Last time you travelled, did you blow your budget? It’s so easy to splurge on nice things to bring home, or fancy clothes you can’t get in Australia, or souvenirs you probably don’t need, but it can hurt your finances. It’s possible not to overspend when you travel, but you have to be strict with yourself and plan how much you’ll spend each day.
If you don’t hit your limit for a few days, don’t just add that to the next day’s budget – save it!
For your summer or New Year’s travel plans, set aside a maximum amount per day and don’t go over that for any reason. If you don’t hit your limit for a few days, don’t just add that to the next day’s budget – save it! While it’s straightforward enough to not blow a budget overseas or on holiday in Australia, it’s a little harder to increase your savings account while you’re away.
What expenses do you have to budget for?
Before you leave for your holiday, you’ll need to book flights and accommodation. Where possible, pay for these before you leave so you know how much you have left to play with. Other expenses you can plan for include:
- Travel insurance (a necessity),
- A hire car,
- A roaming plan for your mobile, and
- Emergency money.
These expenses are generally a set price, so you can either pay them before you leave or put money aside in your budget to cover the costs. As much as you’d love your budget to be all-inclusive, there are some things that are a little harder to plan for:
- Food and beverages,
- Entertainment costs, and
- Shopping (because you didn’t leave all that room in your suitcase for nothing).
Part of the fun of travelling is the unexpected. You might come across a cool bar or restaurant during your daily exploration and really want to go inside and experience the local delights. This is where you want your budget to be flexible – a set amount each day (be a little generous, you’re on holiday) means you have room for these surprise expenses.
A famous show might be on at a local theatre, or you walk past a pair of the most incredible shoes you’ve ever seen. Having a set amount for entertainment and shopping on top of your daily expenses gives you room to enjoy yourself, plus a sort of accountability as long as you don’t go over your budget. A smart way to keep to your budget is to use a Cash Passport from BOQ. Load a set amount onto it before you leave and you won’t need to worry about withdrawing cash at local ATMs all the time.
Tips for saving money while on holiday
A bottle with a built-in filtration system means you won’t have to spend money on water at all!
To save money on food and beverages overseas, make the most of the free breakfast at your hotel if that’s on offer. Taking extra fruit and bread rolls with cold meats can help to stop you spending in the middle of the day. A smart water bottle is a great investment before you leave as well. Purchasing bottled water really adds up over a short space of time, and if you can’t drink the tap water you’ll have no other options. A bottle with a built-in filtration system means you won’t have to spend money on water at all.
You can reduce accommodation costs while travelling by calling in some favours from friends. If you have an old mate in a city you plan to visit, ask if you can stay even one night. You could save a significant amount over a few weeks by visiting four or five friends (and having a good catch-up while you’re at it). Don’t be afraid to ask – you can always count on your friends, and they’ll be able to show you cool, affordable places to eat and drink too.
Budgeting to save while travelling is hard, but it is possible. You just have to be strict with yourself about spending and deposit into your savings account as much as you can. For more information about opening a savings account or budgeting for your upcoming Christmas travel, get in touch with BOQ today.