Vacation budget planning how to#

‍ How to Properly Manage your Travel Budget? In this budget, you can easily do 10-12 days of domestic trips or 5-6 days of international trips, considering you are mindful of your expenses. Hence, following the 5-10% rule, your annual travel budget should be 50,000-1,00,000. The rest of 2 Lakh should be saved and invested. Let's understand this with a small example.Īssume your post-tax annual earning is 10 Lakhs.ĥ0% of it should be allocated for your needs, i.e., 5 Lakh. Hence, you should earmark roughly 5-10% of your salary as your vacation budget.

Therefore, it would cost you quite a lot. When traveling with your family, you plan to stay at decent properties you need a bigger vehicle so that everyone is comfortable and you have to spare some money for shopping and fancier food.

There is a massive difference between vacationing with your family and traveling solo. ‍ How Much should you allocate for Traveling? You should save and invest the rest of the 20% towards meeting your financial goals. It can include eating out occasionally, going to movies, shopping, and traveling. These expenses are mostly fixed.ģ0% you can spend on your wants. According to this rule, you should spend 50% of your post-tax salary on your necessities, which includes house rent (if any), home loan EMI (if any), groceries and vegetables, utilities, etc. Remember the 50-30-20 rule of basic budgeting? Umm…not sure? Let's refresh our memories, shall we? This article will explore strategies for building up a healthier travel budget in this post-pandemic era. Thus, the pandemic has altered the traditional understanding of traveling and vacation budgeting. While most of us have saved quite a lot of money by staying indoors and eating only home-cooked meals, many have also faced salary cuts and acute financial crises.Īlthough people are desperate to return to traveling, the rising recession and excessive price hikes have made that dream out of reach for many. Over 33 months of staying indoors due to the Covid-19 pandemic has sent everyone into a frenzy to get out of home and soothe our souls with some traveling.

Vacation budget planning