Dodge these 6 sneaky travel budget blowers

Unless you’re one of the lucky travelers with a generous travel budget (and maybe even still) there are some sneaky travel budgeting mistakes many people don’t think of. Few things will spoil a vacation like blowing a budget: read on so you’ll be in the know.

Common Travel Budget Mistakes

While common, even seasoned travelers have made these mistakes. It’s safe to say pretty much everyone wants to save money on travel. Dodging these financial oopsies will free up a travel budget, making it easy to properly enjoy the trip.

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Travel Budget Mistake 1: Not accounting for time off work

This could be the biggest mistake people make with their travel budgeting process. I’ve done it myself unfortunately. For those that don’t have PTO or aren’t working while on the road, taking a trip means no income during that time.

Of course some employ “travel math”: thought gymnastics so it seems they aren’t reaaally spending any extra while traveling. While true to a small extent – some expenses aren’t doubled up – bills still have to be paid. There will be household expenses that don’t really change while you’re away, or possible additional ones like pet sitting.

The key is to be realistic and honest about ongoing expenses that will still exist even when away from home. Sure not buying groceries and saving a bit on utilities helps, but typically living expenses will still be a good 80-90% of the norm even while away.

Travel Budget Mistake 2: Exchanging Currency at the Airport

This won’t apply for domestic travelers, but it’s possibly the biggest money mistake international travelers make. And it’s not just travel newbies: some people just aren’t aware how expensive it is to change money at the airport exchange desks.

There are two good ways to avoid this travel budget destroyer. The first is to order currency with your local bank. Shop around and check it against the current official exchange rate. I keep up with global exchange rates using XE, which has an app and regular website.

In many destinations around the world it isn’t necessary to purchase currency in advance. If credit cards are widely accepted and ATM locations abound, just withdraw money at a bank ATM upon arriving.

When using a credit card, choose one that doesn’t charge extra for foreign transactions. If using a debit card, choose one that doesn’t charge those fees or foreign ATM fees. CapitalOne offers both in the form of their Venture cards and their 360 Checking.

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Travel Budget Mistake 3: Plain Old Bad Budgeting

It’s important to not just be realistic about individual spending habits, but also what things will actually cost in a travel destination. For example, I’ve personally learned that I should pad my dining out budget. I’ll cut back in other areas, but I’m loathe to be stingy with food.

There are an awful lot of unrealistic expectations being set about how “cheap” a travel destination is. Average costs for typical travel expenses like lodging, food, transportation, and sightseeing can vary significantly.

Keep in mind that prices will be higher in busy season in areas with high concentrations of tourists, or around special holidays. Ask others who have traveled to the same destination around the same time what prices were for common travel expenses. This is also a reminder to travel to lesser known destinations, or plan with extra care in famous travel destinations.

Travel Budget Mistake 4: Not getting travel insurance

I’ll be honest. I’ve traveled sans insurance up until very recently. And luckily, nothing has happened. However, it only takes one disaster to not just ruin a trip but potentially your life. Missed flights, natural disasters, illness, and injury can take years or a lifetime to recover from financially.

Many travel credit cards offer some protection for travel mishaps as long as the card was used for the travel purchase. This can include things like lost luggage, certain flight delays, and (my personal favorite) rental car insurance.

The insurance offered by car rental companies can really blow a travel transportation budget. Having it covered by my credit card instead is great!

Purchasing a travel insurance policy is a smart decision. Some cover trip cancellation or interruption only. Others include coverage for medical emergencies, whether illness or injury. Be sure to read through ALL the details of a policy thoroughly, Never make assumptions about what a travel insurance plan covers!

If you have private health insurance at home, check to see what they do (or do not) cover during travel. Depending on what is covered, you may only need to purchase travel insurance that covers trip incidents unrelated to your health.

Remember, the best travel insurance is the one you never have to use!

Travel Budget Mistake 5: Not Taking Photos

What does taking photos have to do with travel budgeting mistakes? I’m not talking about taking pretty photos while traveling. What this does mean is taking photos for record keeping purposes. It’s one of the most critical mistakes MANY travelers make.

Renting a car? Give yourself enough time to take copious amounts of photo and video at pick up and drop off. And keep them. For a LONG time! Fortunately I’ve never had to dispute claims of damage by a car company, but there are so many stories of travelers being charged for expensive rental car damages. They might not have caused it, but they can’t prove it either so it’s a huge mess.

Be sure to get a photo of the car with the license plate showing, and do a continuous walk through video as well. Be sure to check under the edges of the bumpers, and photograph the interior. Even the smallest scratch, ding, or tear should be documented. If it’s not noted on the rental contract, have them add any damages you notice before signing and leaving with the rental car.

Documentation also makes it far easier to dispute charges with your credit card company or travel insurance.

While not so much a concern with hotels, taking photo and video at your vacation lodging is another smart traveler move. Firstly, inspect on arrival. If anything is broken, damaged, or not working document it with photo/video AND send an email within the platform. When it’s time to check out, do the same right before leaving.

Taking photos gave me recourse when an AirBnB host left me a bad review claiming I left the apartment a mess. There had been some issues that were not well handled during my stay, so it was obviously retaliation. The apartment was spotless when I left, and since it was well documented I was able to get the bad review removed from my profile.

Travel Budget Mistake 6: Not having an emergency plan or fund

Emergencies, big and small, happen. Being unprepared is not only stressful, it can end up being expensive. The above mentioned travel insurance is a big part of not blowing a travel budget BUT it won’t cover all eventualities. Plus, safety is paramount and some people end up in unfortunate situations trying to save money rather than being safe.

Small travel emergencies might look like needing to take a taxi for safety reasons or replacing something essential not covered (or that requires waiting for reimbursement) by a travel insurance policy. Especially when it comes to safety, having an emergency fund allows you to listen to your gut and not your wallet.

Bigger emergencies might mean cutting a trip short and needing an emergency flight home (again, may or may not be covered by insurance), or to change hotels. While I don’t typically advocate credit cards that aren’t being paid off immediately, I DO strongly recommend having a credit card for serious emergencies. It’s better to be safe and have to pay off a couple thousand dollars than come to harm or worse.

How to create a smart travel budget

It’s actually pretty easy to save money on travel and craft a realistic travel budget. The two most important steps are research and flexibility.

• Plan ahead: nothing wrong with a last minute trip, but give yourself as much time as possible to put everything together, especially when heading to a new destination
• Stay flexible: it’s possible to snag sweet travel deals if you’re able to be flexible on when, where, and how you go
• Research thoroughly. Don’t blindly trust breathless highlight reels on TikTok or Instagram to plan travel. Every place has pros and cons, so educate yourself by looking for video series or blogs from experienced travelers to that destination.
• Be honest with yourself about what your must-haves are. Whether it’s a certain level of lodging or bucket list experience, add that to your budget.
• Pad your budget. Extra expenses WILL come up! Depending on how detailed your budget is to begin with, it’s wise to add anywhere from 10-20% to it. Worst case it gets spent, best case you don’t need it and it can go to your next trip!

What’s the most expensive travel budget mistake you’ve made? Share in the comments and help save a fellow traveler’s wallet!