7 Top Tips for Travel Budgeting
By Craig Joslin, the founder of The Australian Expat Investor
When
travelling abroad, one of your key considerations will likely be costs and
budgets. The smart traveler knows the best way to limit cash risks, make the
most of money-saving opportunities, and most importantly how to make the right
decisions on spending. Many “old hands” will offer country-specific advice, but
there are some simple tips to save money when travelling abroad.
You
can divide your “battle-plan” into three sections; long range planning,
before you go, and hitting the ground running. In this article we’ll look
at the key tips to making your travel a success.
1.
Purchasing Your Tickets
There
are certain times of the year when it is cheaper to travel, and there are
figures available to give you a guide on exactly how far in advance you should
be purchasing. Both Cheapair and CNtraveler provide great information. As a rough
range, anywhere between 21 days and 50 days in advance is optimal, but don’t
book from Friday through Sunday. Studies suggest that if you follow this,
you’re likely to save up to 30% on average.
2.
Sorting Out Accommodation
The
days of staying in a run-down hotel near the airport just to save money are
long gone. The sheer range of options available to the consummate
traveler is now huge, and if you have the time you can compare options such as
hotel rooms, AirBnB, or short-term apartment rentals. Set a realistic
accommodation budget and start looking on sites like booking.com or Airbnb.com for a great comparative search engine.
Figure
out your length of stay, estimated budget and most importantly, how far you’re
willing to travel on a daily basis. Add the data set to the search function and
see how many good options are available.
3.
Travel Light
Depending
on your choice of carrier and destination, you’re likely to have between 20 and
40 kg of luggage allowance. Try to prioritise your luggage into “must haves”
and “nice to haves”. Consider what you will need when you land and what
things you can either do without entirely or can do without for a few weeks.
Should
you be planning on taking heavier items such as a golf bag, surfboard, or a
musical instrument, it can not only be cumbersome, but you are likely to be
charged per kilo over your luggage allowance. Evaluate sending them separately
as unaccompanied air freight instead, and you might save a considerable amount
of money.
4.
Travel Insurance
Although
the cost of travel insurance can be high, it is guaranteed to give you peace of
mind and work out cheaper than running into any out-of-pocket expenses.
Insurance will in many cases also entitle you to a higher standard of care if
you are not going to a less developed country.
One
of the key considerations with insurance is to “get only what you need”. Many
companies that offer travel insurance begin consultations with a global package
which will include the United States. Because of the high medical costs in the
US, if you also include America on your insurance, you’ll pay a much higher
premium. Be specific about where you are going and what you’re likely to be
doing, this will get you a better quote. And don’t be afraid to shop around,
either.
5.
How Do You Intend To Spend?
Undoubtedly,
the easiest option for spending money overseas is to use your credit or debit
card; you can do big purchases on the card, or get cash from a range of ATMs.
But just because it is the easiest way, this doesn’t mean it’s the cheapest.
Bank charges (in particular foreign currency transaction fees) can be
extremely high. There are several alternatives worth considering:
Travel
Cards: They work almost exactly like credit/debit cards but are set-up for
international use. They have the added advantage of not ruining your life if it
becomes lost or stolen. Check out the reviews at choice.com.au.
Get
Currency in advance: When most people land, the first thing they do is go to
the airport ATM or Money Exchange desk. The rates are based on the idea of a
captive crowd that needs local currency before they can catch a taxi or a bus,
so the exchange rate is not as good as you could otherwise receive. Having
local cash already in your hand will save time, effort and money. Try buying
your currency in advance. Places like Travelex.com or Travel Money Oz can get
you better rates as they are seeking out customers as opposed to relying on
desperate need. For more information on advance currency buying, check
out this article.
If
you’ve ever gotten off a plane and seen other people “floating around” the
airport, it’s because they don’t have a plan. And those that don’t have a plan
are likely to end up spending a lot of money for no good reason. If you know
exactly what you’re going to do and where you’re heading, you can ensure that
the cheapest/best options are available to you. Here’re a couple of tips to be
the “best-prepared on arrival”.
6.
Get a Local SIM
Most
phones today come with International capabilities; which is great, but
expensive. Ask around the airport for a place to buy a local SIM card. It
doesn’t have to be your main/permanent SIM, but it will cut costs on calls and
especially internet usage whilst you are travelling abroad.
If
you don’t buy a local SIM card and just want to rely on free local wifi
networks, at least don’t forget to switch off mobile data on your smart phone.
You don’t want to return home to get the nasty surprise of the high cost
of international data downloads whilst you have been on holiday.
7.
Immediate Transport
There
will be several counters in the arrival hall offering various modes of
transport either into the city or to your hotel. There will also be a lot of
people offering taxi services. Don’t feel pressured into choosing one straight
away. “Informal taxis” or “private cars” can end up costing you a lot more (and
may be a lot less safe) than what you need to spend (depending on the location)
Wherever
you’re going and whatever you intend to do when you get there, being prepared
is never a bad idea. Proper research will allow you to set a realistic budget
and stick to your spending goals. The more cash you save on unnecessary
expenditure, the more money you’ll have for fun.
By Craig Joslin, the founder of The Australian Expat Investor
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.
A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.
Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.
