The short answer: list every cost category for the trip, estimate each one, and add a buffer for the unexpected. Then divide the total by the months until you go to see what to set aside, and track actual spending against the plan while you're away.
Step 1: List every category
The big ones are obvious. The small ones are where holiday budgets usually slip. A full list might include:
- Flights or train tickets
- Accommodation
- Airport parking or transfers
- Car hire and fuel
- Local transport
- Food and drink
- Activities, tours and entry fees
- Travel insurance
- Visas, passports or travel documents
- Luggage fees
- Travel money and card fees
- Souvenirs and gifts
- A buffer for surprises
Step 2: Estimate each one
Use real prices where you can: check flight and accommodation costs, look up local transport fares, and estimate food per day multiplied by the number of days.
A worked example
| Category | Planned |
|---|---|
| Flights (return) | £480 |
| Apartment, 7 nights | £700 |
| Food and drink (£50/day) | £350 |
| Activities | £150 |
| Transport and transfers | £110 |
| Travel insurance | £40 |
| Spending money and buffer | £160 |
| Total | £1,990 |
Made-up example for three people sharing an apartment.
Step 3: Turn it into a monthly amount
If the trip is 8 months away and you've put nothing aside yet, £1,990 ÷ 8 is about £249 a month.
Step 4: Track spending while you're away
Log costs as you go, even roughly, so you can see what's left each day. A shared spreadsheet on your phone works well for groups.
Frequently asked questions
How much spending money should I take?
It depends on where you're going and what you plan to do. Estimating a daily amount for food and extras, then multiplying by the number of days, is a common starting point.
Should I include things I've already paid for?
Yes. Including deposits and pre-booked items gives you a true picture of the whole trip's cost.
Plan it in a template
Our Holiday Budget Planner covers the whole trip: planned vs actual by category, cost per person and per night, a holiday savings tracker, and a split-and-settle tab for group trips.
Important: This article is general information to help you organise your money. It is not financial advice and doesn't take your personal circumstances into account. Any figures are made-up examples. For free, impartial guidance, visit MoneyHelper. If you're worried about debt, contact StepChange or Citizens Advice.