How to build a trip budget from start to finish

Short answer: list all the stages of the trip, estimate the cost of each with current prices, add them up and include a margin for the unexpected. Then compare the total with what you can spend and adjust destination, length or categories. The values below are illustrative.

Prerequisites

• A destination and an idea of dates and length.
• Number of travelers.
• A simple spreadsheet or notebook.

Steps

1. Transport. Round-trip tickets, local travel, transfers between airport and accommodation, car rental, tolls and fuel, as applicable.
2. Accommodation. Nightly rates, fees, local taxes and, if relevant, parking.
3. Food. Estimate per day and per person, considering restaurant meals and simpler options.
4. Activities and attractions. Tickets, tours and experiences you already know you want.
5. Documents and insurance. Passport, visas, required vaccinations and travel insurance, when applicable.
6. Shopping and souvenirs. Set a limit.
7. The unexpected. A margin on the total, for example 10% to 20%.
8. Add up and compare with your budget.

An example

For two people, over five days: transport $3,000, accommodation $2,000, food $1,500, activities $800, documents and insurance $600, shopping $400. Subtotal: $8,300. With 15% for the unexpected ($1,245), the total is $9,545. These numbers are fictional.

Common mistakes

• Forgetting small expenses that add up a lot, such as local transport and fees.
• Underestimating food.
• Not setting a margin for the unexpected.
• Budgeting with old prices or from another time of year.
• Forgetting currency conversion and exchange and card fees.

A useful tip is to keep three versions of the budget: a lean one, a realistic one and a comfortable one. That way, if prices rise or the exchange rate changes, you know where to adjust without giving up the trip. Also keep your receipts and update the spreadsheet with real spending, so that the next trip starts from more accurate numbers.

Next step

With the total in hand, define how much to save per month until the date of the trip.