Plan a Debt-Free Vacation

Think it’s impossible to plan a fun vacation without going into debt? Then, think again. With a bit of planning, you can enjoy a well-deserved break without breaking out the credit card. Here’s how:

1. Figure out what you can afford to spend.If you’re going to pay for a trip out-of-pocket, you’ve got to know what you have to spend. Crunch some numbers to determine just how much you have to devote to your vacation. Don’t worry if the number is small or even non-existent—creativity can make up the difference.

2. Form a realistic plan.Once you have a budget for your vacation, use it to determine what you can afford to do, instead of what you would like to do. Only have $100 to devote to your trip? Then, a cruise probably isn’t an option, but lots of other things might be. For example, you could make plans to visit a relative, arrange for a series of day trips or even vacation at-home. If you’re not sure what kind of trip your budget will buy, spend some time looking at travel deals online.

3. Make all of the arrangements.After you’ve determined your destination, it’s time to put your bargain-hunting skills to work. Challenge yourself to find the best deal on lodging, food and everything in between. For lots of money-saving ideas, consider these sources:

Affordable Vacations

Take Your Thriftiness on the Road

Ways to Save on Souvenirs

4. Crunch those numbers again.Jot down all of the known expenses for your trip (hotel, attraction admission, parking, etc.), and estimate the expenses that you don’t know (gas, food, souvenirs, etc.). Then, compare this number to the amount that you’ve budgeted for your trip? Do you plans fall within your budget? If not, go back and rework your plans until they do.

5. Build in a cushion.Vacations have a way of costing more than you’d expect, so it’s important to build a bit of wiggle room into your budget. If you can plan a trip that falls below your budgeted amount, you’ll have the money that you need to cover those overages with ease. Just what sort of things do you need to budget for? Car repairs, higher than expected food and souvenir costs and rising gas prices are just a few to consider.

Remember: The goal is to plan a debt-free trip, so you need to plan for the worst-case scenario, not the best-case scenario.

6. Go out and have some fun.Know what the best part of a debt-free vacation is? Not having to worry about how you’re going to pay for it. Plan your vacation carefully, and then go off and enjoy it guilt-free!