Guest Author - Jill Browne

Making a budget for a trip is a matter of trading off between budget categories. The total money you have available for the trip is the whole pie; the slices of the pie are the shares that go to transportation, accommodation, food, and the other categories of spending. You can carve the slices up any way you like, but the size of the total pie stays the same.

The Cash Budget

The simplest way to budget is to start with four main categories: transportation (getting there), accommodation, meals, and activities and experiences while there.

Once you have selected your transportation, take the price of it out of your calculations or it will end up distorting the picture.

Example:

You are taking a 10-day trip to Toledo (Spain or Ohio, you pick!) You found a deal that will get you there for $800. Your total budget for the trip was $2,000 when you started. From now on, it's $1,200.

That works out to $120 per day.

For the $120 you have to pay for what you need, and for what you want. These aren't always the same things.

Sleeping

Biology dictates that we all need to eat every day and sleep every night. At different ages and stages of life we can be comfortable in different kinds of places. The important thing is to be reasonable. Don't cheat yourself of the things your body needs to stay healthy and well during the trip. Otherwise you won't get full value out of your money or your time.

Make decent accommodations – whatever you honestly believe you can get a good sleep at – your first priority. Remember, all you need from your hotel room (or hostel, backpackers, B&B, whatever) is a place to sleep.

Eating

Eat like a local. Buy your food in markets (as long as you are comfortable with the hygiene), local cafes and supermarkets. Get the ingredients for sandwiches and salads, and make them yourself. If you have to buy a few kitchen utensils, just do it.

The key to budget eating is to take free food where you find it. If your hotel room includes breakfast, take full advantage. It may not be the best nutritional advice, but on vacation if food is put in front of you, try to eat it. You don't know where your next meal is coming from, literally.

Attractions and Experiences

The reason you made the trip is to enjoy the attractions. Do your homework beforehand if there is something you really want to see. Does it offer any sort of discounts? Is it worthwhile becoming a member, even if you are only visiting twice? Is there a free day, an open evening, anything to save you some money? Do any of the memberships you have at home – the zoo for example – give you privileges at other zoos where you're going?

Don't forget to add in local transportation as part of the Attractions budget. Again, the cheapest is usually to get around like a local and to walk where it's practical.

Fiddling the Categories

Once you've sketched out a day-by-day breakdown of your cash, you should have budgeted for basic food and shelter plus the attractions you have decided are "must-do" things for your trip.

Now look at whether there are funds left over. Maybe you don't have enough to see a Broadway show or take a helicopter ride over the Andes, but you do have a little extra. (I guess we've moved away from Toledo now).

For example, you can budget for a special meal. Part of that expense comes from the basic Food category, and part from the Attractions / Experience category. You buy yourself a Food upgrade for a night using some of your Experience money. Maybe it's a meal in a restaurant, or a bottle of wine on a picnic, whatever makes it a treat for you.

If part of your enjoyment comes from relaxing by a fireplace and reading, then use some of your Experience money to upgrade to a hotel that has a fireplace. Or a waterslide for your kids. Or a beautiful view. This is not Accommodation money, it's an upgrade you are buying as part of your Experience.