Back to Stories

How to Plan a Vacation on a Budget

Here’s how to experience the getaway you’ve earned without overspending.

Everybody can benefit from a little escape every now and then, and by planning ahead and budgeting properly, your dream vacation is within reach. Consider the steps below to get started.

1. Create a vacation budget.

When you know exactly how much you can spend, it’s easier to build a vacation that will meet your needs. To do so, divide your budget into three buckets:

  • Fixed expenses. Flights, hotels and attraction tickets are exact known expenses that establish the foundation for your vacation budget.
  • Variable expenses. Meals, entertainment, souvenirs, and ground transportation can vary on your trip. Set a ballpark figure you’d like to spend, and then you can make decisions accordingly.
  • Emergency expenses. It’s a good idea to set aside some funds for potential emergencies, such as a car repair or unforeseen bill on a road trip.

2. Choose the destination carefully.

The destination you choose will have a big influence on how much money your trip will cost. In addition to the costs of getting there, a number of other factors will influence your variable expenses. For example, consider the costs of local transportation, cost of living (which will affect how much you’ll pay for food and shopping), and exchange rates if you’re traveling internationally.

3. Select accommodations that fit your budget.

Most destinations offer a variety of accommodations, and the one you choose will significantly affect your budget. For example, if you’re going to a theme park, you may be able to save by staying at an unaffiliated hotel down the street versus paying premium rates to stay at a hotel on the property.

Also, if your accommodation includes a kitchen, you might save money by cooking a a few meals versus than eating out throughout the trip.

4. Look for free or inexpensive activities.

Memorable experiences don’t have to come with a high price tag. Wherever you’re going, there are likely plenty of activities that can be fun without draining your budget.

  • Outdoor activities. Whether it’s visiting a local park or finding a hiking trail nearby, most places have plenty of nature-filled activities to explore at minimal to zero cost
  • 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. You can learn about the local culture, especially if you visit on a free or reduced entry day. Researching and planning may help you capitalize on these opportunities and have enriching experiences without spending much.
  • Self-guided tours. Look for apps and online resources to help you explore a city’s history and architecture at your own pace. On social media, use the hashtag for your location to find recommendations from other travelers.
  • Package deals. Many destinations offer packages that include discounts or discounted rates on multiple outings or activities.

Another important tip is to consider integrating vacation savings into your regular budgeting and savings habits. That way, you can make a habit of steady planning and always be prepared for your next getaway. While saving, you’ll get to experience the thrill of planning and the excitement of anticipation.


For example, you could use a high-yield savings account like Growth Savings as a dedicated vacation savings account. By creating a separate account, you may be able to avoid the temptation to dip into your vacation savings for other needs. Consider setting up automatic, recurring transfers to your vacation fund to keep saving consistent, get you closer to your destination, and be financially prepared when you need a vacation.


After your well-earned break, take a quick look back at your spending from your trip to understand how closely you stuck to your plan and help inform your saving and budgeting for your next getaway!

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.

Related Content