TRAVELOKA✿ How to Plan Your Travel Budget

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Travel abroad sounds fun - PSYCH! What is traveling anyway nowadays? Hello, Circuit Breaker Phase 2, my old friend! How we wish not to meet, but alas, here we are. COVID-19 is a big fat party pooper.

Okay, ranting aside, we are all frustrated at this recent change. But, for the sake of keeping our travel hopes and dreams alive, we can still plan for the future, right?

One thing we can do to optimize our time now is not to dream, but rather,  plan. We know travel will be possible again, hence, we should start planning our travel budget because our budget can be chaotic sometimes. I bet once the border is open, people will start panic traveling with no proper arrangements made ahead of time.

If you know how to manage your budget and plan your trip well, you can spend less on worrying about money and more on enjoying your vacation (which is way overdue). Here are tips for those wanting to travel with an optimized budget.

3 Core Elements of Budgeting Your Travel Plan
Start a Dedicated Travel Fund

This is the first step you can take before you travel. Make it a habit to put aside some money for travel, even if it is just SGD 10. Feed your travel tip jar daily, weekly, or monthly and make sure you are consistent with it. All those savings will pay off when you are going to travel later.

Rachel Cruze, a two-time #1 national bestseller author, and financial expert wrote an article on budgeting your travel plan which is a splendid additional resource to read! Plus, she also includes a Travel Budget Worksheet that will help you arrange your travel budget properly. Budgeting is always the key to save unnecessary headaches afterward.

(Source: Vacation Budget Worksheet from “How to Plan a Trip on a Budget” by Rachel Cruze)

Create an Emergency Fund

The emergency fund is the money that you reserve and will be used for...well, emergencies. Wanting a new bag or new shiny stuff is not considered an emergency. Keep walking!

It is important to keep some amount of money during your trip that is not taken from your initial budget. Although you have travel insurance, it takes time to get your claim back. You can put any amount that you think will cover the medical bills if an accident happens and you need that extra cash instantly.

Now, we have our budget, we are all set! But wait, here are some tips you can take to save more money during your vacation!

Transportation Budget

Transportation is important as you need it to either book a flight to the destination or to move around cities during your stay there. Here's how you can save on transportation during your trip.

(Photo credited to Elviss Railijs Bitans)

Take the opportunity to use public transportation to travel within the city. It can save you a bunch of benjamins. You can either take the train or bus to get the best out of your travel. Not only will you save money, but you are able to view the areas from the local perspectives.

Accommodation Budget

Accommodation is also an important aspect to look at; it can either make or break your bank account. There are many types of accommodation out there; from budget-friendly hostels to high-end suites. Some can save you more money than others.

(Photo credited to Free-Photos)

One thing you should consider while choosing your accommodation is its location. If you stay in the heart of the city, everything will bound to be extra expensive. Choose somewhere a little bit off the bustling cities - but not too far into the depths of the unknown.

Another tip to save your budget is by choosing a hotel that provides free breakfast. We all like free stuff! The breakfast is usually served in a buffet, so you can get unlimited servings. Your wallet will be intact and your pants will probably be very tight, but hey, at least we have an extra budget to buy new pants!

If you plan to travel with your family or in a large group, the best place to stay during your trip is apartments. They are cheaper and able to accommodate big groups. Bonus point, you'll get your own kitchen area! You can cook your own meal without getting a stroke from the bill.

Activities Budget

There are many activities that you can do in any country without tearing up your budget. Here are a couple of budget-friendly activities that you can do during your travel.

(Photo credited to Jill Wellington)

You can save your budget by shopping at street markets instead of shopping malls. There is a wider selection of items at affordable prices. If you are good at bargains, you can even get more discounts. Who knows? You might also find hidden gems that you won’t usually find at luxurious shopping malls.

Enjoy nature! Go to the beach and stroll through town rather than allocating more money going to expensive attractions. Now, that doesn't mean you can't do so - even I want to go to Universal Studio or Disneyland. It's good to experience nature in other parts of the world.

Although things are tough for us now, keep your hopes high that we will be able to see the sights of Hong Kong sceneries, taste Malaysia’s local dishes, experience Taiwan’s amazing cultural heritage, and soon, the rest of the world