Time and Money (aka Reality)–Part 1

Adventure is a State of Mind

I was once with a group and we were swapping stories about trips we had each taken when the topic of trip planning came up. As we shared how we initially choose where we want to go, I was shocked when one person explained that she looks at her bank account, and where she decides to go is inspired by how much money is in her savings account. This seemed completely contrary to my way of planning, especially given that my brain is always percolating with, at minimum, at least three places I want to visit in the not-too-distant future. But it made me think.

Consider Your Budget

Although I tend to start by thinking of where I want to visit, the savings account method may not be the worst way to plan a trip. Too many people put most, if not all, of the expenses for their dream trip on a credit card. Then the struggle to pay off the debt over months, if not years, taints their memories of the trip. Sometimes finances even add a level of stress to the actual trip itself as the traveler adds up the cost of activities and meals while they are also trying to enjoy them.

As much as I love to travel, I firmly believe that no one needs to take a trip for pleasure if they cannot pay for the vacation at the time it is taken. There are so many fun and amazing things to do close to home that a “staycation” is a very viable option when funds are low. Or there are other low-cost alternatives, such as traveling a day’s drive away and camping or staying with friends or relatives.

Check Your Time Budget Too

Although it is (to my mind at least) the least fun part of trip planning, budgeting is important given we all have limitations as to how much time and money we have available for the trip we are planning to take, and both need to be taken into consideration. If you are one of the lucky mid-lifers who have achieved retirement, time may be more abundant; but even in retirement, you probably have limitations of some sort, such as wanting to be back home for your favorite holiday or a grandchild’s birthday.

Limitations do not equal deprivation, however. Sometimes having limits to either time and/or money can encourage out-of-the-box thinking that may result in creative and fun adventures that you would not experience if you had unlimited resources. For example, when my husband, Greg, and I are traveling, with or without friends, we know that we can save money by not eating every meal in a restaurant. Visiting markets, grocery stores, and local bakeries to create simple meals has not only saved us money, but has given us opportunities to meet locals and experience the delicious food that they often eat at home. Not to mention we have memories of some wonderful picnics.

Planning With the Destination in Mind

If you want to, go ahead and start the planning with a look at your bank account. No judgment here! But if your personality is more like mine, figure out where you want to go, look at the things you want to do and visit, and then estimate how much it will cost. To do this, especially if you are planning to travel to someplace you don’t know a lot about, use the internet to look at the range of prices for transportation — plane tickets, a rental vehicle if you plan on having one, the price of public transportation in the area with an estimate of how frequently you will use it — along with estimates of lodging and tickets for activities such as museums.

Estimated Expenses

Food and other expenses can be more difficult to estimate. If you have previously traveled to the area you are planning to visit, you will likely have a general idea of how much you will spend on food. If not, there are several ways to approach this. Many travel guides (such as the Lonely Planet book series) will give a general estimate of daily expenses and may give the average cost of a meal in the restaurants they recommend. Similarly, travel blogs and forums on the internet will sometimes have discussions about how affordable or expensive it is to pay for food and transportation in a specific country or city.

If you are unable to find this information, another way to estimate how much money you will need for your daily expenses is to seek out general information as to a country’s consumer price index. One of my favorite websites for this is Numbeo. It provides not only information about some common items you might order in a restaurant or buy in a grocery store for many cities and countries, but it also will allow you to compare a location you’re researching with one with which you are more familiar, such as your hometown or a close major city. This can give you an intuitive feel for how expensive an area is going to be.

Once you have estimated the expenses of the trip you are planning, compare this to the amount of savings you have available. Hopefully, you’ll be in the very satisfying position of knowing that you have more than enough for the trip and you can jump right into figuring out if you have enough time.

Working With Your Budget

If, however, you experience the cold shower of reality that your dream trip is going to cost far more than you had hoped, it doesn’t mean that you have to give up at this point. You do, however, need to go back and re-evaluate your plans. Identifying your priorities can help you to make some decisions about what you most want to do and what you might be willing to give up or do differently so that you can afford what is higher on your list of priorities.

Sometimes you can still take the trip but with some modification — maybe you don’t rent a car and instead limit yourself to only going where your feet or public transportation can take you. Or maybe you decide to choose a less expensive place to stay. Sometimes shortening your trip by a day or two or avoiding the peak tourist season can also save enough that you can still take your dream trip. At other times, you may realize that you aren’t interested so much in a specific location as in a general type of experience, and you may consequently decide on a less expensive but similar option — for example, you may still travel to Europe but decide to stay in Germany instead of Switzerland. Or finally, you may keep your plans for your dream trip but decide to postpone it for a year or two in order to save more money.

Baby Steps

Most of the time, I think people assume that traveling abroad is going to cost more than it has to cost. This is especially the case for those individuals who have only taken guided tours up to this point. Sometimes, though, you may come to the conclusion that the trip you want to take is more than you think you will ever be able to afford. If this is the case, don’t despair! Instead, start small. It is easy to be overwhelmed by any large goal, whether it is saving money to take a trip or it is tackling a kitchen counter full of dishes after Thanksgiving dinner. Either one can seem like too much when viewed all at once, but both goals can be achieved with small, steady actions. Just as a multitude of dishes can be washed one dish at a time, a significant amount of money can be saved one deposit at a time. I recommend setting up a separate vacation account with your bank (most will do this for free), and if possible, set up weekly or monthly automatic payments into that account.

If you’re not sure yet where or when you’re planning on traveling, you can still begin saving. Start with a small amount, and if you realize you can afford that amount without much pain while still paying your bills, gradually increase the amount. Alternatively, if you have a trip in mind with an estimate of how much it will cost and a goal of when you want to travel, you can count up the number of months (or weeks) until you want to begin your adventure and divide that number into the estimated cost of the trip. That will give you the amount that you need to save every month (or week) to get you to your goal. Sometimes thousands of dollars can feel like an amount you’ll never reach, while $50 a week seems very attainable.

Why do you go away? So that you can come back. So that you can see the place you came from with new eyes and extra colors. And the people there see you differently, too. Coming back to where you started is not the same as never leaving.

Terry Pratchett

Avoid Making Assumptions

If you’re traveling with others, make sure to have a budget discussion with them as well. (See How to Avoid Ruining a Good Relationship and Some Questions to Get the Travel Party Started.) I think it’s helpful to approach the discussion with the questions of, “How much do you want to spend on this trip?” rather than, “How much can you spend on this trip?” It may be a minor difference in wording, but it’s important not to make assumptions about how others want to spend their money. Your travel companion may have a smaller house and older car than you, but they may choose to spend much more on trips than you do. Conversely, you may have a friend whom you know is quite well off but who prefers to spend very little on travel food and entertainment to the point that they prefer to cut out restaurants or activities that you enjoy. Discussing budget limits and goals ahead of the trip can prevent a great deal of misunderstanding and conflict during the trip.

I’ve focused mostly on the financial budget here, but as you are considering this, it is also important to look at your time budget. Part 2 will focus more on time, so check out that post as well!

How close are you to having the savings you need for your trip? If you’re not there yet, what’s one small step you can take today toward making your dream a reality?