Top ways to save for your holiday
We
all know that travel can be expensive. By the time you add up your flights,
accommodation and insurance costs it almost feels like there’s no money left to
go out and enjoy the city to which you have travelled.
Finding
new ways to come up with the cash for your holiday, and to keep costs down
while you’re on vacation, is a must for every travel addict.
Here
are some of the best ways to pay for your holiday necessities and still have
enough money left over for those once in a lifetime travel experiences.
Saving
up before you go
Saving
enough to go away on a trip is often the first and most difficult hurdle for
cash-strapped travellers.
Incentive
based savings accounts are a great way of stashing some cash for your next
holiday as they tend to both require a minimum monthly deposit and discourage
you from making any withdrawals. By sticking to the account’s basic terms
and conditions, you effectively sign yourself up to a relatively simple savings
plan. By doing so you are rewarded with bonus interest which can go a
long way to making your trip even more memorable.
The RAMS Saver account is a great example of an
incentive based saving account. It has some conditions in order for
customers to earn bonus interest (on top of the variable base interest rate the
account offers). Firstly, customers must deposit at least $200 each month.
This could be as easy as getting a portion of your salary paid into the
account each month.
Secondly,
in order to be eligible for the bonus interest rate, customers must not make
any withdrawals each month. This effectively makes customers think twice about
whether they really need to spend money now or instead build up the spending
money for their trip. Bonus interest is only payable on balances up to $500K.
Apart
from the traditional savings account, new apps can help you stay disciplined
and save extra cash before your big trip. An example of this is the Raiz app
that can be a useful tool for savers who find it hard to stick to a financial
plan.
The
app helps in identifying areas of your spending where you can cut back, and
setting reasonable short and long term targets for yourself. Raiz allows you to
automate how much you save by allowing you to save & invest any amount on a
daily, weekly, or monthly basis.
Another
key feature of Raiz that helps relieve the stress of saving is Round-Ups.
Round-Ups takes any transaction you make on your credit or debit card, rounds
it up to the nearest dollar and invests the change into your portfolio. By
linking saving to spending, it is a great way of showing that you can save
without affecting your lifestyle.
Saving
on insurance
Travel
insurance is a must for any holiday. While it will involve an initial cost, the
cost of not having insurance if something goes wrong could be infinitely
higher.
Online
travel insurance specialists, InsureandGo, suggest buying directly from a
specialist to help cut out middle man fees on travel insurance. Buying your
insurance direct from an online supplier can work out cheaper, but make sure
you shop around for cover that is appropriate for you – not just cheap.
It’s
also recommended to read the terms and conditions and take note of any
inclusions and exclusions on your policy so you know exactly for what you are
covered. This should help you avoid running into any surprise costs down the
track.
While
most policies will cover you for standard items – like medical/hospital and
emergency, trip cancellation, liability, baggage. Before you purchase your
insurance think about what other unique areas you will need cover for.
Will
you be doing any risky sports or activities that required extra cover? Perhaps
you taking an expensive camera or renting a car? These are just some of the
things that you should take into consideration when choosing your cover so you
are not left out of pocket if something goes wrong.
Another
tip is to look out for discounts and promotions. Just like your favourite
clothing store, travel insurers also offer coupon and discounts. If you’re a
regular traveller, it may be worth signing up to their newsletters or checking
out their social media pages is a great way to find out about these limited
time offers.
Saving
on accommodation
For
those looking to pay less for accommodation and more for experiences, house and
pet sitting is the ideal option. By providing free pet care when you travel,
you can enjoy the opportunity to spend time with a pet and live like a local in
the places you visit.
You
could reduce the cost of your trip by over a third and help pet owners find
peace of mind while they are away from home. Instead of checking into a hotel
you can stay for free in homes across Australia and all over the world.
This
style of accommodation is an experience in itself and gives you the chance to
make connections with local people, discover off-the-beaten-path destinations,
and take advantage of the companionship having a pet can provide. By organising
house and pet sitting stays through a community like TrustedHousesitters, for
less than the cost of one night in a 3-star hotel, you could save thousands of
dollars on your holiday accommodation.
TrustedHousesitters
is an online community of pet lovers who engage in a mutually beneficial
exchange to ensure all members can find the freedom to travel. Providing a
simple solution to a universal problem, they help home and pet owners connect
with caring, verified sitters who offer free pet care in exchange for a free
retreat, because they want to spend time with pets when they travel.
Saving
on the road
Apps
are not only for saving before your trip, they can also make life a lot easier
when you’re out on the road. One way that apps can make your travel experience
better (and cheaper) is by helping you avoid those “tourist trap” restaurants
that give you inauthentic food for double the price of a true local feed.
Using
the Townske app, you are able to easily uncover the places that locals go to
again and again. These are the places that are doing amazing things, providing
amazing experiences and are often at or below prices of more touristy places.
With Townske, you could improve you travel experience and have the opportunity
to enjoy the true richness of cities.
Another
hot tip that could see you saving thousands over your travels is getting access
to an International Student Identity Card (ISIC). Full time students, teachers
and anyone under the age of 31, qualify for one of 3 lifestyle and discount
cards.
First
established in 1953, all bona fide students over the age of 12, regardless of
their nationality, race, gender or religion can purchase an ISIC card at an
affordable price. Via one single card, ISIC students gain preferential and
discounted access to products, services and experiences relevant to all aspects
of student life, from software licenses, cinema access to bookstores, public
transport, cafés and eateries and much more.
Whether
you’re staying put in Australia or heading off on an overseas adventure, these
internationally recognised discount and lifestyle cards are the real deal when
it comes to savings.
ISIC
gives you a choice of up to 42,000 lifestyle and travel benefits in over 133
countries, including more than 5,000 in Australia and New Zealand. For example,
you could get 20 per cent off your meals at over 2,500 restaurants, cafes and
takeaway outlets across Australia and New Zealand.
There
are also exclusive discounts on flights and other travel products through STA
Travel and negotiated discounts on train, bus, tram & ferry tickets around
the world. There is an ISIC app that can be downloaded to help you check for
discounts while you’re on the go.
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.
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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.
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