Travel has evolved significantly over the past 20 years, with many travelers looking for something with more adventure such as walking treks in New Zealand, cooking experiences in Tuscany, cruising on the Mekong River, or travelling through Australia’s beautiful outback.
With all this extra adventure, the need to prepare financially has become even more important. The last thing you want when you come home from a life-changing trip is have a large debt hanging over your head. And you certainly don’t want to be worried about money while you are away from home.
Here are 5 ideas on how to make savings part of your journey.
- Start up a dream list or spreadsheet
While you are daydreaming about your trip and imagining your travel experiences, jot each of them down and add your estimation of the cost next to each dream item.
Keep adding to this list as your planning evolves, making sure you add in big ticket items such as flights, tours, petrol, eating out, accommodation and shopping.
If you find your expenses are getting out of your reach, divide them into “needs” and “wants”.
- Set up a dedicated savings account
Look for a savings account that is easy to use and has a competitive interest rate and conditions that suit you.
Adding money to this account as often as you can will make you feel more positive about preparation for the trip and reduce financial anxieties.
- Consider a garage sale
Garage sales are a great way to pare down possessions, create space in your home and add to your travel adventure fund. Selling unwanted items on eBay or Gumtree can be equally effective. Any extra income you can earn may mean you can make a special purchase on your trip or perhaps fund an accommodation upgrade or a side tour for your efforts.
- Prepay as much as possible
Pay for accommodation and day tours before you go. You’ll have more time to scout for the best deals before you leave and then have more time to focus on enjoying yourself while you’re away. Use rewards program points to pay for flights or accommodation.
- Consider swapping your credit card for a debit card
Credit cards can carry additional expenses and provide a temptation you don’t need. Debit cards remove that temptation as you can only spend what you have. Another alternative is a specialist travel card which allows you to purchase spending money in different currencies before you leave.
If you need help getting your finances organised for your trip, please speak to us today.
Disclaimer
Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.
