Dreaming of a break away but not sure how to afford it? In this guide, I set out 10 practical steps to help you budget, plan and save for travel in a realistic way.
Contents
- What is a Travel budget and Why You Need One
- First – Decide How Many Trips You Want to Take
- Travel Budget Tips: 10 Easy Steps to Save for a Trip
- Step 1: Work out How Much Your Trip(s) Will Cost
- Step 2 – Divide Your Travel Budget Into Monthly Savings
- Step 3 – Create a Separate Travel Savings Pot
- ️Step 4 – Find Savings Without Feeling Miserable
- Step 5 – Make Small, Realistic Lifestyle Changes
- Step 6 – Start a Side Hustle
- Step 7 – Find Ways to Reduce Your Travel Costs
- Step 8 – Watch Out for Hidden Travel Costs
- Step 9 – Track Your Progress & Stay Motivated
- Step 10 – Stay Flexible – Life Happens
- A Little Encouragement
- Related Posts
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Travel can seem out of reach when everyday expenses keep adding up – or unexpected things happen like a flat tyre or a leaky roof. You end up feeling like that elderly couple in Disney’s ‘Up!’ But with a simple travel budget and a realistic plan, that dream trip really can happen.
In this guide, I walk you through how to save for a trip step-by-step, using small changes that add up over time. No extreme cutbacks (although some might help!), no guilt – just practical budgeting tips that work in real life and sprinkles of motivation to keep you going.
What is a Travel budget and Why You Need One
A travel budget is simply a plan for:
- How much your trip(s) will cost
- How much you can save each month
- How long it will take you to get there
It turns ” I wish I could go on holiday” into “If I save £120 a month, I can book flights in June and travel in October.”
Suddenly the goal feels real and motivating.
I started budgeting for travel when my children were small. I wanted to take them to Disneyland so I set up a savings account for our dream trip. It took me a whole year to get there but it was worth the wait.
Creating a travel budget is the first step to finally booking that trip you’ve been dreaming about. I’ve been saving for a bucket-list 50th birthday trip for years and we’re almost there!
First – Decide How Many Trips You Want to Take
Before you start planning the details, it helps to step back and look at the bigger picture. Some people plan one main holiday a year, while others prefer a few shorter breaks or weekend trips.
Both approaches are completely fine – your travel budget just needs to match your style.
Option 1 – One Main Trip
If you usually take one big holiday, create a budget just for that trip.
You’ll total up the costs, divide by the months until you travel, and save towards that single goal.
Option 2 – A Few Trips Across the Year
If you prefer to spread your travels out, it can help to set a yearly travel budget instead.
For example:
- You make a yearly budget (income and outgoings) and decide you can afford £2,400 a year on travel
- That works out at £200 a month saved into your travel pot
- You might divide it like this: Spring city break = £500, Summer Holiday = £1,400, Autumn Break = £500
We prefer to take a summer holiday, a spring weekend break and an autumn weekend break. Travelling off-peak really helps with costs.
This yearly travel budget method keeps everything simple, flexible and guilt-free – you always know what you can afford, without guessing or overspending.
Once you’ve chosen which option fits you best, you’re ready to move onto the practical part: how to save for a trip and make that budget work.
Travel Budget Tips: 10 Easy Steps to Save for a Trip
Step 1: Work out How Much Your Trip(s) Will Cost
This is the reverse-budget method: start with the goal, then work backwards.
Create a rough estimate for:
- Flights
- Accommodation
- Food and Drink
- Activities
- Transport: car hire, local transport, taxis
- Travel insurance
- Airport parking, transfers
- A buffer for unexpected costs
Add it up and you’ve got your total travel budget.
✨ Top Tip: Consider travelling during shoulder season to save money.
Step 2 – Divide Your Travel Budget Into Monthly Savings
Work out:
- ️ How many months until you want to travel?
- ️ Total trip cost ÷ months = monthly savings target
Example:
- Total trip cost: £1,800
- Time until travel: 10 months
- Monthly target: £180
That’s your “how to save for a trip” plan in one simple number.
If that number feels impossible, don’t panic – tweak the date, shorten the trip, or choose a cheaper destination. You still get the holiday – just in a way that fits real life.
