How to Determine your Budget for your EuroTrip in 5 easy steps!

The dreaded money conversation has to arise at some point... no one likes to discuss money, worry about it, or really even think about the damage a vacation will cost but there really is no reason to worry.

I can help you not only figure out how much you will be spending on your trip, but give you a piece of mind to know you will not be in crazy debt when you get back. 

We are already knee deep into planning! See what we have got so far:

- Choosing your destinations - Check it out here!

- Spreadsheets galore - Check it out here!

- Planning with a Friend - Check it out here!

- Determining your budget - Scroll down silly!

- Buying Airplane Tickets (March 31st)

- What to Pack (April 4th)

- Trains, Planes, and Automobiles (April 9th)

- Where to stay? Read Here!

- One month to go! (April 21st)

- Itinerary or wing it? (April 24th)

1. Know your income: First you must know how much you make each month to be able to calculate how much you are able to spend on this vacation. Budgeting is always based on how much you can save each month up to your vacation, and making sure you are good about stashing it away in your savings account or piggy bank where you will not touch it until you are ready to get on the plane. For example: If you make $2000 a month, and subtract rent, utilities, car, (costs that do not change each month) etc. and you have $500 leftover for food and fun, (if you coupon clip and dont eat out) you can allocate $200 for food and $300 for savings. This way, if you plan on taking your vacation in 6 months, you will have saved $1800! It does not seem like much, but this will make you understand what is WAY over budget, or what you can afford. Same concept goes for after your vacation: If you save $1800, that can be used as cash on your vacation, and if you continue to save after, you can pay off credit card payments like the airplane ticket, hotel stays, etc.

2. Airplane Ticket- Naturally the most expensive part of your trip is flying, but it doesnt have to be a break the bank situation. The key to a budget friendly vacation is being flexible. Flight costs change hourly, so it is hard to find the perfect deal,  but if you are willing to adjust, maybe fly into a different airport, go in August instead of May, extend the trip by a day, etc, you could save hundreds! My cheapest flight (and I am very proud of it!) was $250 from Orlando, FL to Paris, France when I really wanted Miami, FL to Nuremberg, Germany. Because I was willing to take the train from Paris to Nuremberg (50€) I saved close to $600! This will make your budget work alot more in your favor and this can be paid off in chunks using a credit card in comparison to meals, attractions, and souvenirs on your trip.

3. Rough plan your vacation: How many days will you be in Europe? Will you be going to alot of touristy places or just sightseeing? Do you LOVE food like me or are satisfied by the free continental breakfast and some street food? Do you have back problems and need an orthopedic bed or will a tent and sleeping bag suffice? Will you want first class on a plane to go from city to city or will a flexfare bus work just fine? All of these will determine what amount of money can be allocated where. Then comes fairly simple math: Savings minus flight costs divided by number of days (not nights). Using my example above, I have $1800 - $500 flight = $1300 for the entire trip. I want to spend 7 days in Europe which brings my daily total to $180 (always round down so you have wiggle room in the end). $180 is for food, transportation, accommodation, and tourist stuff. I have decided I really love food and want most of my money to go to enjoying local cuisine, and I dont care what type of transportation I take, as long as I have a decent bed to sleep on. My proposed cut of the money is $80 for food, $30 for transportation, $45 for accommodation, leaving $25 for tours/souvenirs/entrance fees each day. You can of course cut this a billion different ways but it depends on your preferences. When you have an idea of what you can spend on each, your research later will become much easier.

4. Finalizing your plans. Create a more in depth plan of action or itinerary and begin booking transportation, hotels/hostels/airbnb, restaurant reservations, etc and marking the cost next to it. Keeping a record of where your money is going will put you at ease when you get closer to your vacation knowing the hard part is already taken care of. This will also help with knowing where you have some room to grow or give yourself more wiggle room depending on if you think you will want more tours one day but just sight see the next and can move money around that way. 

5. Last but no least - taking your budget with you. Many pieces of your vacation can be placed on a credit card and electronically monitored and kept track of, but especially in Europe, cash is the only way to pay in many places. My favorite is the envelope system, where you have an envelope for each day with the amount of money you are allowed to spend separated for you already. Really OCD? Separate the daily amount into multiple envelopes, one for food, one for gifts, one for transportation, etc. TIP: Do not make your life too difficult with too many envelopes and then you end up fumbling in public with a handful of cash. Keep your money on you in either a money belt or hidden pocket, but easily accessible. Do not keep all of your money in one place either! God forbid your purse gets stolen, you do not want to be left high and dry without any money or identification! If you have money separated into different locations, if something gets lost or taken, you still have some cash to get you to an ATM or Police Station.