This was a post response for a newsletter reader question back in June 2014. I feel like I did not promote it correctly back then and it may help a few more out now. Thanks!
How Do You Budget for a Completely Unexpected Expense?
Here was a
recent question from Carmen:
My kids have gifted me with a ticket to Istanbul & then Italy for my daughter’s wedding in Autumn…what is the best way to budget for additional trip expenses? Thanks–take care!
Okay, so most of us are probably thinking that the best way for budgeting for unexpected expenses is to save money in advance. You’d be right, but that isn’t helpful if that hasn’t been done yet and the expense pops up anyway. Plus, that may not be the question…
First – How to Estimate Travel Expenses
First thing’s first. Carmen may be asking how much she should budget for the trip, not how to come up with the money. Either way, she’ll need to know. For travel, I generally search around online for recent personal stories from other people to see how much things run. I research them based on the big categories and round up to cover anything I may have forgotten:
- Hotels/Where You are Staying
- Planned Fun
As a fun example, I actually researched the general prices of Istanbul and Italy to help Carmen out. I don’t know any more than any of you do about her trip, so these are just general targets.
I found an Istanbul Travel Guide at Leave Your Daily Hell that says that a hotel will run you $55+ per night, but a hostel would be between $15-$30 a night. Based on that same post and a 2013 Trip Advisor forum post, it looks like Istanbul runs about $75 a day for everything else including food, transportation, and fun. You can eat cheaper and visit less museums and save even more.
According to this 2013 post on Slow Travel Italy, you may spend between $300-$425 a day in Italy depending on how fancy your hotel is and where you eat.
If you want to spend less, check out this Walks of Italy post about cheaper options. I love the idea of staying in an agriturismo – an old farm house that offers you fresh made meals and they range from rustic to luxurious. Most often they cover your room and breakfast and dinner for $70 or less per night (50 euros).
Then you just have to worry about your transportation around Italy, your lunches, and what you want to do for fun. Getting around by train is an option that costs about $30 for most trips. You could also rent a car, but that looks expensive. You can grab lunch for less than $25 a day and then budget what you need to for fun based on where you go. You can easily stick to a $150-$200 a day budget if you want to splurge a little but not a ton.
Budgeting for Unexpected Expenses After the Fact
Overall, it looks like you will want to budget for about $150 per day for your trip and you can bring that down by cutting back in whatever category you see fit by hunting around for less expensive options.
The only way to save up extra money for something like this is to either cut expenses or increase your income. You can cut your expenses by taking a close look at your spending – first get rid of the easy stuff and then put yourself on a strict spending plan for the categories that you want to cut back on after the easy stuff in handled. We recently cut down our budget by $500 mainly through a stricter food budget and less fun money.
Make More Money
You can make more money in a bunch of ways, but the ones that pop into my mind are generally side hustles and hobby jobs since selling stuff is a one-time fix. Generally, I like my stuff or I wouldn’t still have it around. I also like having roommates since it’s pretty easy side income without a lot of hassle if you find the right person or people, but that is also more long-term. If you’d like to start your own site, I highly suggest checking out Bluehost. I make $750-$2000 a month with BFS and another $2000-$3000 through other online work like blog ad management and answering Google Play store reviews for a couple of applications.
Short term, look into seasonal jobs. Retail work is always looking for holiday help. I personally bringing in about $1000-$4000 a month through pet sitting. Babysitting and house keeping are always in demand too.
Hope this helps, Carmen! Does anybody else have some ideas for her? Please chime in!