The Importance of Setting a Budget

Hey there, one of the biggest mistakes new travelers make it not only failing to set a budget but underestimating costs.

It's important to understand that your trip will end up costing you more than you anticipate, even if you are trying hard to set a strict budget.

From spending more at restaurants than expected, or deciding to splurge on an extra attraction or event, you'll want to save up at least 50% more than you assign to your budget.

That way, you're covered in the event you go over budget but also, you're able to truly enjoy your trip without worrying about every nickel and dime.

Tip: Start saving 8-12 months before your trip. Create a budget worksheet that includes all of the expenses you anticipate and then leave a cushion for unexpected costs.

You'll also want to leave room for tips!

One way you can cut expenses is to identify your priorities.

• What is on your must-see or must-do list?
• What are you willing to sacrifice to save money?
• What discounts and deals can you find online?
• How much of your trip can you pay for in advance?

Start your budget with the largest expenses first. This will usually be your flights and hotels. Categorize
your expenses based on highest to lowest.

Then, figure out an average daily cost that includes attractions, meals, travel, and accommodations. This will at least give you a rough idea as to what to expect.

Again, add a bit of a cushion for the occasional splurge!

This is your opportunity to unwind and enjoy your time away so you don't want to be so restricted by a tight budget that you can't truly experience everything you desire.

That's all for today.

Keep an eye out for my email tomorrow because we're going to talk about one of the worst mistakes you can ever make when planning your travel: getting scammed.