How to travel without breaking the bank
You work hard and deserve to be able to spend money on the things that make you happy. Travel, both near and far, is one of the top non-negotiable costs for me and for many of my clients. However, it’s important to have a plan and understand the financial impact of travel in order to ensure you strike a balance between living well and making progress towards longer-term goals. Here are my top tips:
SAVE UP FOR YOUR HOLIDAY FIRST; DON’T PAY IT OFF AFTER!
Putting your getaway on plastic can result in spending more than you’d planned because credit cards distance you from the pain of the purchase. Getting mired in credit-card debt will quickly turn that dream holiday into a nightmare.
SET A BUDGET FOR THE TRIP AND GIVE YOURSELF TIME TO SAVE
In the months leading up to the trip (in fact, it would be great if you could do this the time), work to a budget for everyday expenses to maximise savings. If you want an easy way to start making savings, take a hard look at the things you spend money on that don’t make you happier. This is the perfect place to cut costs because most of us fritter away 15 percent of our income without making our lives any better.
SHOP AROUND – PLENTY OF SITES ALLOW YOU TO COMPARE HOTELS AND AIRLINES
Check out Airbnb and keep an eye out for airline sales. While you’re on Airbnb, investigate renting out your home while you travel to make some cash to offset costs.
A TRAVEL CARD THAT ALLOWS YOU TO LOAD MULTIPLE CURRENCIES CAN
help reduce transaction fees, which quickly mount up.
CHECK THE EXCLUSIONS ON YOUR TRAVEL INSURANCE
For example, some schemes cap the cover for individual items so things like jewellery may not be fully insured.
If you put in the planning, you can enjoy your holiday guilt-free, knowing your finances are sorted.
WITH KATIE WESNEY OF FINANCIAL SERVICES PROVIDER ENABLEME, TAKAPUNA, AUCKLAND