Summer Vacation on a Budget: 5 Tips to Make the Most of Your Getaway

Summer is just around the corner, but you still have time to plan for a fun filled vacation even on a budget.

As someone who values both financial responsibility and the importance of taking a break, I understand the struggle of balancing a budget while craving a getaway. Life's demands can be relentless, but that doesn't mean we have to sacrifice the joy of vacationing. With some savvy planning and a dash of creativity, it's entirely possible to enjoy a memorable vacation without breaking the bank. Here are five tips that have helped me stretch my vacation dollars.

1. Book early, but not too early:

For those of us who love to plan ahead, booking airline tickets well in advance might seem like a wise move. However, did you know that there's an optimal time frame for snagging the best fares? Typically, the sweet spot lies between 1 and 4 months before your trip. So, before you rush to book that flight to your dream destination, consider waiting a bit to secure the best deal. Keep an eye on fare trends and set up price alerts to capitalize on any drops in ticket prices.

2. Weigh the cost of a hotel vs. a short-term rental:

Gone are the days when hotel bookings were your only option. With the rise of platforms like Airbnb, travelers now have a plethora of accommodation choices. While Airbnb initially offered budget-friendly alternatives, the landscape has evolved, and sometimes hotels may offer better value, especially for solo travelers. Consider your needs, group size, and length of stay when deciding between a hotel and a short-term rental. Additionally, factor in additional costs such as cleaning fees, service charges, and amenities when comparing prices.

3. Give yourself a daily budget instead of a vacation budget:

Sticking to a budget can be challenging, especially when you're exploring new destinations with tempting experiences and culinary delights. To avoid overspending, I've found it helpful to allocate daily spending limits rather than one lump sum for the entire trip. Once I've reached my daily budget, I focus on free or low-cost activities and cooking meals at home to stay within my financial boundaries. Be sure to account for all expenses, including meals, transportation, attractions, and souvenirs, when setting your daily budget.

4. Use public transportation in metro areas:

Exploring a new city can be costly, especially when relying on taxis or ride-sharing services. During a recent trip, I opted for public transportation and purchased a day pass for just $5.65. This decision not only saved me a significant amount on transportation costs but also allowed me to treat myself to a delicious lunch at a fancy restaurant—a luxury I wouldn't have indulged in otherwise. Research the public transportation options available at your destination and plan your itinerary accordingly to make the most of affordable transportation options.

5. The best places are off the beaten path:

When exploring a new destination, I make it a point to seek out local haunts favored by residents—the cozy eateries, hidden parks, and charming shops that capture the essence of the locale. For me, true vacation experiences are found away from tourist traps, in the authenticity of everyday life and the unique flavors of a community. Don't be afraid to wander off the beaten path and discover hidden gems that most tourists overlook. Engage with locals, ask for recommendations, and embrace the opportunity to immerse yourself in the culture and lifestyle of your destination.

By implementing these 5 strategies strategies, I've discovered that budget-friendly vacations are not only feasible but also enriching. With a little planning and a willingness to explore beyond the obvious, you can create unforgettable memories without breaking the bank. After all, the best adventures often lie off the well-trodden path. So, embrace the opportunity to travel smart, spend wisely, and savor every moment of your summer getaway.

Marina

The Resourceful Money

3 Things to do Before the End of the Month

Don’t let the anxiety of the end/beginning of the month get to you. Creating a budget routine is key to reduce the anxiety around your finances. I like to use the “living on last month’s income” method – you can read more about it here – and for me the end of the month is the best time to make sure everything is accounted for. Here is my top three things to do during my budget routine at the end of the month:

1.      Check that your account balance is ready for next month’s bills

By the last day of the month you will have received all of your current month’s income and it is time to transfer the balances to their respective accounts according to your budget. Not having automatic transfers forces me to stop and look at my accounts and budget – if automatic transfers work for you, great, go for it and don’t think twice! For me, one of the most important parts of creating a budget is to find a system that works for you.

2.      Check that all your planned expenses for the current month posted

Every once in a while, after doing my balance transfers one of my accounts has a significant higher balance than what’s on my budget, when this happens, I pull up the last 30 days and try to identify any bills that didn’t post. There is usually a couple things that can cause that: the issuer has one of those 31 day billing cycles, which inevitably will post the bill on the 1st or the 2nd of the next month, even though it is technically a bill from the current one. Another issue is if the autopay failed to post for some reason, usually billers will send you reminders about it, but who doesn’t get 107 emails per day and ignores about 93.4% of them? I do…

3.      Transfer any surplus to your savings - or transfer money from your savings if you have a shortage for the next month

And then sometimes that is a more rewarding type of difference in your account, maybe you received a refund of some sort and yay! “free” money. Not really free, more like unplanned, but I will take an unplanned positive balance than an extra expense any day. I usually have two main destinations for those refunds, they usually go towards my savings, or I buy something that has been sitting on my wishlist for a while, without the buyer’s remorse. If you are creating an emergency savings, I don’t recommend indulging in a wishlist purchase, that extra money can help you achieve the emergency savings goal faster and once you are there you will be able to become a little more flexible with your spending. More often than not though, there is a shortage in your budget, unexpected expenses pop-up all the time, a birthday here, a tire there, life is made of unexpected expenses if you ask me and living on last month’s income and having a budget can help you navigate those with a little less stress attached to it.

Marina Boeira

The Resourceful Money

Financial wellness by living on last month's income

My first step towards financial wellness

When my husband and I first got married, our finances were far from organized, and we were barely making ends meet. We had no savings, and the rent was late more than once. To break free from this cycle, one of the initial steps I took was getting us a month ahead. While I was accustomed to budgeting for myself, the dynamics changed when we started living together and relied mostly on my husband's salary. With increased expenses, we needed a plan.

Reduce Impulse Spending:

I began by creating a monthly budget covering fixed expenses and adding a "getting ahead" amount, equivalent to 1/6 of that budget. The plan was straightforward – save 1/6 of our fixed expenses each month with the goal of being a full month ahead within six months.

Rather than saving the money separately, I utilized the 1/6 portion to pay some bills early, intending to make the process more seamless once we reached the sixth month. For instance, if the car payment was due on the 10th, we paid it on the 1st. As our paychecks came in, the money stayed in the account until our designated "budget day," usually after the last paycheck of the month or the month's end, aligning with our pay cycles.

Build Savings

On "budget day," - mind you this was before autopay was a thing - we wrote checks and mailed them at the beginning of the month. Even for bills not yet posted, the budget was set aside, and as soon as the bill arrived, well before the due date, the check was mailed. Budget days became a dedicated time for open communication, aligning our aspirations and ensuring that our financial decisions were in harmony with our long-term objectives.

Financial Peace of Mind

Living on last month's income marked the beginning of our financial journey, reshaping our mindset about money. We replaced the constant worry about covering rent or paying late fees with financial awareness and commitment to change. It helped us, and it can help you, break the cycle and start your journey towards financial wellness. It is time to take control of your financial future – let's start this empowering journey together!

Marina

The Resourceful Money