How to Plan a Dream Vacation on a Budget: My Step-by-Step Process
Want to go to Europe or Hawaii? Or maybe even Disneyland? Believe it or not, these dream destinations are completely within reach without having to break the bank. Let me show you how!
My husband is really into the NFL and it has been his dream for years to go to an NFL game. We decided in the 2023 season that we were going to go to his first game ever, and within 3 months we were able to go to the Jets vs. Chiefs game! And thanks to strategic budgeting and planning, we turned it into a full vacation, rather than an outing—without overspending.
In this post, I’ll walk you through the exact steps we used so you can plan your dream vacation on a budget too.
Step 1: Set a Realistic Budget
Why It Matters: Having a budget will help prevent overspending by setting clear financial boundaries, allowing you to plan a trip that fits your financial situation, and ensuring you can enjoy your vacation without the stress of unexpected costs or financial strain when you return home.
How to Do It:
Determine your total trip cost. Don’t just throw out an estimated number and call it good.
Look at a few different hotel or airbnb options,
average flight prices,
estimated food costs for the location,
transportation prices if needed (car rental, bus pass, train ticket, etc.),
and entertainment costs (excursions, park tickets, souvenirs, etc.).
I suggest rounding up a little more to give yourself a little breathing room while you’re on vacation (it’s better to over-save than overspend!)
For example, If average costs of flights are around $450, round up to $500, and a week stay at a hotel is $1,225, round up to $1,300. Then add those numbers up at the end.
Step 2: Be Strategic with Travel Costs
Why It Matters: Flights and transportation can be major expenses. You can save a lot of money by comparing prices between different airlines, and also looking up deals for car rentals. It may even be worth your while to just use Uber to get around instead of renting a car!
How to Save on Travel:
Use fare comparison websites
Skyscanner is a wonderful tool that allows you to the cheapest prices for flights going to your dream destination. It’s super handy because it helps you compare many different flights all in one place. You can also sign up to be notified of lower prices (by email).
Hopper is another great tool that will help you find the best prices to hotels in your dream destination. You can apply filters to help you find the best hotels for the price you can afford.
Book flights on budget airlines or with points/miles.
This is HUGE. I highly recommend creating a membership with your favorite airlines and hotels. They are completely free and when you book through their site, you will stack points and allow you to fly or stay at hotels for nearly free in the future!
BONUS: If you apply for credit cards you will gain points up to 12x faster depending on the credit card!
Be flexible with dates and airports.
If you can, be flexible on your dates of travel and browse to see what time seems to be the least expensive. This really only applies to airplanes but sometimes hotels will have sales or if they’re not getting enough business in a season they’ll automatically discount rooms (which you’ll see beforehand).
It may sound intimidating at first but it may be cheaper for you to fly out of a different city than your hometown, so you may consider creating your own round trip flight.
For example, SLC airport sometimes has more expensive flights to a location than the LAX airport (this can often be the case when flying to Hawaii). Do some research and see if flying out of another airport will be cheaper (and don’t forget to add the price of flying to a different airport).
Also not being picky on your airline can save you lots of money. I’m not going to recommend flying with sketchy airlines at all - your safety is much more important than saving money - but there are some airlines that fly cheaper to certain areas.
Southwest is a cheaper airline and usually has the best deals for flying anywhere in the US (including Hawaii!).
FlyingBlue (AirFrance and KLM) typically have the best deals for flying to Europe.
Other Tips:
Use public transport or walk to explore once you arrive. It may be worth finding a place to stay that is closer to the location of the activities.
When my husband and I went to the Jets vs Chiefs game in New Jersey we decided to find an Airbnb that was closer to the game. However, we were only there one day and the rest of the vacation was spent in NYC. We spent more money on transportation getting from New Jersey to the City than we should’ve because we didn’t plan right!
Rent bikes or scooters for a fun, affordable way to get around.
This was something we did right in our NYC trip. They have Citibikes available to rent (either per day or per hour depending on your preference) and it was a much better way to get around since the traffic in NYC is crazy, and it was so much more affordable than getting an Uber or Lyft driver. Plus it was a lot of fun!
Step 3: Find Affordable Accommodations
Options to Consider:
Using credit card points is another great way to save on hotel and airline expenses.
Points are worth more than dollars, so you can save hundreds on hotel bookings and airfare when you book with points!
I recommend using Chase Sapphire Reserve. This is the best beginner card and points are flexible - meaning you can use them through many different hotels and airlines!
Consider accommodations with kitchens to save on meals.
Booking with Airbnb or VRBO usually has the cheapest stay options with a kitchen included. But make sure the kitchen is a full kitchen!
