How to create a vacation budget without breaking the bank

Getaway goals

Everybody needs a break now and then. In fact, chances are the more you have going on (work, kids, school), the more you need that vacation.

So, if you can find the time to get away, then paying for it should be the least of your concerns. That’s where setting a vacation budget comes in. Planning ahead on what you’ll spend on airfare, lodging, a rental car, experiences and food will make your vacation that much sweeter when it finally arrives. How do you make a vacation budget? These three tips can help make your next adventure, be it solo or with the family, a little more affordable.

1. Plan ahead

2. Cut back on discretionary spending

3. Consider a cash-back credit card with a bonus

Credit cards are loaded with responsibility and, if you have trouble overspending, danger. But for those who have good to excellent credit and the self-discipline not to misuse it, there are many credit cards that offer a bonus of $200 or more to customers who charge a fixed dollar amount within the first few months of opening the account.

If you have enough monthly expenses, you can leverage the card to cover the expenses you’d normally incur anyway. (Think groceries for the family, gas and other daily expenses.) Then you can apply that one-time bonus toward your vacation. Just be sure to read the fine print about the offer. If there’s a fee to hold the credit card, for example, you’ll have to factor that into your budget.

The big decision: How to choose your destination

One of the biggest financial decisions of any vacation is deciding where to go. This can be the make or break for your budget. The destination impacts your travel expenses, what you spend on accommodations, how much meals will cost and the price of entertainment.

With that in mind, here are some options that accommodate varying budgets and interests.

National parks

Big cities

Big cities are notoriously expensive in terms of accommodations and food, but the attractions and experiences can be memorable enough to justify the expense.

For families and individuals who have New York or Washington, D.C., on their bucket list, there are ways to make visiting more financially feasible. If a city serves as a hub for an airline, for example, airfare to that destination might be a little more affordable. Be sure to check fares a few weeks or months ahead of time to get a feel for what’s a good fare.

Staying just outside the city can sometimes be more affordable, and if you can stay someplace with a kitchen, you can cook your own food (and hit local markets for another experience) to save money.

Try putting the free or low-cost tours and attractions at the top of your list to help you save money, and look into museum passes or public transportation passes ahead of time. Sometimes you can buy them early and save on both costs.

Most cities pack a lot of must-see entertainment into a relatively condensed area, which can cut down on transportation costs.

Here are some examples:

1. Washington, D.C.

Our nation’s capital is home to dozens of museums with free admission, not to mention historical buildings, monuments, memorials and parks. Exploring just the Smithsonian museums, the world’s largest museum and education complex, could fill up several weeks. Explore free sites and events, like military concerts, outdoor jazz concerts at the National Gallery of Art, the botanical gardens, the National Zoo and tours of federal buildings, before your trip to plan a low-cost itinerary.

You can get around the city easily by using the Metrorail train system, but energetic vacationers may want to rent a bicycle or even an affordably priced kayak on the Potomac River.

2. New Orleans

If you love music, good food and Cajun culture, the French Quarter is for you. Sightseeing on the city’s famous Bourbon Street is free.

3. New York City

Even the Big Apple offers free sightseeing. A visit to the Statue of Liberty is free (but not her pedestal or crown), and there is a charge for the ferry ride. Other free attractions include:

• Central Park (including free guided walking tours)
• The Staten Island ferry ride from Battery Park, featuring great views of Lower Manhattan and Ellis Island
• Grand Central Terminal, a national historic landmark
• The New York Public Library
• Times Square
• Rockefeller Center
• The Chrysler Building
• St. Patrick’s Cathedral
• The High Line greenspace in Chelsea

4. Boston

There are plenty of free attractions, including historic Quincy Market and Faneuil Hall, free or “name your own price” walking tours at prestigious universities like Harvard, self-guided walks on the Freedom Trail and numerous museums.

5. Los Angeles

Take a stroll down Venice Beach Boardwalk and go celebrity-hunting on Hollywood Boulevard. Tickets to a taping of your favorite game show or talk show are free. There’s no charge to visit the California Science Center or Getty Museum, though reservations may be required.

6. Atlanta

Count on flights to Atlanta to be frequent and cheap. Once there, check out the Fernbank Science Center, the Governor’s Mansion and Martin Luther King Jr.’s birthplace — all free.

7. Las Vegas

Las Vegas offers free light shows and museums and is guaranteed to keep you entertained around the clock. Airfare to Vegas is low, and many hotels offer discounted rates with cheap buffets.

Quaint towns

If the big city is not for you, you can experience the charm of small-town America with a variety of state fairs and festivals that are both amusing and entertaining. Many small towns offer reasonably priced accommodations, meals and attractions where you can enjoy a leisurely visit without the hustle and bustle, crowds or sticker shock of a larger city.

Here’s a sampling:

• Every May, the Orange City Tulip Festival (Iowa) features parades, marching bands, reproduction Dutch windmills and thousands of tulips.
• Ashland, Oregon, puts on an Oregon Shakespeare Festival virtually year-round.
• The people in Little Chute, Wisconsin, hold the Great Wisconsin Cheese Festival in June.
• Plymouth, Massachusetts, holds its America’s Hometown Thanksgiving Celebration in November.
• In Yale, Michigan, the three-day Bologna Festival is held every July and culminates in the crowning of the coming year’s King and Queen of Bologna.
• Don’t forget Sedona, Arizona’s Hummingbird Festival in July or the Albion, Michigan, Festival of the Forks in September.

Camping

Camping remains one of the most affordable ways to vacation, and while you may have to give up a few creature comforts as you hit the sack in your bag, tent or camper, you may also be surprised to learn that roughing it may not be as primitive as you imagine. In addition to breathtaking beauty and hiking, boating, swimming and fishing opportunities, many of today’s campgrounds offer:

• Wireless internet access
• Fitness centers
• Basketball, volleyball and tennis courts
• On-site laundromats
• Heated pools
• Miniature golf and video arcades
• Restaurants and cafes

Looking for something different? Consider Lake Chelan National Recreation Area, where you must boat in (or take the ferry) across the scenic lake to land in Weaver Point, a stunning, fjord-like valley in the North Cascades range of Washington state.

If you want to save money on gas, chances are you can find some campgrounds less than an hour away, and you’ll still feel like you’ve gotten away from it all. Here are a few more tips for saving while camping:

• Camp during off-season months, like May and October, for further savings on campsites and activity fees. (You’ll also avoid traffic, crowds and mosquitoes.)
• Save money on pricey restaurant meals in favor of old-fashioned cookouts over an open fire.
• Bring the dog and save on kennel boarding fees.

Start planning!