Money and insurance
Working out a travel budget: the method that does not miss
Flights and hotel are half of it. How to estimate the other half, which line always gets forgotten and how much slack to leave.
Claudia Ferrán 6 min Photo by Neven Krcmarek on Unsplash Almost every travel budget goes wrong in the same place: you count what you book and not what you spend. Flights and accommodation get written down precisely, and the rest gets estimated with optimism.
The six lines
| Line | How to estimate it |
|---|---|
| Long-haul transport | Real price with luggage and seats included |
| Accommodation | With tourist taxes, which are paid separately |
| Local transport | Airport transfers and daily journeys |
| Food | An average day's cost times the days, with no optimism |
| Activities and tickets | The ones you already know you will do |
| Fixed costs of the trip | Insurance, permits, data and adaptors |
That last row is the one that never appears and always gets paid: insurance, the entry permit, the data plan and the four things you have to buy before you leave.
The average day trick
Rather than estimating line by line, estimate a full day of spending at the destination: breakfast, lunch, dinner, transport and one ticket. Multiply it by the days and add 20%. That number is far closer to reality than any line-by-line sum.
A travel budget with no slack is not a budget: it is a wish list.
The slack
- 15% for ordinary surprises: an unplanned taxi, a pricier ticket, a pharmacy.
- And a separate reserve for the serious stuff: an early flight home or an extra hotel night.
- That reserve is not touched during the trip, which is why it is best kept in another account or on another card.
And keeping track without souring the trip
Writing down every coffee ruins a holiday. Checking your balance every two or three days is enough to correct course in time, and that is all it takes.
For the data line, which is the easiest one to get wrong, see how much data you really use on a trip.
Frequently asked questions
How do I work out a travel budget?
Estimate a full day of spending at the destination, multiply by the days and add 20%. Then add long-haul transport, accommodation and the fixed costs of the trip.
Which line always gets forgotten?
The fixed ones: insurance, entry permits, the data plan and the purchases before you leave. Plus the accommodation's tourist taxes.
How much slack should I leave?
15% for ordinary surprises and a separate, untouchable reserve for the serious stuff.
Do I have to write down every expense?
You do not: checking your balance every two or three days is enough to correct course in time.
