How to Plan an Amazing Vacation on a Budget — and Still Have Fun!

Vacations are something most of us look forward to all year long — but when you're on a budget, planning one can be challenging. 

The good news is that you don't have to spend a lot of money to make unforgettable memories. With these 10 tips, you can plan a fabulous vacation on just about any budget. 

1. Identify your budget 

It’s important to consider your budget before choosing your vacation destination. The amount you can comfortably spend will determine where you can go, what activities you can do, and how you’ll get there. 

• Determine your total budget. First, decide how much you can afford to spend on your vacation. Consider any savings or extra money you might earn before your trip (such as a work bonus or tax refund). 
• Break it down. Split your total budget into different categories. 
  • Travel: Flights, bus or train tickets, parking fees, and gas. 
  • Accommodations: Hotels, vacation rentals, or campgrounds. 
  • Food: Meals at restaurants, snacks, and groceries. 
  • Activities: Tickets for attractions, tours, and entertainment. 
  • Miscellaneous: Souvenirs, tips, and unexpected expenses. 
• Research costs. Look up average prices for each category and make realistic estimates. 
• Allocate funds. Decide how much you can comfortably spend in each category based on your research. The total amount should equal your overall vacation budget. 
• Track your spending. As you book and pay for different parts of the trip, keep a record of your expenses, and adjust your budget if necessary. 

Remember, the earlier you start planning and saving, the more time you will have to reach your overall savings goal. 

2. Choose affordable destinations 

Some destinations are naturally more budget-friendly than others. It’s generally more affordable to drive to a nearby destination than fly, so don’t discount destinations closer to home.

If you are visiting a place more than a day’s drive away, compare the cost of gas and overnight accommodations against plane ticket prices. In some cases, your regional airport might offer affordable direct flights to vacation-worthy cities. 

And yes, you can travel internationally on a budget if you think outside the box. For example, Portugal is considered a very affordable destination by European standards. It offers plenty of low-cost attractions and a national transportation system that makes it easy to get around on a backpacker’s budget. 

3. Travel during off-peak times 

If your schedule allows, plan your trip during the off-season. The off-season will vary depending on your destination. For example, the winter months are considered off-peak season for most beach vacations, but it’s peak travel season in Cancun and other seaside destinations closer to the equator. 

For family vacations, including popular amusement parks, peak season is generally in the summer and during spring break when school is out. Prefer a mountain getaway? Fall is a beautiful time of year to see the leaves change, but you’ll have to deal with extra traffic and crowds. 

Traveling during the shoulder season (the period between peak and off-peak seasons) can be a good compromise because it offers a nice balance of pleasant weather and affordable prices. 

4. Book flights and accommodations early 

Keep an eye out for deals and book your flights and accommodations well in advance. Websites like Skyscanner and Airbnb often offer discounts for early bookings. This is especially useful for beach vacations where popular spots can get pricey during peak season. 

5. Use travel rewards and loyalty programs 

Make the most of travel rewards programs and credit card points. Sign up for airline and hotel loyalty programs to earn points that can be redeemed for free flights and stays. It's a smart way to cut costs on your next vacation. 

6. Opt for alternative accommodations 

Hotels can be expensive, so consider alternatives like short-term vacation rentals, hostels, campgrounds, or even house-sitting. 

Hospitality exchange services provide unique opportunities to stay with locals all over the world — often in exchange for volunteering your time or labor. 

7. Prepare your meals 

Dining out can quickly drain your budget. If possible, book accommodations with a kitchen and cook some of your meals to cut down on food costs. 

When sampling the local cuisine, seek out eateries off the beaten path instead of tourist hotspots. You might even ask locals for their recommendations to find the best authentic cuisine. 

8. Research free or low-cost activities 

The best way to fill your itinerary without overspending is to research your destination beforehand to find hiking trails, fishing spots, national parks, historic sites, walking tours, and museums with free admission days. 

Public parks are another excellent option for free or low-cost entertainment. They often have playgrounds, picnic areas, and open spaces where you can relax and enjoy the outdoors. Some parks also host events such as concerts or movie screenings, adding more fun to your vacation without breaking the bank. 

9. Plan a weekend or day trip 

You don’t have to commit to a weeklong vacation to make memories. Depending on where you live, you could drive a couple of hours to spend a fun-filled day at the beach, an amusement park, or a u-pick farm. 

Maybe you only have enough PTO for a weekend getaway. Don’t let that stop you! Think of any nearby cities you’ve always wanted to visit and snag the opportunity. 

10. Travel with a group 

Traveling with several family or friends can significantly reduce costs, especially for beach and mountain vacations. Rental cabins and beach houses can be pricey for solo travelers, couples, and small families, but splitting the cost of a larger, multi-family accommodation can help everyone save money. 

You can even take it a step further and look for group discounts on attractions and activities. 

Start planning and saving early! 

Going on vacation might seem like too much of a luxury these days due to rising costs, but with a little forethought and creativity, you can enjoy an incredible trip that won’t break the bank. 

Vacation planning FAQs 

How far in advance should I book my trip? 

For the best deals, try to book flights and accommodations at least 3-6 months in advance. 

What are some affordable beach vacations? 

Some of the most budget-friendly beach vacations in the US include Myrtle Beach, South Carolina; South Haven, Michigan; Rehoboth Beach, Delaware; Grand Isle, Louisiana; Galveston, Texas; and Crescent City, California. 

What are some affordable family vacations? 

Top destinations chockfull of family-friendly attractions include Hershey, Pennsylvania; Pigeon Forge, Tennessee; Branson, Missouri; Yosemite National Park, California; Louisville, Kentucky; and Houston, Texas. 

What are some affordable winter vacations? 

Take advantage of off-season rates in Savannah, Georgia; New Orleans, Louisiana; Indian Rocks Beach, Florida; Palm Springs, California; Portland, Oregon; and Key West, Florida. 

What are some affordable mountain vacations? 

Head to the mountains and soak up nature in Mammoth Lakes, California; Jackson Hole, Wyoming; Gatlinburg, Tennessee; or the Poconos, Pennsylvania. 

What are the cheapest places to visit abroad? 

Budget-friendly international travel destinations include Mexico, Greece, Croatia, Peru, Tunisia, Bangladesh, Nicaragua, and Costa Rica.