If booking a hotel instead, do a quick calculation to see if you’ll save by getting a hotel room with a kitchen (don’t forget to calculate your food items) vs. no kitchen and eating out.
You can also save money here by buying quick, on-the-go breakfasts in bulk (muffins, protein bars, fruits/veggies) or even pack some food in your carry-on (as long as they meet guidelines;)).
Pro Tip: Look for bundle deals on travel sites that include hotels and flights. It’s worth looking to see if they’ll end up cheaper than booking everything separately. Sometimes it works and sometimes it doesn’t!
Step 4: Plan Budget-Friendly Activities
Free or Low-Cost Options:
Explore beaches, parks, hiking trails.
Visit free museums or attend cultural events.
Do a quick search on Google and find free events or ideas of what to do in the location for free.
Check for city tourism passes that offer discounts on attractions.
We went to San Francisco last year and found that using a Go City pass was our cheapest option for our activities budget.
Pro Tip: Book popular activities in advance to secure discounts and avoid overpaying (this is especially true when planning cruises!).
Step 5: Save on Food Costs
Tips for Eating Well on a Budget:
Cook some of your meals, especially breakfast.
It also can be worth booking a hotel that serves complimentary breakfasts!
Research affordable local restaurants or street food.
Make an organized list on your phone so that you know what options you have for eating when you’re at a specific location.
Pack snacks and reusable water bottles for outings.
Snacks with high protein can go a long way!
Pro Tip: Splurge on one memorable meal to make your trip special without overspending:)
Step 6: Use Smart Travel Hacks
Use travel credit cards to earn points for future trips.
As mentioned before, signing up for different credit cards with points is an excellent way to travel to your dream destinations for super cheap (sometimes you only have to pay for taxes which can be as low as about $6 per person!)
Sign up for airline and hotel loyalty programs.
Combining this with using credit card points will be a game changer for your vacation strategy. You will be earning points on points and you’ll either be able to travel more, or take more luxury vacations!
Track expenses and stick to your budget.
I have my own budget tracker that I’ve made that I LOVE. It helps me keep track of my budget, expenses, and financial goals. You can use it on your phone too which is super convenient!
Pro Tip: Be on the lookout for flash sales or last-minute deals.
If you live in Salt Lake City, Provo, or Las Vegas then I highly suggest you sign up for Flights From Home! They find and share the best deals on flights going out of these three airports.
You can also use Google Flights, Skyscanner, Kayak, or Hopper
Step 7: Pack Smart to Avoid Extra Costs
Tips:
Learn how to pack in carry ons to avoid having to check a bag.
If you can’t fit everything into a carry on then do your best to pack light! Pack heavy things into a carry on (of yours or whoever you’re traveling with, if possible) to save on carry on pricing.
Sometimes rolling your clothes will help you fit more items in your carry on.
Put socks or other small items in shoe openings to use up every inch possible!
Check and see if the hotel or place you’re staying at provides towels - they usually do!
Step 8: Reflect and Adjust for Future Trips
Why It Matters: I can’t tell you enough how much my husband and I have learned on our vacations in the seemingly small amount of time we’ve been together. After, or sometimes during, each trip we can’t help but reflect on how we could’ve done better, where we could’ve saved money, and what we’ll remember for next time. This has helped us to save more and stress less with each trip.
How to Do It:
Take a look at your trip and see what things you could’ve saved money on.
Staying in a more convenient location (like my New Jersey/New York trip example).
Making meals on vacation or packing breakfasts/lunches (this saved us a lot of money on our San Francisco trip vs. New York trip where we ate out for every meal).
Looking into reviews for excursions/activities (we regretted an excursion we once took on a cruise. We could’ve done more research on the excursion to fully know what to expect. We went on the cruise with my family and they took a different excursion which seemed 1000% better than ours, AND it was less expensive).
Keep a list of favorite budget-friendly travel tips for next time.
Keep it handy for when you plan your next vacation!
Your Dream Vacation Awaits
Key Takeaways:
Set a realistic budget and stick to it. Eat out less, maybe splurge a little less, and keep that budget in mind!
Be strategic with flights, accommodations, and activities to save big.
Use travel hacks like loyalty programs and credit card points.
Reflect on each trip to improve your future travel plans.
You Can Do This!
Dream vacations don’t have to stay dreams. With a little planning, you can turn your travel goals into reality—no matter your budget.
What’s Your Dream Destination?
Share it in the comments below! I’d love to know where you want to go next. Don’t forget to download my free Budget Tracker to start planning your trip today—it’s the perfect tool to help you stay on track and make your vacation stress-free.