How to Take a Luxury Vacation on a Budget

With the current crunch of the economy, taking a luxury vacation might seem impossible. But, this is just not true! No matter what your financial constraints are, there are a few things that you can do to create a vacation that your family will not soon forget.

A “luxury vacation” is really more about what it means to you than each detail of the trip. There are ways you can cut a few corners to give you and your family the vacation they want without an exorbitant price tag. 

Focus on What’s Important

Everyone has their own idea of what true “luxury” is. Determine what part of your vacation is the most important to you and focus your time and money in that area. Ask each family member what their idea of a “perfect vacation” is and make sure you allot a certain amount of money for that particular aspect of your trip.

Just as you focus on particular areas, you should determine what areas are simply not all that important to you and your family. These are the areas that you can easily cut back on or completely eliminate and save a bundle of money.

A few key areas that you can focus on focusing on or eliminating:

- Food. Is gourmet or specially prepared cuisine at the top of your list of great things? If not, focus on low cost meal or renting sleeping quarters with a kitchen to prepare the food yourself.

- Transportation. If you are renting a car, rent a smaller car. You can also call your credit card company and ask if they offer “loss and damage” coverage. If so, you can waive your car rental insurance fees and save $10-$15 a day.

- Hotel. If you plan to just sleep in your hotel, this is an easy area to cut back on since you won’t be using it much. Also, consider renting a home from a local, it is usually cheaper than a hotel.

- Activities. Spend money on the places that really are important and cross the other “non essentials” from your list. Spend time where you know you will make the best memories.

- Travel. Buying discounted plane tickets is a great way to save money but the airline’s ability to bump your flight time also increases with this “deal.” Determine if time or price is more important and make your reservations accordingly.

Start Saving Today

The time to start financing your family’s dream vacation starts long before you ever take it. Make a habit of regularly saving for your family vacation. Work a fixed amount into your monthly budget and continually add to it so there is money available when the time rolls around.

Do not fall into the trap of using credit to finance your trip. While this might seem like an easy fix initially, it becomes difficult to pay it off. Then you quickly watch your “dream vacation” turn into a financial nightmare. Now, you are not only paying for the trip itself, but also related financing fees. Suddenly traveling on a budget flies out the window and you are faced with debt.

Not only is saving today a great idea to avoid the credit trap, you can also make easy changes all year round that creates more money for vacations down the road. For example, if you eat out every day at lunch, take your lunch two days a week and put that lunch money towards your future vacation.


Reconsider the Destination

While vacations like Disney World or a Caribbean cruise are popular family vacations, they also come with a hefty price tag. Their popularity gives them the ability to charge outrageous prices on the simplest of conveniences.

Consider visiting a destination that most people don’t think of when they dream up a great vacation. Visit state websites in the travel section and see what suggestions they offer. These type of hidden vacation gems offer more affordable luxurious options at a dramatically reduced price. While you might not be able to afford the “finer things” on a higher end vacation, those same things may be well within your reach off the beaten path.

Visit During the Off Season

Prices reflect the demand of luxury vacation spots. During times like summer and Christmas vacation, you can expect your ideal vacation spot to be willing and ready to charge you a much higher fee because they know that many will pay it for the convenience of this time slot.

Consider taking a vacation during a non-peak time. Times like Easter or Thanksgiving might give your family a special time to get away without breaking the bank.

Vacations are an important part of life and family traditions. A luxury vacation is not completely out of your reach if you cut a few corners to spend your money and efforts on the things that are truly important and you will create a vacation that you will not soon forget.