Why and how to make a good travel budget for your long travels? First of all, there’s no such thing as a perfect budget. You always forget certain costs and you can always try to spend less than you budgeted for.
So why prepare a travel budget? The answer is simple, so you can manage travel costs during your travels and maybe even travel longer than you budgeted for in the first place. Also, it can help you start your travels and helps you to keep on traveling.
What to include in your travel budget
So what do you have to include? Here is a complete list of all the different types of costs we make during our travels.
- Food and drinks
- Transportation (trains, buses, flights, etc.)
- Excursions and entrance fees
- Other groceries (shampoo, toothpaste, etc.)
- Visa application fees
- Travel insurance
- Health care insurance (might be included in your travel insurance)
- Bank charges
- Ongoing subscription fees (such as online services, phone subscriptions, etc.)
- Storage costs
- Presents (cards or flowers you send to family or friends)
- Cost of living when returning home and being without a job
- Contingencies (replacement of damaged or stolen items)
Check out our average travel costs per day in Russia!
Tips for preparing your travel budget
Read the guide book — It can help you estimate your travel budget and make it as complete as possible. For example for China you have to calculate quite a lot of money for excursions, entrance fees and transportation. In China they charge you for about everything. Even a stroll in the park in a random city will most likely cost you an entrance fee. So for the countries you know you’re going to visit, read the guide book and add estimates to your budget.
Check out our average travel costs per day in China!
Rather budget too much than too little — As said before, you’re always missing something in your estimates. So if you budget the things you did include too high, it might compensate the costs you forgot about.
Always calculate some slack in your travel budget — don’t forget the contingencies!
Calculate your travel budget in two different ways — First calculate your travel budget by searching the internet for average travel costs on all type of costs mentioned in this post for the specific countries you’re about to visit.
Check out our average travel costs per day in Mongolia!
Now, let’s see how much you’re able to spend. Check your bank account and find a decent amount of money you want to keep on your bank account after your travels.
So what is the amount of money you can spend?
Is it at least the amount that you’ve calculated? If it’s less, then you might want to adjust your travel budget by visiting less expensive countries or travel shorter. It’s even better if the amount you can spend is more than the amount that you’ve calculated. Because then you have even more contingencies and might be able to spend more time abroad.