Financial Tips

How to Save Money : Don’t Take a Vacation From Your Household Budget

Nobody likes to think about a household budget when they’re planning a vacation. On the other hand, who wants to think of their vacation with regret because it put them deeper in debt? With some careful forethought, you can have a guilt-free getaway.

Don’t get locked in. When picking your destination, keep your budget in mind. Never mind the advertising – some cities and attractions are simply more expensive than others, not more enjoyable. Go off-season if you possibly can.

Budget the trip. Once you and your family agree on your destination, start working out the costs: transportation, lodging, food, tickets to attractions and spending money. In 2007, AAA estimated a family of four would pay an average of $269 per day for food and lodging.

Save ahead. This is an easy way to motivate your family to save money. Instead of going out to eat, stay home and research where you can eat out on vacation! Every time you take out your wallet, ask yourself, would I rather spend this now or on the trip? Start a piggy bank just for vacation.

Don’t go last-minute. You can save a lot by planning ahead. Air fares and hotels become more expensive the longer you wait. The other advantage to planning ahead is that you can spread out the cost of the vacation. Set aside whatever you can each month – without abandoning your budget goals – and put it in traveler’s checks.

Remember the gas gauge. If you’re driving, the Internet makes it easier to plan your costs. AAA has the Fuel Cost Calculator (www.fuelcostcalculator.com). If you’re renting, don’t splurge; get an economical model.

Fly wisely. If you're flying, planning ahead is critical. Make your reservations at least a month ahead of time, even more if you want to use frequent flyer miles. Look at the no-frills airlines, and compare airports – you might be surprised at the difference in fares. Pack as lightly as possible to avoid baggage fees.

Be Web-savvy. There are plenty of discount travel sites out there to help you find the best rates for air travel, lodging and rental cars. Hotels can be pricey, even planning ahead, so consider whether an apartment or guesthouse might work. If your lodging includes a full kitchen, you can save money by preparing some meals yourself.

Use credit cards sparingly. It’s better not to charge your vacation. For hotels and rental cars, which prefer a credit card, make sure you’ve planned how to pay off that expense (including as much as 15% extra for local taxes). Before traveling overseas, check with your bank or credit card company about exchange rates and surcharges on foreign purchases.

Still despairing that you can’t take a vacation? Don’t give up, talk to the professional consumer credit counselors at Credit Counselors. They can help you develop a household budget that will make your getaways possible and worry-free.