No matter how you look at it, travel costs money. Saving for a long term goal can be hard, and you don’t want to be paying off debt for the next few years! We’ve put together some ideas on how you can better plan for your trip.
What should I budget for?
There are many ways your money will be spent whilst travelling. You’ll need to budget for:
- airfares and transport
- passport and the required visas
- bills at home whilst you’re away
- travel insurance.
Before you leave, you will also need to ensure you can access your money. There are many options available, including cash, travel cards, and credit or debit cards. You could choose to carry cash only, however if you lose it or it’s stolen you won’t have any money that is accessible. Don’t assume your debit card will work overseas, and don’t assume there won’t be any fees! Many banks will offer prepaid travel cards that have lower fees and allow you to keep multiple currencies on it. Make sure you understand the fees and restrictions before you leave.
Tips on saving
Saving for long term goals can be hard, especially if you are unsure exactly where you want to go. But you don’t have to be earning a huge amount of money to save for a holiday. Here are some easy ways to save some extra cash:
- cut down on entertainment costs
- limit nights out
- cook at home instead of heading to restaurants
- sell items you don’t use – everyone has them!
Every little cent counts! Make the most of your savings by putting it in a hard to access interest savings account. This way it will stop you from reaching in every now and then, and you accrue interest along the way.
For more holiday savings tips, and general budgeting information, visit MoneySmart.