Running out of money partway through a holiday is stressful and can spoil the rest of the trip, but with a little planning it is easily avoided. The key is budgeting sensibly and keeping track as you go. This guide explains how to avoid running out of money on holiday. It is general information, not financial advice, so budget for your own circumstances, but the practical steps below will help your money last the whole trip.
Set a budget first
The foundation of not running out of money is setting a realistic budget before you travel, covering your spending money for the whole trip. Without a plan, it is easy to overspend early. Our guide on setting a holiday budget explains how. Working out in advance how much you have to spend and what it needs to cover, rather than spending freely and hoping, gives you a clear framework that is the single most important step in making sure your money lasts.
Work out a daily allowance
Divide your spending money by the number of days to get a rough daily allowance, which gives you a clear sense of what you can spend each day to make it last. This simple figure is a powerful guide. Our guide on how much spending money you need helps you set the total. Knowing your daily allowance, and roughly keeping to it, helps you pace your spending across the whole holiday rather than splurging early and finding yourself short towards the end of the trip.
Track your spending
Keep track of what you spend against your budget as you go, using a card app, a note on your phone, or simply checking your balance regularly. Tracking makes overspending visible early, while you can still adjust. Checking your spending every day or two, rather than only when money feels low, gives you the earliest warning if you are going too fast. Staying aware of where you are against your budget throughout the trip is one of the best ways to avoid running out.
Build in a contingency
Always have a contingency, an amount set aside for emergencies and unexpected costs, so a surprise does not wipe out your spending money. Keeping a reserve you do not dip into for everyday spending protects you. Building a buffer into your budget, separate from your daily allowance, means that when something unexpected arises, as it often does, you can cover it without derailing the rest of your holiday or running short, which is exactly what a contingency is for.
Watch the big extras
Be mindful of the larger discretionary costs that can blow a budget, such as expensive excursions, big nights out, shopping sprees and pricey restaurants. These add up fast and are the usual cause of running short. Planning and budgeting for the big extras you really want, while being cautious about impulse splurges, keeps them under control. Being aware that it is the large, occasional costs rather than everyday spending that most often cause people to run out helps you watch them carefully.
Do not blow it early
A common mistake is overspending in the first few days, caught up in holiday excitement, then struggling later. Pacing yourself from the start, and keeping your daily allowance in mind, avoids this. Resisting the temptation to splash out heavily at the beginning, and spreading your spending more evenly across the trip, ensures you still have money to enjoy the later days. Remembering that the holiday lasts the whole trip, not just the first exciting days, helps you avoid front-loading your spending.
Make cheaper choices
If you are spending faster than planned, make cheaper choices to bring it back in line, such as eating in or at cheaper places, choosing free or low-cost activities, and cutting back on extras for a while. Small adjustments add up. Our guide on planning a holiday on a budget has money-saving ideas. Being willing to economise when needed, rather than carrying on regardless, lets you correct course and ensure your money lasts, without having to stop enjoying yourself entirely.
Keep a reserve and backup
Keep a reserve of money and a backup means of access, such as a second card and some emergency cash kept separately, that you do not touch unless genuinely necessary. This protects you against running out or losing access. Our guide on the best way to take money abroad covers backups. Having a reserve you treat as off-limits for normal spending, plus a backup card, gives you a safety net so that even if your main spending money runs low, you are not left completely stuck.
Know how to access more if needed
Know how you could access more money in a genuine emergency, such as transferring from savings, using a backup card, or emergency services from your bank, so a shortfall is not a disaster. Our guide on getting emergency cash abroad explains the options. Understanding in advance how you could get hold of more money if you really needed to, while aiming not to, provides reassurance and a plan, so that running low becomes a manageable situation rather than a crisis.
Be realistic from the start
The best way to avoid running out is to budget realistically in the first place, being honest about costs and your spending habits rather than underestimating. An over-optimistic budget is the root of many shortfalls. Setting a budget that genuinely reflects what your trip will cost and how you spend, with a contingency, means you are far less likely to run short. Realistic planning before you travel, combined with tracking and pacing while away, is the surest way to make your money last.
Plan free and low-cost activities
A great way to make your money last is to include plenty of free and low-cost activities in your plans, such as beaches, walks, parks, free attractions and exploring on foot, alongside the paid ones. Our guide on planning a holiday on a budget has ideas. Mixing enjoyable free experiences with occasional paid treats, rather than spending on everything, stretches your budget while still giving you a full and enjoyable holiday, and means you are far less likely to run short before the trip is over.
Avoid common money traps
Watch out for the common money traps that drain budgets, such as poor exchange rates, hidden card fees, paying in pounds abroad, and tourist-priced spots. Our guide on common holiday planning mistakes covers pitfalls. Being aware of the avoidable ways money quietly leaks away on holiday, and sidestepping them, keeps more of your budget for the things you actually want, helping your money last by ensuring it is spent on your holiday rather than lost to fees and poor value.
In short
To avoid running out of money on holiday, set a realistic budget, work out a daily allowance, and track your spending as you go so overspending is visible early. Build in a contingency, watch the big discretionary extras, and do not blow your money in the first few days. Make cheaper choices if needed, keep a reserve and backup, and know how to access more in an emergency. This is general information, not financial advice, so budget for your own circumstances.
Find more in our Travel Money guides.