Step 3 – Create a Separate Travel Savings Pot
People save better when the money is out of sight, out of mind.
Set up:
✔️ a dedicated savings pot
✔️ named something inspiring like “Menorca 2026” or “Italy Family Trip”
✔️optional: automate a payment straight after payday
This keeps your travel budget organised and stops you dipping into it accidentally. My 50th savings are in an account that I can’t touch so there’s no chance of me spending it on anything else.
️Step 4 – Find Savings Without Feeling Miserable
This is where you need to be realistic about how many sacrifices you can tolerate – don’t cut out everything fun. That isn’t sustainable.
For me travel takes priority and I do sacrifice many luxuries so I can afford it but I know this isn’t for everyone.
Instead, look for painless swaps:
- Takeaway coffee → 2x weekly instead of 5x – consider taking a flask of coffee. This swap could easily save £12 a week!
- Packed lunch → even 3 days a week helps
- Review subscriptions you forgot about or aren’t making use of. We checked my daughter’s phone subscriptions and she was paying £20 a month for apps she’d forgotten about!
- Meal-plan to reduce food waste. Beans on toast once a week saves a fortune!
- Switch energy/tariffs where possible
- Swap to lower cost brands
Even £3-£5 a day adds up fast – that’s £90-£150 a month straight into your travel fund.
And keep one or two treats – budgeting shouldn’t feel like punishment.
Step 5 – Make Small, Realistic Lifestyle Changes
Reduce – don’t eliminate – things like takeaways and impulse buys.
To be honest, we buy a takeaway about once a year, we rarely eat out and I can’t remember the last time I bought clothes. But I know this isn’t for everyone.
However, it does make sense to tot up how much you’re actually spending on luxuries. Small changes – reducing – not eliminating, can save a small fortune.
Step 6 – Start a Side Hustle
Building a side income, can help enormously. For me, it’s selling Christmas Trees and I’m seriously considering a dog-sitting business. I have creative friends who make things to sell on Etsy. One has opened a store on Vinted selling ‘charity find’ clothes.
Think carefully – do you have a talent or resource you could earn an extra income from?
Step 7 – Find Ways to Reduce Your Travel Costs
If you’re saving cash and reducing your travel budget – you’ll get there quicker!
Ways to lower your travel budget
- Travel midweek if you can
- Be flexible on airports
- Choose apartments with kitchens
- Look for free/low-cost attractions
- Use public transport instead of taxis
- Sign up for flight alerts
✨ Blog to Read: How to Book a Cheap Family Holiday: 25 Ways to Save Money
Other Ideas to Consider:
- Using cash back companies like TopCashback
- Spending points on travel. (We collect Avios points with Amex, which has paid for our flights for our next break away.)
Step 8 – Watch Out for Hidden Travel Costs
⚠️ Common Travel Budget Mistakes to Avoid
- Forgetting hidden costs (baggage fees, ATM charges, data roaming)
- Not budgeting for airport food / drinks
- Leaving insurance until the last minute
- Booking before checking total costs
Fixing these alone can save £100s.
Step 9 – Track Your Progress & Stay Motivated
A few simple ideas:
- Colour in a savings thermometer with a picture of your destination at the top!
- Track savings on a spreadsheet
- Celebrate milestones: Flight costs, Hotel costs,
Seeing your travel budget growing makes the holiday feel closer – which keeps you going on the dull days.
Step 10 – Stay Flexible – Life Happens
If something changes, adjust the plan – not the dream. Things happen: but don’t give up – extend the time frame, change a few details.
A Little Encouragement
If money’s tight, it’s easy to feel like travel is “for other people”. But small, consistent steps really do add up. Whether it’s a weekend city break or a two-week sunshine holiday, a simple travel budget gives you control – and a plan.
So next time you wonder how to save for a trip, remember:
- 👉 Start with the goal
- 👉 Break it into months
- 👉 Make tiny daily choices
- 👉 Watch it grow
Your future self will be sitting somewhere sunny saying thank you! ☺️
️Do you have any travel budget tips? Let me know in the comments👇
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