Question

Does anyone have set vacation budgets? We've decided we're going to take a trip to Iceland and it will take about a year to save and about 10% of our income. I didn't think it was that expensive until I saw the 10% number. We're pretty responsible with our money and will have plenty of savings aisde from the 10% so I feel like I shouldn't feel guilty but I do. How does everyone determine how much they spend on vacation travel?  

Answer 1

This is doesn't answer your question at all – BUT I'd look at Scott's Cheap Flights if you are interested in going to Iceland. Because of them, I only paid $370 (total) RT on IcelandAir to go to London and Iceland together. IcelandAir does an extended layover trip where you're technically just flying from your destination to London and back, but they give you a 3-4 day layover in Iceland to boost the Iceland economy. Worth looking into!  

Comments

@caryl 2nd this, for international travel they can save hundreds and thousands of dollars.  

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@caryl do you have to pay a fee to be able to get those rates for Scott’s cheap flights?  

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@talipes I do pay for the paid newsletter ($39 a year or something like that), but I'm almost positive that I found my Iceland flight on their free newsletter. Scott's Cheap Flights doesn't sell the flight themselves or anything like that. They just compile cheap flights, mistake fares, etc and put it in a newsletter and direct you to use either Google Flights or Momondo to book your flight — they make their money by hopefully getting people to pay for their paid newsletter. Pretty neat tool, and the free newsletter has a ton of value.  

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Just signed up  

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@etamine travel pirates and google flights are great resources. Been able to get flights to Thailand for 450, Iceland ~400, philippines ~500.  

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I agree. We paid $500 a ticket round trip to Germany. Tickets normally $1200+.  

Answer 2

Travel is a huge part of my budget. I spend around 20% of my income every year. It’s a major priority for me. I’m healthy and able to travel the world now. So that’s what I’m going to do.  

Answer 3

I budget 1k a month for travel in a seperate savings acct that incurs zero fees and earns little interest. Budgeting, intuitively feels like bondage but quite the opposite is true

Answer 4

My partner and I have slightly different philosophies around vacation budgeting (he doesn't, I do) and one of the things we've done is to open up a joint account that is for our vacation savings. We put in a set monthly amount and if there is a bigger trip coming up we can increase the contribution.  

Answer 5

We set aside a little each month for the vacation fund along with car repair, house repair, and escrow for taxes and insurance. Makes budgeting easy that these are all fixed amounts each month.  

Comments

@manamanacle441 same. We usually have 4-5 different savings accounts we are contributing to on a monthly basis including vacation and gifts.  

Answer 6

It all comes down to where you’re at, where your priorities are and what your income is. Spending 10% or more of my income on travel period let alone on a single trip sounds outrageous to my ears, but it’s not my trip and it’s not my money. If you don’t have debt, are not putting the trip on credit and your retirement is on track? Go nuts and have a ball! It’s your money, spend it how you want.  

Answer 7

If you’re not in credit card debt and are responsible with credit cards, you should travel hack it.  

Answer 8

Iceland is amazing but pricey! Prepare but the best things are free. Check out Steam Valley!  

Answer 9

I save 10% of my paycheck every month for travel because it is very important to me. That said, most trips I do are paid for or subsidized in some way either through loyalty programs, credit cards points, or from employer reimbursement.  

Answer 10

So idk how much you know about Iceland, but I was there in 2017 and at least in Reykjavik, everything cost double, easily. So a simple meal out for 2 people at a sit down restaurant, both got burgers and fries, with water, and it was a $50 (US) bill. A beer at a bar might be. maybe about $12. Stuff like that. When you go, enjoy it, it's a fantastic place, but know that ahead of time. People told me it was expensive. but I certainly underestimated what that meant.  

Answer 11

Yes international travel is expensive, depending on your income 10% may not be a excessive by any means. I’d suggest booking flights a long time in advance using places like Expedia and then go for Airbnb accommodation with a kitchen so you don’t have to eat out for every meal. Usually a car rental can cut down costs further as you avoid having to take taxis and airport transfers and you can drive to a supermarket for supplies

Answer 12

We budget about 5k for the year. This allow us two cruises a year plus some small trips.