If you're truly broke, you shouldn't be going on vacation at all. If you're on a budget, however, there are many things you can do to save money and still enjoy a wonderful break. The key is on the planning.

Start by determining how much money you have to spend. Do you have something set aside for the trip or will you have to deep into your savings? If it's the second, would you be able to recoup the money or will this cause a permanent setback?

Now, let's assume you did the math and you came up with a reasonable amount. If you spend it wisely, every penny will go far.

Transportation

Don't discard airfare right away. Last-minute deals (which sometimes can be booked up to a week in advance, leaving you with plenty of time to plan everything else), internet discount sites, and even a travel agency can sometimes get you incredible discounts.

If airfare is out of the question and you're traveling alone, buses are an option. Large companies sometimes offer great deals. Greyhound, for example, offers the Go-Anywhere-For $12 (or $15 or $20, depending on the time of the year) deal. It's not really anywhere, but you do have a lot of options if you're based on a large city. From New York, for example, you can reach Boston, Baltimore, Silver Spring, Philadelphia, or Washington DC for less than $20. Similar deals are in place for the west coast.

If you have kids or are traveling with a group, a car is usually the best alternative. You are limited by distances, but in theory, you could at least reach the neighboring states in a few hours. Even if you don't own a car, renting can still be budget-friendly. Many companies offer large discounts when you rent a car for a week, and some will even throw in some extras, such as a discount card for gas or coupon meals. Or rent a RV, with costs considerably more but will save you money on hotels and food.

If all else fails, think about places closer to home. Check the Internet for less-known destinations in neighboring counties.