I get paid every 2 weeks, so 2 months a year, I get a 3rd pay check. Our monthly budget is based on me having 2 paychecks a month, so that 3rd check twice a year is entirely extra and goes into the vacation fund. Bonuses from work go in there too as well as a set amount each month. That is the money we have available, so we plan our trips to stay within that budget.

That's a great plan, november_moon1

Hi Tango,

I don't really budget, but I am kind of a budget traveler. I probably spend about 5% of my salary on travel a year. This generally allows me one big vacation and a bunch of smaller ones (I travel for my hobby, which takes up most of these).

I'll give an example. Like Sludick, I am going to Alaska this summer with a group of people.

I used FF miles for my flight.

In Vancouver (cruise leaves from there), my 2 friends and I are sharing one room at a $170 a night hotel instead of at the Four Seasons, where my aunt and uncle are staying ($350 a night). Could we afford the Four Seasons? Yes. But I just can't bring myself to do it! :)

On the cruise, I booked an inside cabin - I can go on deck if I want to be outside.

In Alaska, I am going to camp. Bringing my tent and sleeping bag will be a lot cheaper than staying in hotels in Denali and Seward. I am doing it because I love to camp, but it does save money. I also have a friend in Anchorage, so I don't have to get a hotel there.

I use a "regret" test instead of a formula.

I ask: If find out, a year from now, that I cannot travel any more, will I regret not having taken this trip? Will I say to myself "I could have taken this trip without serious long term financial impact but I didn't. Now I can't do it even if I wanted."

Each of us has a different view of one's mortality. Having spent two year of my life not knowing if I travel again due to a health reason, I now look at each travel opportunity not as yet another expense but as another milestone in my life.

nickn, you are so right. We went through something similar when my husband was diagnosed with lung cancer. Every test came out positive. Then finally a surgeon actually opened him up and found that those spots were not cancer, but a type of autoimmune disease that could be controlled. Now, although we have had to curtail some of the more strenuous activities, we look on every vacation as a gift.

We work more - I am a consultant, so if there is someplace expensive we want to go, I find more work. Husband has a regular job plus does some teaching, consulting and writing on the side - that money is earmarked for vacation.

We have never regretted money spent on a trip, especially those we took with our kids.

These answers are all great! I really like the "regret test" one! I think that will be huge for me going forward. I do regret not going on a couple of trips because I thought they were too expensive. Looking back now, it would have been fine.

I just got back from attending a funeral service for the husband of a friend/coworker of mine. This thread came to mind during the service, as I recalled that they had considered taking an Alaska cruise recently, but decided to wait a couple more years because of the cost (although they certainly could have afforded it). My friend's husband died quite unexpectedly on Sunday, and now they don't have that time. Life is short and often ends before we ever expect it to.

We don't budget for travel on a formal basis. However, it usually works out that we spend about 5% of our gross income on travel.

We are in our 50s, kids out of the house, and no mortgage.