# Planning Finances for the Epic International Family Vacation
Every time my family plans a trip abroad, the mantra quickly becomes – “Don’t count the days. Make the days count!”
In our quest to experience the best, we keep planning for better hotels, better flight options, not-to-be-missed excursions, and even adding nearby popular tourist destinations/cities. When we visited Dubai last year, how could we not take our children to Warner Bros. & Ferrari World in Abu Dhabi?
With the increase in international travel costs, creating a separate and simple travel budget can keep money-related anxieties at bay. One can follow a 50:20:30 budget rule for the combined family income:
– 50% for Needs
– 20% for Savings
– 30% for Wants
Wants are discretionary expenses, and travel expenses are part of this discretionary budget. You can allocate approximately 10-15% of this bucket depending on your family size and interest. Don’t fret too much in a given year, as you can average out this expense over a few years (3-5 years) since travel expenses can vary depending on the destination.
For example, with a combined annual family income of INR 35 Lakhs, allocating 10% for 3-5 years gives a range of INR 10.5-17.5 Lakhs. With a higher income of INR 50 Lakhs annually, the range becomes INR 15-25 Lakhs.
Before embarking on your travels, remember these two bonus tips for frequent travelers:
– Don’t forget the travel insurance.
– Consider creating a separate travel fund and invest in safe and liquid debt mutual funds.
Create and stick to a plan that suits you best. Staying within limits gives a guilt-free planning experience. Happy Travelling!
### FAQ
### 1. How much should I allocate for travel expenses in my budget?
Depending on your family size and income, allocating 10-15% of your discretionary budget for travel expenses is recommended.
### 2. Should I consider travel insurance for international trips?
Yes, it is highly recommended to ensure you have travel insurance to cover unexpected events during your trip.
### 3. How can I save for travel expenses in advance?
Consider creating a separate travel fund and investing in safe and liquid debt mutual funds to save for your travel expenses.
### Conclusion
Planning an international family vacation can be an exciting experience, but it’s essential to plan your finances wisely to avoid any money-related stress during your trip. By following a budget rule and allocating a percentage of your income for travel expenses, you can enjoy guilt-free planning and make the most of your vacation. Remember to prioritize travel insurance and consider creating a separate travel fund for a smooth and enjoyable travel experience. Happy Travelling! ????
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