 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: As you start to plan your honeymoon, it's important that you first create a personal budget. Doing this will help you better understand your income, expenses and ability to save. The earlier you get your budget established, the better, since it will prevent overspending down the line.\nA budget is simply a plan: You still decide where you want your money to go, but a budget provides guardrails to keep you on a steady course. You can create one with a pencil and paper or use a spreadsheet. Whichever method you use, the process is the same.\nEvery budget includes a rundown of the following:\n*   **Net monthly income**: This is what gets deposited into your bank account over the course of a month. If your income is steady, find this by totaling up all the money you received from paychecks and other income last month. If your income is more unpredictable, total your average income for the past three to six months.\n*   **Expenses**: Note all your regular monthly bills—from rent and utilities to gas and food—as well as those that arise occasionally, such as estimated medical and holiday expenses. If you have debt, include those payments. Also add in the amount you put toward savings, such as deposits made to your emergency fund and retirement account and contributions toward other financial goals, such as a down payment on a house. Finally, include your discretionary expenses, such as how much you spend on clothes and entertainment in a month. Cutting back on discretionary spending before your wedding will help add to your honeymoon budget.\n*   **Available funds**: This might be cash you've already saved with a honeymoon in mind or that you expect to receive as wedding gifts.\nTo find out how much you may be able to save for your honeymoon, subtract the total of your monthly expenses from your income, then multiply that figure by the number of months before your honeymoon. Add in the available funds, and there's your honeymoon budget.\n**_Example_**: $3,000 monthly income - $2,500 expenses = $500. You have one year to save: $500 x 12 = $6,000. With $1,000 in extra available funds, you'd have $7,000 ($1,000 + $6,000) to spend on your honeymoon.\nYour budget will help you figure out the type of honeymoon you can take without breaking the bank. If the amount you'd be able to save is $1,000, a weekend getaway at a local bed and breakfast may be among your options, while $10,000 will provide you with a longer and more luxurious trip.\nAfter that, start to plan your honeymoon. Imagine you decide to spend $8,000. Break the figure down with estimates of where that money will go:\n*   Airfare and travel insurance: $1,800\n*   Ground transportation, tips and extras: $1,000\n*   Hotel: $1,500\n*   Food and drink: $1,500\n*   Entertainment: $1,000\n*   Shopping: $1,200\nTotal cost: $8,000.\nThis is a great starting point, but still leaves room for flexibility. Want a more elaborate honeymoon? Consider shortening the trip, but upgrading your accommodations. It works the other way too: If you prefer an extended getaway, opt for less-expensive per-night arrangements. If you're not happy with what your budget can get you, pare down spending or add to your income so you can save more for your trip. Once you arrive at a plan you're satisfied with, you can start making travel commitments and setting your itinerary. END