Travel has evolved significantly over the past 20 years, with many travellers 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're away from home.
Here are 5 ideas on how to make savings part of your journey.
1. 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”.
2. 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 may make you feel more positive about preparation for the trip and reduce financial anxieties. Across the Westpac Group there are a number of savings products which could help you build up your savings faster.
3. Consider a garage sale
Garage sales can be 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 could 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.
4. Prepay as much as possible
Pay for accommodation and day tours before you go. You could 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. Another idea is to use rewards program points to pay for flights or accommodation.
5. Consider swapping your credit card for a debit card
Credit cards can sometimes 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.
Want to get your finances and travel plans in order? BT Super for Life is an everyday super account that allows you to conveniently manage it online with your everyday banking. It also provides access to travel and accomodation discounts through Benefits Now, our exclusive member benefits program. Find out more.
The information is current as at 12/11/2015.
BT Funds Management Limited ABN 63 002 916 458, AFSL No. 233724, RSE No. L0001090 is the trustee and issuer of interests in BT Super for Life which is a part of Retirement Wrap ABN 39 827 542 991, RSE R1001327. A Product Disclosure Statement (PDS) for BT Super for Life and BTPS’s Financial Services Guide (FSG) can be obtained by calling 1300 653 553, or from the Product Disclosure Statement page. You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of interests in BT Super for Life.
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