8 Tips to vacation on a budget

Chances are, you deserve a vacation. Perhaps it's been too long since you lounged on a sunlit beach, explored a foreign city or simply went wandering a few towns over. Maybe this is your very first time planning a vacation for you or your family. Either way, the reality is that while vacations are about making memories, they cost money. Whether you’re planning a worldwide escapade or just a quick break, learning how to vacation on a budget may help you make memories without depleting your bank account. Let’s look at some tips that might help you learn how to maximize your money and get more out of your next vacation.

1. Start with a vacation budget

Inexpensive vacation ideas start with a clear vacation budget. Setting your budget early lets you align destinations, activities and accommodations with what you’re comfortable spending. This may help you maximize the value for every dollar you spend. For the budget-savvy traveler, successful vacations on a budget often revolve around a few key principles:

• Identifying fixed costs: From flights to hotels, understanding your baseline expenses sets the foundation for your vacation budget.
• Estimating variable expenses: Think meals, entertainment, souvenirs and anything else you might want while there. Since these expenses are variable, the key is to set a ballpark figure that you can use in your calculations. It may help to overestimate slightly if you can, so you’re less likely to be left short in the moment if an unexpected opportunity arises.
• Setting aside a vacation emergency fund: Because the unexpected can happen, it might be wise to have at least some funds available to stay prepared for emergencies that may pop up, like emergency car repairs on a road trip or medical emergencies.
• Prioritizing experiences: Deciding what’s non-negotiable vs. what can be flexible allows for more targeted spending.

2. Plan ahead of time

There’s an old saying that the early bird catches the worm, and when it comes to vacations, this adage may hold more truth than you might think. Planning your trip well in advance can potentially reveal several savings opportunities.

Early bird deals are typically available months before peak travel seasons, offering significant savings on many of the major expenses in a vacation. Here are a few areas you might want to consider proactively planning for:

• Destination selection: Locking in your destination early provides more accommodation choices, and perhaps at better rates. Plus, it gives you extra time to research inexpensive activity ideas specific to the locale.
• Time of travel: Opting for off-peak seasons or weekdays might save money and give you access to major attractions when they’re less crowded.
• Booking transportation: As with your accommodations, the rates for everything from airfare to train tickets tend to rise as you near your intended departure date. Early commitments may mean more affordable options.
• Package deals: Some bundled offers may provide better value than piecemeal bookings, potentially combining travel, accommodation and even activities under one bill.

3. Choose budget-friendly vacation destinations

Destination choice is a big factor in budget friendly vacations. It’s not just ticket price; various aspects of where you’re going can influence the total cost of your trip. Here are a few:

• Cost of living: The price of basics in your destination, from food to general shopping, might be a factor to weigh against the cost of getting there. For example, a distant location may be costly for travel but cheap to stay and enjoy yourself once there.
• Cultural events: Major cultural events and festivals can offer unique and memorable experiences, but they may also be potential tourist traps with higher-than-usual prices.
• Visa and entry fees: Being aware of any added costs for entering a country may help avoid unexpected expenses during planning or upon arrival.
• Exchange rates: Keeping exchange rates in mind may help you find places to travel where your budget goes further. It may also help to be aware of currency exchange fees, so you can avoid having an uncomfortably large chunk of your travel cash eaten up by fees.
• Local transportation: The ease and cost of getting around will factor into your costs and your options for activities while there.

4. Choose budget-friendly accommodations

After choosing a budget-friendly destination, you’ll also need an affordable place to stay. This is another area where doing your research ahead of time might really pay off. If you plan to spend most of your days out and about and just need a place to sleep, luxurious furnishings and amenities may be less of a priority which could help save some money on hotels.

Another potential option is to use an online platform that offers short-term vacation rentals of someone else’s home. This offers the added advantage of potentially saving on meals as you could choose to hit up a grocery store and do your own cooking and meal prepping for some (or all) of your meals. Alternatively, you could look for hotels that offer these types of amenities.

5. Meet people

For many, travel is as much about the people you meet as the places you explore. When you’re trying to vacation on a budget, tapping into local knowledge could potentially yield unique and unexpected opportunities that may not cost a dime.

Locals can give you the inside scoop on your destination, pointing to hidden gems that might not be the usual tourist hotspots. This could be serene natural settings off the beaten path or local eateries with authentic cuisine that doesn’t come with the heavy price tag of major tourist centers.

6. Do your own driving

When feasible, driving might be a more affordable option than flying — especially for shorter trips or when traveling as a family or group. Beyond potentially saving on airfare, taking a road trip offers further flexibility in your plans. No worrying about missed flights or tight layovers, just the open road and the freedom to stop and smell the roses. You could also consider renting a car at your destination to save on local transportation. Like the rest of your travel planning, consider shopping around and booking ahead of time to potentially nab better deals.

7. Consider inexpensive activities

Vacations aren’t just about where you go, but what you do, and memorable experiences don’t have to come with a price tag. Whether you’re plotting inexpensive weekend getaways or full-on escapades, there are plenty of activities that can be fun without emptying your vacation budget.

• Nature walks and hiking: Many natural attractions are readily accessible and free of charge. Local parks, trails or beaches can all offer an invigorating day out and may even provide other unexpected activities and opportunities.
• Local markets: From fresh produce to artisanal crafts, local markets offer a window into the local culture, and often feature some more affordable shopping options as well.
• Museums and cultural centers: Many cities offer days when entry fees are waived or reduced. Researching and planning ahead of time may help you capitalize on these opportunities and have enriching experiences at minimal cost.
• Self-guided tours: In the digital age, there are plenty of apps and online resources to help you explore a city’s history and architecture at your own pace.
• Workshops and classes: Some communities offer free or low-cost workshops, from pottery-making and cultural dances to cooking classes for local cuisine.

As an extra tip, consider looking into package deals on activities. City tourist centers sometimes offer packages that include discounts or discounted rates on multiple outings or activities. Exploring the city’s public transportation options may also yield a chance to potentially save on getting around from one activity to another.

8. Save for vacations over time

Your dream vacation doesn’t need to put stress on your finances. By integrating vacation savings into your regular budgeting and savings habits, you can make a habit of steady planning. Here are a few tips for saving for your next vacation on a budget:

• Begin early: Early birds get more than just deals — they get more time to save. Starting months (or possibly even years) ahead spreads out the savings process, making it more manageable.
• Set clear goals: Having a rough estimate of your trip’s cost helps determine how much needs to be set aside monthly or weekly.
• Start a vacation fund: Consider setting funds aside in a dedicated vacation savings account for your vacation. This might help stave off the temptation to dip into your vacation savings for other needs.
• Automatic transfers: Some people find it helpful to set up automatic transfers from their main account to their vacation fund, helping to keep saving consistent.

In summary

Learning how to vacation on a budget doesn’t have to mean pinching pennies on travel or accommodations. By doing your best to do most of your vacation planning before you pack your bags, you might find you can take that plane, train or automobile a little further. Picking your destination early, planning your activities and considering a few adjustments are all helpful ways to stretch your dollar further.