How to Realistically Budget for Two Vacations a Year

Dreaming of taking two vacations every year is a common goal, but figuring out the finances can feel overwhelming. You clicked because you want to know the magic income number that makes this dream a reality. While there isn’t a single salary that works for everyone, this guide will provide a clear framework to calculate exactly what you need.

We will break down typical vacation costs, show you how to build a realistic savings plan, and help you determine the income required to support your travel goals without financial stress. Let’s turn that dream of two yearly trips into an actionable plan.

The First Step: Define Your Travel Style

The amount you need to earn depends entirely on the kind of trips you want to take. A week-long luxury resort stay in the Maldives has a vastly different price tag than a five-day road trip to a national park. To figure out your target savings goal, let’s look at two common vacation types and their estimated costs.

Vacation Type 1: The Budget-Friendly Escape (5-7 Days)

This could be a domestic trip, a road trip, or a visit to a nearby, affordable international destination like Mexico or parts of the Caribbean. The focus is on maximizing experience while minimizing costs.

Transportation: For domestic trips, driving can be the cheapest option if you have a fuel-efficient car. For flights, using budget airlines like Southwest or Spirit and booking in advance can keep costs low.
- Estimated Cost: $200 - $500 per person for flights or gas.
Accommodation: This is a huge area for savings. Opting for a private room on Airbnb, staying in a budget-friendly hotel chain like Holiday Inn Express or Best Western, or even trying out a modern hostel can significantly cut costs.
- Estimated Cost: $70 - $120 per night, totaling $350 - $840 for the trip.
Food and Activities: Focus on free activities like hiking, exploring city parks, and visiting free museums. For food, mix in meals from local grocery stores with dining at casual, highly-rated local eateries instead of expensive tourist traps.
- Estimated Cost: $50 - $80 per day, totaling $250 - $560 for the trip.

Total Estimated Cost for a Budget-Friendly Trip: $800 - $1,900 per person.

Vacation Type 2: The Mid-Range International Adventure (7-10 Days)

This is the classic international vacation, perhaps a trip to a European city like Lisbon or Rome, or exploring a country in Southeast Asia like Thailand. You’re looking for a comfortable experience without splurging on pure luxury.

Transportation: International flights are a major expense. Booking during the “shoulder seasons” (spring and fall) can save hundreds. Using flight trackers like Google Flights or Skyscanner is essential.
- Estimated Cost: $800 - $1,400 per person for round-trip flights.
Accommodation: Here, you might choose a well-located Airbnb apartment or a comfortable 3-star or 4-star hotel. This gives you more space and amenities than a budget option.
- Estimated Cost: $150 - $250 per night, totaling $1,050 - $2,500 for the trip.
Food and Activities: You’ll have a budget for major attractions, guided tours, and a few nice dinners. You can still save money by having casual lunches and using public transportation.
- Estimated Cost: $100 - $150 per day, totaling $700 - $1,500 for the trip.

Total Estimated Cost for a Mid-Range International Trip: $2,550 - $5,400 per person.

Calculating Your Annual Vacation Fund

Now, let’s put it together. If your goal is to take one budget-friendly trip and one mid-range international trip per year, your total annual vacation savings goal would be:

Low End: $800 (Budget Trip) + $2,550 (Mid-Range Trip) = $3,350 per year
High End: $1,900 (Budget Trip) + $5,400 (Mid-Range Trip) = $7,300 per year

This means you need to save between $280 and $610 every single month to fund your two vacations. This is your personal “magic number” to focus on.

So, How Much Do You Need to Earn?

To figure out the income needed to save this amount, we can use a popular budgeting principle: the 50/30/20 rule. This rule suggests allocating your after-tax income as follows:

50% to Needs (housing, utilities, groceries, transportation)
30% to Wants (dining out, hobbies, shopping, and travel)
20% to Savings & Debt Repayment (retirement, emergency fund)

Your vacation fund of $280-$610 per month would typically come from your “Wants” category. Let’s see what income that requires:

To save $280/month (the low end): If this amount represents just 10% of your monthly take-home pay, you’d need a net income of $2,800/month, which is roughly a **$40,000 annual salary** after taxes.
To save $610/month (the high end): If this amount is 10% of your monthly take-home pay, you’d need a net income of $6,100/month, which is roughly an **$85,000 annual salary** after taxes.

This shows that making two trips a year is achievable across a wide range of incomes. Someone on a $40,000 salary can absolutely do it by prioritizing travel savings, while someone on an $85,000 salary can achieve the higher-end goal more comfortably.

Practical Steps to Build Your Vacation Fund

Knowing the numbers is one thing; actually saving the money is another. Here are actionable strategies to make it happen.

Open a High-Yield Savings Account (HYSA): Don’t just let your travel money sit in a standard checking account. Open a dedicated HYSA with a bank like Ally Bank, Marcus by Goldman Sachs, or Capital One. These accounts offer much higher interest rates, so your money grows while you save.
Automate Your Savings: The most effective way to save is to make it automatic. Set up a recurring transfer from your checking account to your travel HYSA for the day after you get paid. This “pay yourself first” method ensures the money is set aside before you’re tempted to spend it.
Get Smart with Credit Card Rewards: If you are responsible with credit, a travel rewards card can accelerate your savings. Cards like the Chase Sapphire Preferred or Capital One Venture allow you to earn points on everyday purchases that can be redeemed for flights and hotels. The key is to always pay the balance in full each month to avoid interest charges that would cancel out your rewards.
Conduct a “Subscription Audit”: Go through your bank statements and identify all recurring monthly subscriptions. Do you really need five different streaming services? Are you using that gym membership? Cutting just two or three services could free up $30-$50 a month to put directly toward your travel fund.

Frequently Asked Questions

What if my income is lower than the examples? You can still travel! Focus on more affordable options. Plan a fantastic road trip and go camping in a national park. Look for “staycation” opportunities where you explore your own city or region like a tourist. The key is to match your travel style to your budget.

Is it ever a good idea to go into debt for a vacation? It is almost always a bad idea. The stress of paying off a high-interest credit card bill can ruin the positive memories of a trip. It’s far more rewarding to save up and travel knowing that everything is already paid for.

How far in advance should I book to get the best deals? For international flights, experts often recommend booking 3 to 6 months in advance for the best prices. For domestic flights, 1 to 3 months is usually the sweet spot. Avoid booking last-minute, as prices tend to skyrocket.