Why this is useful
Once flights and accommodation are paid, the real question is how much you can spend each day without running out. This turns a total budget into a daily allowance with a safety margin.
How it is calculated
Daily allowance = (total budget − pre-paid costs − contingency) ÷ trip days. Contingency = contingency % × money left after pre-paid costs.
Worked example
Example only: a 3,000 budget with 1,200 already paid leaves 1,800. Setting aside 10% (180) leaves 1,620, or 162 a day over 10 days.
Common mistakes
- Skipping the contingency — lost bags, taxis and medical costs happen.
- Forgetting costs paid on arrival, such as tourist taxes or deposits.
- Splitting a group budget evenly when people spend differently.
Questions
How big should my contingency be?
Many travellers use 10–15%, more for remote destinations or long trips. It is your choice, not a rule.
Should insurance count as pre-paid?
Yes — include anything you pay before leaving, such as flights, insurance and visa fees.