Mind the gap by planning ahead
SPENDING several hundred dollars while saving for a gap year can seem counter-productive, but the investment enabled Daniella Levy to live abroad and save money in the process.
She paid an agency that matched potential au pairs with families overseas and it led to free accommodation, plus spending money, in the UK city of Cambridge.
“The agency sent my profile to different employers and took care of setting everything up, like my working with children check,” Ms Levy said. “They did all the work finding a family.”
She worked for two surgeons, getting their five-year-old daughter to and from school every day and making her dinner. Ms Levy’s weekends were free, allowing her to explore.
“The job covered my accommodation and food, with a bit of extra pocket money each week,” she said. “I’d already saved quite a bit before travelling, but if I wasn’t living there, I wouldn’t have been able to afford Cambridge.”
The Aussie made full use of modern work and travel resources like online review forums and blogs.
“Everything is so much easier these days,” Ms Levy said.
“I couldn’t imagine doing any of it without Google maps or online reviews.”
Good preparation, such as saving rather than borrowing money to travel, can lay the foundation for making money last longer abroad, said MoneyMe CEO Clayton Howes.
“It’s crucial you know how much money you’ll need in the bank before setting out, especially as you may not get work immediately,” Mr Howes said, adding that one-off personal loans can be organised later if needed.
Once employment is gained, he suggests staying on top of tax obligations and keeping a close eye on currency exchange.
“If you get a job, find out which currency you’ll be paid in and if you need to open an account there,” Mr Howes said. “If your salary is deposited into your Australian account … factor in international wire fees and currency exchange costs.”
Credit Card Compare CEO David Boyd suggested using credit cards to earn rewards points before travelling. “If you’re starting with no points to speak of, a sign-up bonus credit card can kick start this with around 100,000 instant points,” Mr Boyd said.
Credit cards should be used carefully, however, and must be paid off in full each month so that interest rates don’t cause worrying debt.