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Planning a vacation

You work hard, you deserve a break. But don’t let your vacation break the bank. This checklist will help you plan ahead and prepare.

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In This Checklist

Eight steps to take when planning a vacation:

Set a budget and save up cash.
Talk about your budget with your travel companion(s).
Look for deals like packages, off-season rates and discounted airfare.
Use travel guides to plan ahead.
Watch out for hidden extras.
Know what you can and can't do without cash.
Make sure your home is secure.

Eight steps to take when planning an international trip:

Budget for extra fees.
Update your passport and check if you need a visa.
Check the U.S. State Department for info on your destination.
Update your vaccinations.
Make copies of your documents and credit cards.
Check your cell phone provider for international rates.
Watch out for credit card fees.
Have adequate insurance.

Eight steps to take when planning a vacation

1. Set a budget and save up the cash.

Vacations are something you save up and pay for, not something you borrow for. It doesn't make sense to run up credit card debt to take a vacation, because the interest you'll pay just makes the whole thing cost more. Vacations are open-ended in that you can spend an unlimited amount on them, so everyone sets at least a rough budget.

See also: Save for a goal tool

2. Talk about your budget with your travel companion(s).

Make sure your travel companions have the same budget in mind that you do. If not, agree in advance that you'll part ways at times so you can each do your own thing. It's also a good idea to agree about how you'll split expenses when that comes up — whether that means a car repair on a huge road trip or just splitting the check at dinner.

3. Look for deals like packages, off-season rates and discounted airfare

If it works with your schedule, try vacationing during odd times. Traveling slightly off-peak, you can end up with better deals, shorter lines and hosts that are happy to see you. If you'll be flying, watch for deals well in advance of your vacation date, and learn the travel days that have the best fares. There are many websites created to show you the range of fares for a given destination and how they vary by day of the week. If you have them, use airline miles and book well in advance, which often means needing to use fewer points.

If you have a lot of destinations in mind, look into transportation deals like special flight packages, unlimited rail passes or city passes that give you a flat rate for public transportation. For big trips, getting around is probably going to be your biggest expense so these can help a lot. To find affordable, safe travel options — like discount packages that include transportation — try out different budget travel websites like:

Travel discount sites:

Travel Zoo: www.travelzoo.com
Living Social Escapes: escapes.livingsocial.com
Groupon Getaways: www.groupon.com/getaways
SniqueAway: www.sniqueaway.com

Travel booking sites:

4. Use travel guides to plan ahead.

Pick a travel guide that matches your lifestyle. Lonely Planet is geared towards younger travelers. Rick Steves' Guides and Let's Go are budget-conscious. Frommer's and Guide Michelin are for those who want to spend a bit more. You'll get a sense of who they are written for by thumbing through each of them (try the one for a familiar place like your home town, if there is one).

Even if you follow a travel guide, leave room for exploring. Some of your best travel memories will come from finding restaurants and places to stay that aren't in any guidebook, and you will find well-reviewed places that have turned into tourist traps.

Here's a list of travel guides with options for the budget-conscious:

Budget Travel magazine: www.budgettravel.com
The Travel Channel places and trips guides: www.travelchannel.com/Places_Trips
Rick Steves' Europe: www.ricksteves.com
Let's Go: www.letsgo.com
Fodor's: www.fodors.com
Lonely Planet: www.lonelyplanet.com

5. Watch out for hidden extras.

If you're going on a cruise or doing an all-inclusive package at a resort, make sure you know exactly what's included and what you'll have to pay extra for. If you don't know the details, you may end up dropping a lot of money on food, drink or activities you thought were included.

6. Know what you can and can't do with cash.

If you don't have a credit card, figure out how you'll pay for things and whether you'll be limited in your activities. ATM machines don't always work when you get off-the-beaten-path and some establishments only accept cash.

Of course, there are things you are going to have to do with credit — booking hotel rooms and renting cars, for example. When you book those, pay off your credit card as quickly as possible so you don't get stuck paying interest, especially if you've charged anything for other people in your travel group. Why should you get stuck paying interest on their trip?

See also: Cost of credit tool

7. Make sure your home is secure.

Consider simple security aids if you're concerned with your home being burglarized while you're gone. A $10 timer on a lamp can make a home look occupied and can be found at any hardware store. Tell the post office to hold your mail and do the same with any newspapers. Have a friend check in every few days.

Eight steps to take when planning an international trip

1. Budget for extra fees.

If you're traveling internationally, taxes and other fees can add up to several hundred dollars. On a cruise, you might have to pay port taxes and other fees.

See also: Save for a goal tool

2. Update your passport and check if you need a visa.

There's nothing worse then arriving at the airport and realizing that your passport has expired or you needed a visa for permission to enter the country you're traveling to. Together these can cost a few hundred dollars, so make sure you've budgeted for that expense. To be on the safe side, do this a few months before you travel.

3. Check the U.S. State Department for info on your destination.

If you're traveling overseas, it's always a good idea to check the U.S. State Department website for information on the country you are visiting:

State Department: travel.state.gov

The website gives you information about the current social, political, economic, health and safety conditions on the country — as well as specific warnings for U.S. travelers.

If you're traveling someplace a little more risky, it's always a good idea to check in with the U.S. Embassy when you get there to register that you're in the country. That way, if there's a social or political crisis, a natural disaster or another risky event, they'll know to look for you and be able to help you. Also check in if you're going to be doing risky activities — like mountain climbing, trekking or camping in hard-to-get-to locations.

4. Update your vaccinations.

Depending on where you are going, you might need special vaccinations. You can check with the State Department at travel.state.gov for specific guidelines. If you don't have health insurance, consider getting it. You don't want to be stuck with the cost of health care if you get hurt or sick.

5. Make copies of your documents and credit cards.

Write down key contact numbers for your credit cards, bank and anyone else you might need to call if your wallet is stolen — this info can be hard to track down once you're far from home. Keep it in your luggage or someplace other than your wallet, so you have it handy. If your wallet is lost or stolen, report it immediately to avoid fraud.

It's also a good idea to keep your passport and identification cards separated from your wallet and someplace safe — like a money belt or around on a lanyard you wear around your neck. Copy your passport and identification cards and keep those copies in your luggage. Also leave a set of those documents at home with someone you trust. That way if anything happens to your documents, you at least have copies that you can refer to.

See also: Protect yourself

6. Check if your auto insurance coverage is international.

If you are driving your own car out of the United States even briefly, make sure you get coverage so you don't end up in a bad legal situation over a fender-bender. The typical U.S. insurance policy doesn't cover you outside of the country.

See also: Car insurance

7. Watch out for credit card fees.

Get very detailed information about how your debit card or credit card will work in the country you're visiting, and what exchange fees you'll pay. Typically it's a percentage of the transaction, and the rates vary quite a bit by card and issuing bank.

In some countries or cities you visit, like small towns or rural villages, your credit card may not work. It's always good to have cash on hand. Because of foreign exchange fees, added credit card charges and ATM withdrawal fees, you may also want to consider carrying a few Travelers Cheques (American Express or Visa) — depending on where you're going. You can get these through a credit union (usually for free), or generally through a bank.

See also: Credit cards

8. Have adequate insurance.

Before you travel, check with your health insurance provider to see how you're covered overseas. If you plan to drive while traveling, check with your auto insurance company and your credit card company also. Sometimes the card you use to rent the car has some added coverage. If you don't have international health coverage and you're traveling with any sort of risk, consider getting travel insurance. If you don't have international auto coverage, you may want to get it from the car rental company.