Did you know there's an actual "Plan for a Vacation Day?" It happens on the last Tuesday in January as part of a nationwide effort reminding you to plan out your PTO and start budgeting for a little R&R.
Planning and budgeting for a vacation can be stressful and a lot of work, as more people are choosing to make their own arrangements instead of using a travel agent. That's why experts say it's best to start the process early.
First, figure out how much PTO you have and how much you are planning to use.
Ashley Russo, a financial advisor for Northwestern Mutual, says the next step is working on your financial plan so you know what budget restraints you will need to stay in when it comes to planning the trip.
"We can look at the budget and we can say, ok there's what we can save each month in order to get to whatever it is, because if we put money on a credit card unfortunately, what will happen is we'll take on interest and you know travel bills will become very expensive very quickly," Russo said.
According to NerdWallet, travelers expect to spend close to $4,000 on average on a trip for airfare and hotel costs. That's why Russo recommends getting a certain amount deducted from your paycheck automatically so you can start to pay off travel expenses even before you leave.
"Most Americans don't actually know what they actually spend each month to what's coming in, what's going out and potentially what are we willing to sacrifice in order to get to that travel goal," Russo said.
That's why it took Brandy Milikini and her family three years to plan a trip to California from Hawaii.
"A lot of budgeting and discipline. We had to set a goal and we had to do whatever we could to make that goal, whether if it's limiting our spending or eating out or whatever. But we know we wanted to make it happen and we were just determined to do so," Milikini said.
Russo says you should also factor in about a 10 to 15 percent buffer to your total costs for unexpected expenses. But if you do come back to a stack of bills after your vacation, Russo suggests prioritizing your bills.
"Depending on your credit card, paying off the highest interest rate first is certainly going to be important and then going back to that budget. What can we cut and what can we automate to get that credit card bill down," Russo said.
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