There are few things more exciting than travel. New places, people, and experiences are what we will remember in our golden years. But planning for a major excursion is essential, especially the finances. This can be a daunting task as there are so many things to factor in. Forgetting something in those plans could end up being a financial disaster and ultimately, a ruined trip. Follow this simple guide on How to plan your budget for a long trip.
Every country and city is different, so always be sure to thoroughly research the costs of everything for the specific destination when doing the budget. Set out the budget into the following three categories and follow the guidelines for each section.
Preparation expenses
This section covers everything that is needed before embarking on the journey. This includes but is not limited to:
*Passports and visas – Absolutely essential and will differ greatly between countries. Be sure to check the visiting requirements for connection flight layovers too. Who knows, we could be seeing more than previously expected.
*Travel insurance – More important than we realize and gives us great peace of mind during the trip. Medical insurance should be a must-have, you never know when you may need it.
*Vaccines – If applicable. Research the areas well and find out what vaccines are suggested.
*Luggage/travel gear – This goes far beyond just bags. What essential travel items will be needed? What activities will be happening? Hiking boots, a camera, scuba gear? These activities need to be taken into consideration.
*Transportation – This should include taxi fees, public transport fares, and flights to get to the destination and back home again.
Actual vacation expenses
This section covers what is needed once arriving at the destination:
*Accommodation – Usually, this is the second greatest expense next to air fares. This crucial bit of planning should always be booked as far in advance as possible. Research the actual dates and rates at the chosen establishment.
*Food and drink – Find out what meals are included with the accommodations and start planning from there. Don’t just think the regular three meals a day, also consider snacks, drinking water, and splurges here and there of some great local cuisine and treats.
*Tours/activities – Make a list of all the activities and tours you would like to participate in and find out their prices before hand.
*Small transportation – Taxi fares, busses, trains, and vehicle hire are all essential to consider. The chances of only walking everywhere are rather slim.
*Spending money – Souvenirs, gifts for those back home, and other little bits and bobs can all add up pretty quickly. Set a per day rate for spending and stick to it.
Emergency funds
A crucial section that is all too often overlooked. What could possibly go wrong? Well, while we certainly hope that nobody ever finds themselves in a sticky situation, the reality is that just about anything could actually go wrong. It is best to take this emergency fund in cash, in case credit cards are stolen or lost. The cash should be well stashed away into three different hiding places. This fund should contain enough money to last at least three days for food and accommodations. It should also be able to cover an emergency flight back home if necessary. What’s even better is that this money is still yours even if it isn’t used.
