My husband and I agree: One of our favorite trips ever was to Iceland. We were attracted to the mysterious and awe-inspiring landscape as well as the relatively short (and moderately priced) overseas flight. We went into the trip with fairly low expectations and left entirely smitten: The bubbling hot springs, friendly puffins, jaw-dropping waterfalls, welcoming people, and otherworldly landscape captured our hearts. We couldn’t wait to go back, and had plans set for … September 2020.
As you can probably guess, that was the first of many trips to be canceled as a result of the pandemic. We’ve had to scratch our travel itch the past two years by watching movies, documentaries, and YouTube videos of places we can’t wait to explore.
If you, like us, have been dreaming about just getting away after so much time spent locked away at home, you might be tempted to schedule that trip without giving a thought to your budget. You survived a pandemic — you deserve it, right? While I have no doubt the trip would be enjoyable, the financial aftermath will not be. To make that vacation you’ve been dreaming about a reality without breaking the bank, explore these questions:
What are your priorities for the trip? So you’ve spent a lot of time looking at pictures and videos of the destinations you want to visit …but before you plan your itinerary, identify what you really want to get out of your vacation. When my husband and I went to Iceland, our biggest priority was to see the landscape on our own terms. We rented a car so we could venture out at off-peak times of day and avoid the bus tour crowds. And we booked a centrally-located Airbnb with a nice kitchen for cooking most of our meals so we could easily adapt our schedule.
Tip: Pick 3-4 trip priorities and keep those as your focus while you are planning. It’s tempting to want to experience it all. But realistically, no matter where you go, you won’t be able to see and do everything. Focus on what’s most important and leave the rest for another trip.
How much will it actually cost? With those priorities in mind, let’s move to planning your itinerary: Where will you go? How will you get there? What will you do each day? Will you make your own food or go out to eat? Be as detailed as possible. This isn’t a place to cut corners or make estimates. Research the real costs of the trip. For instance, you may think you’ll just eat a granola bar in your hotel room every day for breakfast, but in reality you’ll probably go to that cute breakfast place down the street a few times. Don’t forget to build in a small buffer for unexpected expenses that will likely arise on the trip.
Tip: Trying to figure out where you should splurge and where you should save. Check out this article!
How much money do you have to spend? For some, the pandemic meant a hard financial hit; for others, it’s been an opportunity to put more money away. If you’re in the latter group, could some of your savings go toward this trip? Are there work bonuses or tax refunds coming your way soon? Can you find room for a ‘trip fund’ in your monthly budget?
Tip: Many people have used stimulus checks and other pandemic savings to repay debt and bulk up their emergency savings. While it may be tempting to touch that emergency nest egg or put “just one more thing” on your credit card before you pay it off, you don’t want to erase the financial progress you made. Building up emergency savings and repaying debt are key to building a strong financial foundation. Instead, take a look at discretionary income or savings.
What’s your timeline? Given that this is a dream vacation, take a moment to consider how long you’d like it to last. I’d suggest putting together a Plan A and a Plan B. How many days will it take to do your priorities justice? How long do you need to be away to actually feel rested? Staying an extra few nights after you’ve already paid for the travel there and back (particularly flights) isn’t likely to add too much extra to your cost, especially since many hotels and resorts have discounts available for staying additional nights.
Tip: If you can, consider adding an extra day or two on the front or back end to prepare for your trip before you leave or unpack without feeling rushed.
What lifestyle and/or trip adjustments can you make? You’ve got the trip, the money, and the timeline … now it’s time to build your plan. If everything matches up, then you’re good to go. If not, consider how you might make this work. Can you adjust your monthly budget to put away a little more towards your trip? Are there additional ways to bring in income? If it’s going to be tough to make things work with your Plan A timeline might you consider moving to Plan B? If the numbers just aren’t working out, it may be tempting at this point to scrap the trip or minimize trip expenses. I’d encourage you to stick with it and don’t skimp on your priorities. While there may be some ways you can cut expenses that won’t impact your trip, and you can certainly take advantage of those, you want to make the travel worthwhile. The last thing you want is to save up for a trip only to get there and be so restricted you can’t enjoy yourself.
Tip: Looking for a few simple ways to cut costs that will have a minimal impact on your trip? Check out this post with my favorite travel hacks!
Curious about how we made one of our dream trips (Paris!) a reality? Learn more in this post!