Travel is one way to broaden the mind and learn more about the world around us, but it's not always cheap. If you're hoping to plan the holiday of your dreams, your first step should be to think about how much you'll need to save, and how to do it. When coming up with a savings plan there are a few key steps you should follow.
1. Create a budget.
It's a good idea to create a budget when preparing for a holiday. You should cover how much you'll spend while away from home, including core expenses such as travel, accommodation, activities and food, as well as a little extra for any shopping you may want to do. In addition, it's important to factor in other expenses such as travel insurance, which is often overlooked when budgeting, but can prove invaluable if anything goes wrong while you're away.
Make sure to also set money aside to cover your expenses back home whilst your away. Just because you’re on holiday it doesn’t mean that the rest of your bills are! Put aside enough to cover repayments such as your mortgage and any utility bills that come up.
2. Book early.
One of the benefits of creating a travel budget is that you should get an idea of:
- What sort of activities you'll be doing
- Where you'll be staying
- How many extra expenses you'll have along the way.
This makes it possible to book certain things in advance, an approach that can save you big bucks in the long run.
A great example of the benefits of booking early is accommodation. The later you leave this, the more likely it is that prices will have increased as the amount of available rooms decreases. As an added bonus, the sooner you book, the more options you'll have, allowing you to secure the perfect location from which to explore your destination.
It's also worth keeping an eye out for any deal that may be available when booking. If you can find a holiday package that rolls accommodation, food and activities into one, you'll likely be able to save money by avoiding multiple sets of fees on each transaction.
3. Work out how you'll spend money.
Lastly, if you want to make your money go as far as possible while on holiday, it's crucial to spend some time working out the best way to spend it. This is particularly true if you're travelling overseas, as you'll need to factor in fluctuating exchange rates as well as the fees that may be levied for making foreign transactions or cash withdrawals.
To minimise any unexpected costs, it's a good idea to get yourself set up with a travel card, such as a cash passport. This is effectively a prepaid debit card that can hold multiple currencies, allowing you to spend as if you were a local and potentially avoiding high exchange rates and fees. If you'd prefer to take physical cash on holiday, it's important to take this out before you leave Australia.
To find out more about spending smart while on holiday, contact the Beyond Bank team today.
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