Paper Example on Budget and Financial Plan for Vacation Trip

A Vocational trip is significant in providing a chance to take meaningful breaks from the traditional rigidities of life, including school, and work. A vocational trip in most cases offers an individual ample time to spend with family. My main intention is to visit some unusual place, relax and enjoy the wonders that are not known to me. My dream vocational trip will take place in ten years from now. I predict that it would be expensive and therefore it will require a lot of funds. Nevertheless, with proper financial budgeting and planning, the trip would be afforded.

Am not quite sure about the circumstances in those ten years, but I presume would involve two adult travelers, my husband and i. We will take a trip to Barcelona, a charming city. Barcelona being the second largest city in Spain and the reasons why I choose it are that it has magnificent architecture, streets filled with beautiful fragrances, Catalonia countless rhythms, and the best museums in the world. It would be a fourteen-day trip, including air travel from Charlotte Douglas International Airport to the Barcelona International Airport. The trip will begin on Saturday, May 8, 2027, and end on Sunday, May 23, 2027, with a return trip to Charlotte, NC. Internet sources played a significant role in finding places to go for my trip

Travel Expenses

The cost of to and from tickets for husband and I are totaling to $1,299.34 each person. When tax is included the total fees for fights will be $2,598.67. The cost is not too expensive since I thought it would be $4,000. The cost of bag checking ranges from $20 to $25. So the final expense for my husband and me separately will be $1,349.34.

Lodging Expenses

Lodging will be provided by Well and Come Boutique Hotel. The hotel is beautiful and cheap. The cost per night is $355 at a classy and comfortable room. The hotel has all that we require staying for two weeks. It has households equipment such as refrigerator and gas cooker. The total expenses for the hotel accommodations are $4,713. After comparing between eating in the hotel and cooking food for ourselves, I realized that eating food I opt to cook our food in the hotel. However, we would use the amount saved to explore the city. Since this is my lifetime dream vacation, I have to utilize it fully. We will require food to provide us with energy during this vocational trip, and therefore, I have to plan the food expenses for each day. We will do our shopping for everything we require during our stay in supermarkets available in Barcelona. Eating food in the restaurant will be when we are trying something new or when we go to see new things in the restaurants available in Barcelona. I project we will spend an amount totaling to $200 to $250 in groceries that will serve us for this period.

Activities Day 1.) On our first day, we will be fatigued and exhausted from the long flights. The only thing we can do is buying groceries, and other food stuffs that we will be eating for two weeks. Day 2.) On this day we shall explore new foods at flavors of Barcelona since it offers the best food known as Meal for the 5 Senses. It will offer us a chance to research on the connection between flavor and sound and enjoy the great cooking skills designed to arouse all kind of senses. The cost will be $36 for a single person and therefore, $72 for the two of us.

Day 3.) On this day we will have fun experiencing Night Life in Barcelona. The tour at a club being entertained by a local DJ and am sure we will learn about the music the people in this city likes and their tastes. The total cost will be $45 for both of us.

Day 4) Directed Visit of Sagrada Familia, Tower and Museum. This will cost us $45 only to explore the La Sagrada Familia. It is a tourist attraction where many people tour in Spain. We will have fun to the fullest climbing to the highest point of basilicas eight barbicans to the heavenward. This would provide us with a clear view of the whole city. Day 5 and 6.) I dedicated these days to us. We watch romantic movies together and plan for our future as a married couple. We will get to know each other better and spend quality time together. Day 7.) On this day we will take a Hot Air Balloon Flight. Both of us have never been in one, and it will be a breathtaking moment in it. The cost will be $201for a single person. While having fun in an air balloon, we shall take pictures to preserve memories.

Day 8.) We will take a Hop-on Hop-off Bus Turistic. The cost will be $32 for one person. It is an enjoyable method to learn attractive sights in Barcelona city. We will spend time traveling and walking everywhere in the city and watch various historic monuments, numerous parks, beautiful beaches, and buildings. Day 9.) MIBA Museum. Entrance fee is $9, and this is a fair fee since the museum will give us the opportunity to discover a captivating range of discovery. It will also give us a chance to learn the history of Spain and history of different people that led to its development. Day 10 up to 13.) These few days we will take break and rest since we will be tired. We will also organize our flights back to the origin so that we may not have complicated situations on our day to return. Day 14) take a flight back home.

Overview of all Expenses:

Flights fees for both of us $2,598.67 Lodging expenses $$4,713 Food expenses $250 Activities expenses $691 Total Costs: $8,252.67. The Future cost of a vacation trip. In present value, the tour cost $8,252.67. Nevertheless, because I am planning the trip ten years today, the cost will be higher than the present due to 2.5% inflation. The total expenditure of the trip will increase to $10,563.26. To go for this trip my husband and I require being saving $52.85 each month so that we can hit the goal of $10,563.26. The average return is 10% and therefore total principal amount to $6,342.12. My whole interest amounts to $4,220.88. Assume that my husband and I wait for fifteen years instead of 10 years to make our travel; with 2.5% inflation rate the travel cost will be $11,951.36. This means that we will contribute $30.00 every end month to hit the goal of $11,951.36. The average return of 10% my whole principle will be $5,399.12 and the interest after ten years will total to $6,552.

My husband and I plan to take the travel in ten years from today and fifteen years from now respectively. I had to make use of Excel spreadsheet to derive the future expenditure (FV). I used the formula FV (rate, n, type, PV). The rate of inflation was 2.5% and the periods number is denoted by n which are ten or fifteen respectively. The present value (PV) is the expenses of the trip now, and the type was zero because all the payment was scheduled at the end of the duration. To calculate how much we require to invest, I used the same formula in an excel spreadsheet. FV (rate/nper, PMT, PV), the rate of interest, is 10% divided by 12 which is the number of investment periods per year. PMT as the numeral of years remaining to make payments/investment deposits (ten or fifteen respectively) * the number of investment periods per year (12) and the PV was the amount invested each month. Based on this numerical representation of our dream vacation, saving for this trip is a worth investment. When you look at the bottom line cost of the trip, it seems extremely expensive. Spending over $22,000 on a two-week vacation seems like something only someone with a high-income job could ever afford. However, by properly planning for the trip, we can make a realistic budget to invest a little money each month into an investment that will earn a decent return so that my husband and I will enjoy the dream vacation trip even with a modest income.

References

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Mayes, T. (n.d.). Microsoft Excel Time Value Function Tutorial - Lump Sums. Retrieved December 29, 2016, from http://www.tvmcalcs.com/calculators/excel_tvm_functions/excel_tvm_functions_page1

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