Link to join StockHub free investing discord server: –~–
Good day subscribers thank you so much for joining me today on the financial education channel so today we’re talking about how to budget for vacation and i’m not just talking about a weekend getaway or just some small vacation up to the mountains to go camping or something i’m talking about a big vacation like a week-long to a major travel destination where you’re
Gonna spend quite a bit of money a type of trip that you have to plan for six nine months in advance maybe even a year in advance so i’m gonna go through a couple scenarios with you guys today on how i budget for big vacations and how you might want to start thinking about budgeting this way it will make your vacations much better much less stressful because you
Planned upfront so let’s go ahead and get into this right now on the big board we are gonna plan a trip to hawaii oh hawaii we love hawaii so we got hawaii hawaii trip so don’t matter what big vacation you go on the first two categories will always be on there generally i shouldn’t say always generally be on there one’s gonna be flight so your airfare flight flight
And hotel oh so always number one line think about your flight in your hotel those are two biggest expenses generally and they’re generally always a must now sometimes you can drive to a major travel destination sometimes you might not need to stay in a hotel because you know someone that lives in a major travel destination you stay with them but for most people
It’s unrealistic so you’re probably gonna have a flight you’re probably gonna have a hotel so a trip to hawaii you’re probably looking at about $600 per ticket for your flight so if it’s a couple you know your your husband or your wife or your boyfriend/girlfriend whoever you’re looking at about 600 hours per ticket so that’s 1,200 just in plane tickets if you just
Want a basic hotel in hawaii you’re looking at around 200 a night so if you’re doing a five night hotel you’re looking at 1200 in the flight and you’re looking at a thousand dollars in the hotel because five nights times 200 dollars a night so you’re looking at $2,200 just an air travel and hotel we haven’t even gotten all the fun stuff or anything else like that
Flight in a hotel you’re at 2,200 bucks that’s why trips for the majority of people you need to plan way in advance at least six months minimum before you even think about going on a vacation if not nine months that way you give yourself time where you can save up and save me money toward that trip but when you’re thinking about this trip you need to do this work
All first exactly what we’re doing here that you need to do this figure out all these expenses so flight in a hotel is a number one now a trip to hawaii you may or may not rent a car but if you do rent a car no matter where you go you need to have that in here a car is generally a pretty big expense and very expensive if you are young i know when i was around 21 or
22 i had rent a car we went on a vacation and for five days it was like 600 bucks because i was under the 25 years of age so if you’re under 25 years old and you’re planning on going on a trip you get screwed if you rent a car absolutely screwed so that is something to take into account there now the next biggest category you’re going to spend most of your money
On on major vacation is food so you need to have a budget for food everywhere you go that’s a major travel destination you’re probably gonna want to eat lots of food there and it’s probably gonna be pretty expensive so whether you go to hawaii it’s probably gonna be pretty expensive whether you go to vegas and stay on the strip everything’s very expensive whether
You go to miami everything’s very expensive so don’t matter where well no matter where you go things are gonna be pretty expensive for food so create a food budget and how i do it is i think about okay i’m gonna spend this much for breakfast on average probably this much for lunch this much for dinner so maybe it’s a 10 20 30 i don’t spend $10 for breakfast $20
For lunch $30 for dinner so i’m gonna spend $60 per day times five days there let’s assume we’ve got our $300 and spending for food so figure out this category because this is your next biggest expense so food flight and hotel you’re generally always going to have on every vacation generally okay so now for this hawaii trip so now we got to figure out activities
Budget activities so you need a research do i want to drive to the top of the volcano i’m doing either rent a car for that if i haven’t how much is it for a day do we want to go snorkeling how much your snorkel rates do we want to do this that now you don’t need a plan at all where you’re like booking at all but you need have in your mind okay we’re probably gonna
Do this we’re probably gonna do that we’re probably gonna do this we’re probably gonna go shopping and spend some money and whatnot so have a budget prepared for all those types of things i know when i went to hawaii i probably spend $500 on activities we probably spend $500 on activities so have an activities budget in mind one last category is your emergency
Category emergen three boy that got sloppy head down there thought and it’s hard to write down there so emergency not really like an emergency budget it’s more like a if we go over budget money that’s what it is if we go over budget somehow that’s the last little bit of money so i always suggest no matter what once you figure out all these categories figure out
Like 100 $200 extra just in case you go over on food or just in case you want to do an activity so bad that’s you know 100 $200 you have that in your emergency budget that way you never want to go on vacation and think oh man i wish i could have done that that stinks and then you know because especially a vacation like this it’s not like it’s just going to come
Every year it might be 10 years before you go back maybe 20 years you might never go back you never really know so you want to make the most sets i’ll always have a little bit of money in that emergency fund just in case you want to do something else while you’re there so let’s assume this was vegas instead of hawaii you’re planning on a trip to vegas so flights
Probably gonna be cheaper because you don’t have to fly all the way over across the ocean hotels are gonna be a little bit cheaper you can probably get a hotel for about 150 at night nice one and versus you know 200 plus if you’re going to hawaii car a car if you’re going to vegas trip you might not need to get one you can probably just uber your way around or
Walk the strip because most likely you’re gonna stay on the strip your whole entire vegas stay so uh you know something like this you probably wouldn’t even want to rent a car because we’re gonna spend way more money rent in a car and it’s just probably gonna sit in the parking garage most the time food obviously you need your food budget like always always play
Your hotel or food activities so if you’re doing a vegas trip you’d want to think more like okay how much do i want to spend on gambling okay i’m gonna set $200 aside for gambling how much do i want to set aside to go to a club okay i’m gonna need a $200 go to club because $50 to get in for a person then we’re gonna spend $50 each on drinks or whatever you’d want
To think what are some other activities you would do in vegas zip lines they have a lot of zip lines things like that in vegas i’m trying to think of other things just think of things whatever what would you want to do in vegas probably just party and have fun maybe gamble a little maybe go to a club drink and try to forget about your time no i’m just kidding so
You need that activities category your emergency category same thing so you would cross out vegas you put new york in here you could put miami you could put wherever but do it this way flight hotel do you need a car food activities emergency and this will make your vacations that much better that much more fun that much more enjoyable very less stressful because
You’ve already budgeted everything you have it all set aside you’re not dipping into funds that weren’t for that vacation you’re only dipping into funds that you had already set aside strictly for that vacation and then you could just have a good time because you know what you budget fur at all and now it’s just time to enjoy sit back and have fun anyways guys
Thank you so much for watching as always if you enjoyed this video and you think it was good hit the thumbs up button if you did not hit the thumbs down button even though i don’t like thumbs down but you know what if you don’t like it anyways subscribers thank you as always if you haven’t subscribed you may want to financial education channel i’m just trying to
Build everybody’s financial knowledge up one day at a time thank you guys have a great day
Transcribed from video
How to Budget for a Vacation – TRAVEL BUDGET By Financial Education
