If you’ve been daydreaming about hitting the road or taking off to the nearest beach, trust us, you’re not alone! A vacation can give you the time to unwind that you’ve desperately needed, especially after tax season, but it can also put quite the ‘ding’ on your finances if you don’t anticipate what your expenses are going to be. Planning budget-friendly travel doesn’t have to be tough, however!
Let’s talk about four ways that you go on that dream vacation without breaking the bank. Your mind, body, and pocketbook will thank you!
1. Prepare Your Vacation Budget in Advance
Surprise, surprise… it’s that ‘budget’ word again! We may sound like a broken record but that’s because creating a financial plan is incredibly important. A budget is not just a recommendation – for us, we consider it to be an essential! Especially when it comes to planning for budget-friendly travel.
Creating and having a planned travel budget allows you to see all your expenses laid out in one place and gives you the option to trim expenses where you need too. It will also help to prevent you from overspending which is incredibly easy to do on vacation (especially after a few mimosas).
In your budget, make sure to account for exchange rates if you are travelling abroad. You should always have some of the local currency on hand, as well as additional methods of payment such as a credit or debit card.
You should also make sure that you have a liberal emergency fund in place just in case the unexpected happens (such getting a flat tire or needing to make a last minute purchase).
2. Use Points and/or Travel Rewards to be Extra Budget-Friendly
Are you part of a travel program? If you’re not, and you’re someone who travels frequently (whether it’s for business or pleasure) then you might be missing out.
Travel rewards points, through programs like AIR MILES, can be redeemed for all kinds of perks such as discounts on gas at the pump, seat upgrades, premium services, or ticket purchases!
Other types of points, such as those affiliated with your credit card or debit card, can also be redeemed for similar perks depending on who you’re banking with. For example, RBC has an Avian Rewards credit card that not only gives you points towards future trips with every purchase that you make but also provides travel insurance when you book with them.
It’s worth checking in with your bank to see if your current card(s) offer you any kind of travel advantages/discounts or if your points can be applied towards redeeming any trips or excursions. Every little bit helps make your trip more budget-friendly!
3. Travel Outside of Peak Season for Better savings
If you want to go somewhere amazing and aren’t tied to a specific date, flying outside of popular times (such as the holidays) can save you a bundle.
Tickets and accommodations are often discounted outside of the busy season which may either save you money altogether or give you additional funds to delegate elsewhere (like towards excursions, dining experiences, etc).
It’s also worth cross referencing where you’re going with the current exchange rates to ensure you can balance out travel costs with living costs. For example, flights to India may be expensive but accommodation and meals can be obtained for as little as $4.00 per day. On the flip side, a destination that has cheaper flying costs may have higher food and rental costs when you arrive.
Remember: timing matters for the budget conscious traveler!
4. Utilize Technology and Discounts to Find Deals on Trips
Maybe it goes without saying but we’re going to say it anyways – there really is an app for everything these days! Not only are apps easy to access but they can also save you money when it comes to booking your trips, sorting out accommodations, and booking fun activities.
A lot of locations have ride-sharing services available, such as Uber and Lyft, which can cut down on the cost of travel depending on where you go.
Apps like Groupon and AirBnb, where you can purchase excursions, accommodations, and services at discounted prices, are also a great way to save money without sacrificing the amazing experience.
If you’re not into the app-life, we recommend tapping into a tried-and-true piece of technology that has stood the test of time: your phone! Call your hotel or host to get their recommendations and see if they can offer you some budget-friendly travel activities and pricing. Utilizing a travel agency, such as Heidiway Travel, is also a lever to pull if you’re looking to customize your experience without any hidden costs.
Also, if you’re a student, military member, or a senior, speak up! Many places offer discounts if you fall into one of these categories. Just make sure to bring appropriate identification with you.
Questions? IAPC Has You Covered!
Whether you’re looking for ways to optimize your budget for that dream vacation or are interested in support when it comes to investing in your future, we can help.
Book a free consultation with one of our trusted Chestermere Chartered Professional Accountants today. We’ll be happy to go over your options with you and answer any questions that you may have about your financial and accounting needs!
