Want to Take a Bucket List Trip? Here’s How I’m Planning for Mine.
The further in advance we plan, the easier (and less painful it will feel) to save up for your vacation. Here’s how I’m planning for my next bucket list trip, step by step.
If taking a bucket list trip is top of your list this year or next, I’ve got you covered. While taking a trip is super exciting, the financial stress that often comes along with is not.
The good news is, the further in advance we plan, the easier (and less painful it will feel) to save up for your vacation.
Here’s how I’m planning for my next bucket list trip, step by step.
Step 1: Dream up your bucket list trip.
Studies show that planning (and dreaming up) our vacation actually provides the biggest boost to our happiness (even more so than the vacation itself!).
Take your time to dream up your ideal vacation and then talk with everyone you plan to travel with and get on the same page.
Here are some helpful questions to ask yourself and your travel buddies:
Where do you want to go and when?
What’s most important to you about this trip (i.e. what are your non-negotiables)?
What are some things you don’t care about and things you really do not want to do?
What are you thinking as far as budget? (We’ll get into this in detail in the next step but a general idea is important as well).
When you are talking with others, don’t skimp on the money conversation. It is SO important, even though it can feel awkward. The overall cost can determine where you’re going, for how long and where you stay.
I’m planning a summer trip to a town in Germany to visit where my family had a textile business before World War II. We had a Zoom call with everyone interested in going and went through this list of questions.
Step 2: Estimate the cost.
Now that we have a good idea of what the vacation will look like, we can put together an estimate of the cost. I use the word estimate because things can and will change as we have more information, but we need to start somewhere.
You can do this by hand or in a spreadsheet, whatever feels most comfortable to you. Here is a list of expenses to make sure to include:
Flights. You can check flight prices or use an estimate until it comes time to book. If your vacation includes multiple flights, make sure to include all of them in your budget. Don’t forget to include extra fees and expenses for anything you might not think to include in your travel budget. For example, if you need to take a car to the airport, add that in. Or if you know you will have to pay a fee to check your bags, include that too. These costs can add up!
Accommodations (the cost of where you plan to stay). Always include the cost of any additional taxes and fees (vs. just the per night cost of the room). I’m a big fan of staying in rental properties like those found on Vrbo. They make it easy to stockpile food basics at home (saving on one-off food costs), provide a lot more space for less cost than a hotel, and have an area for family and friends to hang out.
Getting around. You’ll want to allocate some budget for getting around once you are on your vacay. Will you be renting a car? If so, include that cost plus any cost for parking and gas. If you plan to take Ubers or Lyfts around, add those in too.
Activities. This is another place your dream brainstorm (from step 1) comes in handy. Are there activities you want to do while on your trip that cost money? This could be anything from tickets to a museum or opera to a boat ride. Add in an estimate for how much you’re willing to spend on activities.
Daily spending. It’s always important to take into account regular spending money. How much do you want to spend on eating out during the trip? Do you want to do any shopping while there? The good news is, you only have to include any amount that’s over (or in addition to) your typical spending since you’d be eating if you were home too.
Okay, that’s it! Then you just add it all up.
If the total looks a lot higher than you expected, I’m right there with you! Go back to your original conversation and dreaming session (from step 1). Are there things that are less important you can skip? Or maybe you can use points you’ve been accumulating the last two years to pay for flights (me!)?
Step 3: Set aside money in a travel fund.
Now it’s time to start saving. I use a separate online savings account to set aside money for travel. If you want some extra motivation and excitement, nickname the account with a reminder of the trip. For me that’s ‘Family Germany Trip 2023.’
Then, work backwards. If I want to have $5,000 saved by next summer, I’d have 15 months to save. That means I’d want to set aside $333 per month into my travel savings account. You can do this calculation per paycheck or per week as well.
Then make the transfer automatic. Believe me, I know from experience. It’s easy to forget to make the transfers or by the time you realize, there’s not enough money left to transfer over. Setting up a transfer to your travel fund that’s automatic is a way to ensure it’s going to happen and you’re paying yourself first!
Step 4: Update and check in along the way.
Once you’ve completed steps 1-3, you have a travel fund that’s growing on its own. Glorious. To ensure things continue to go as smoothly as possible, we want to do a few things:
Update your cost estimate. Update your plans as you have more information. Did you book your flight and it was $200 more than planned? Make sure your plan includes the most up-to-date numbers.
Adjust your transfers. When things change, especially if they cost more than you originally planned, reevaluate your travel fund transfer to make up the difference. Based on what you already have saved, and what you need to have saved, what should the transfer per paycheck or per month look like?
Use your travel funds. The point of having the travel fund is so that the money is there and waiting when you need it. Once you purchase something, like booking a flight or making a reservation at a hotel, transfer that amount from your travel fund to your checking account so you have the funds to pay for it.
There you have it! Follow these four steps to set yourself up financially for your bucket list trip. Bon voyage!