep digging that gold! Know that you can save money around hotel costs.

4. Find out the best way to move around.

Now that you strategically plan your travel think about how you will move around once you get there.

So far, carpooling is the best and can save you money. Familiarize yourself with the local transportation and see if it fits your budget. But, if you're a fan of a walkathon, then you can freely move around the area on foot while enjoying every step of the way.

This time, it's best to use credit cards. Apart from the convenience, it may also feel uncomfortable or unsafe if you bring bulky cash. Just remember to don't swipe every now and then. Still, use it in moderation and only buy what you need or want to take as a worthwhile souvenir. (more on this later).

However, if you don't mind bringing in actual cash, check the exchange rate of the country you will visit and see if you can convert your money beforehand or while you are traveling; there are local banks, of course, out there to help you.

5. Foods

Of course, let's not forget about the food! If you're a foodie, you can save money from trying cheap street foods and local eateries.

Don't forget that the place you're staying in may also offer free food! Just make sure to bring your medicine if you're allergic to certain foods to not spoil the fun.

Also, when packing, make it light. You don't need to bring in bulks of baggage or food; you might get charged extra baggage fees. Typically, you don't have to worry about food, because for sure, it's everywhere, you won't get starved!

6. Activities

This is another essential stuff to plan- what will you do once you get there?

From your research, decide which are your preferred “things to do” or local events to attend while you are visiting.

Will you sign up for a surfing session or snorkeling? Or will you join and meet other travelers as well for a group tour? How about bungee jumping or skydiving for a cheap thrill? What's the place best known for?

Try visiting museums or local parks, some are free. Plus, you get to learn about the place's history!

7. Mementos

When purchasing souvenirs, try to find local gift shops, and you'll be surprised by how much you can save. Also, think how much or how many you need and who you will give or gift it to.

Doing that won't put you on an overspending track.

Nowadays, the best souvenirs you can bring are digital pictures and videos. So, that's one thing to save! Ready your cameras and phones? make sure you have enough battery life and a portable internet connection.

8. Contingency Plan

Above all, expect the unexpected. Whatever may happen while you're out and about (knock on wood), you and your family should have a contingency plan.

In case of emergencies, who is the contact person from home? Know at least where are the nearby hospitals or clinical facility so as not to waste time or hassle.

Update your travel insurance and have a travel agent too.

Bonus Tip

How to budget for travel? Try to make money while on it! Did you know that you can also make money while you travel?

Yes! It's not only possible; it's really happening in this day and age! Earn as you travel through affiliate marketing, freelance, or virtual assistant remote work.

With just a laptop and Wi-Fi, you can now work and travel anywhere, anytime you want.

Read more: How To Make Money As A Digital Nomad-Make Money While Travelling.

How do you travel on a low budget?

Essentially, how to save money for travel? If you are a budget-conscious traveler, you can travel even on a low budget. You just have to start now and set aside what you can save for your travel fund.

Plus, there are amazingly cheap places to visit around the world! So, where will your $100 go?

Here are other ways to save money without getting caught off-guard.

Become financially responsible.

If you are serious about traveling and exploring the wonders of the world, the first step is to look at your current financial standing.

Do you have more debts than savings? Well, in that case, it's probably best to settle it down first.

However, if you have enough savings, have to build your emergency fund, and have disposable income, assess whether you can travel this year.

Most significantly, owe your financial situation whatever it is. Above all, money management is a skill.

Track spending.

Keep tabs on where all your money is going! If you have a tracking expense plan, you'll be stunned by how much you're letting money go off!

Think of it as a blueprint of your financial life. From there, you can make better decisions moving forward.

You might as well use an expense tracking app to keep hold of how you're spending and earning money.

Get serious about budgeting.

As I mentioned earlier, if you're serious about your #travelgoals, you better get deadly serious about budgeting too.

Keep a laser-sharp focus on your goal, treat every dollar significantly, and be your own financial advisor/manager/auditor.

Get serious about budgeting, and don't be embarrassed to share that you're in a tight position for now because you're saving up for something absolutely good.

Cut back unnecessary expenses.

In cutting back costs, it's crucial to know precisely and get clear about your needs vs. wants.

As early as now, determine which are your non-negotiables. Find the best bargains and don't forget to compare prices. Try to shop around, save more, cut back, and make more- money, of course!

What else? Ditch cables, cut the landline, quit the gym, stop going out, cook meals, and bring your own lunch. Friendly tip: Don't buy foods when you are hungry because you tend to buy in more and large quantities; your brain tricking you that you need more. Lastly, spend within reason.

Take control of your finances by developing healthy financial habits.

By developing healthy financial habits, you're setting yourself up for success! Healthy financial habits are what the wealthy get right.

For instance, budget. Always have a plan for your money. That's the number one way to get control of your finances.

Your Needs: Who's buying a car without making sure the roof over their head is secure first? Your basic needs take priority over everything else.

Live below your means: This is how you make sure there's money left to build wealth.

Emergency Fund: The pandemic has shown that no one can predict everything. Have some money stashed up for unexpected events.

Pay high-interest debt first: That's the best way to pay your debt faster and cheaper.

Invest in your future: This is how you build wealth exponentially. Start early, start now, no matter how small the amount.

Sell your crap.

And by crap, I mean items no longer sparking joy. Just like what Queen Elsa says, it's time to “let it go.”

If you have unused or old stuff lying around, list it on the marketplace. The money from the sale can add towards your travel fund and other savings!

Make extra money on the side.

Ultimately, your dream is within reach if you know how to play with money.

Aside from tightening your wallet, you can also try to make more money. Ask for a raise on your current job or negotiate your pay. Try to pick up a few part-time jobs or side-hustles to sustain and add money to your travel goals.

Final thoughts

We all love traveling, of course, if we have the money. Who doesn't?

Traveling can be a life-changing experience that can expand your knowledge about the world, people, and places. It's good for the soul. Whether you go soul-searching or explore, try to travel at least once in your life!

My college professors advise us to travel while we are young and include it in our goals.

Well, you can travel for less! Try to include traveling in one of your life goals. You can also use it as a reward to yourself after all the hard work you did for the past months.

Just be aware of varying factors such as preferences and tourist place choices when budgeting for travel.

Therefore, stop dreaming and start planning!

Do you also create budgets before you travel? What are your tips for a financial stress-free trip? We would love to know. Share your ideas, thoughts, and suggestions with us in the comments section down below.