Saving for a holiday

There's nothing quite like the excitement of heading off on a worldwide adventure.

Whether it's a simple nip abroad, or a full year hiatus, each one needs careful saving to ensure that you don't spend a lifetime paying off that once in a lifetime trip.

Raising the cash

Depending on your plans, holidays can range from as little as $500 for a weekend domestic trip to $15,000 for a round the world adventure. With such a large financial goal in mind, a high interest savings account is a must. Tucking away small and unexpected windfalls such as tax returns, bonuses and gift money, as well as your regular monthly deposits, is a valuable way of saving for your holiday.

A good spring clean can also reap rewards. Turn that old handbag into a hire car, or denim jeans to a diving expedition by selling your unwanted items online at eBay or Trading Post. It all counts!

Set a budget

Without careful planning those hard earned savings can disappear in a matter of days not months. Research your destinations, and consult well respected guides such as Lonely Planet to give you an indication of the likely costs you will incur.

Factor in incidentals such as accommodation, meals, side trips, flights and your kit. More importantly set a daily allowance that you will live on – it will help stretch that holiday. This careful budgeting ensures that you won't blow out and start to live beyond your means.

Alice, a backpacker, says, "I have just $40 a day to live on. This pays for my local travel, food and incidentals like toiletries. I budget carefully for all those big ticket experiences such as skydiving, plus I travel with a friend so we can share accommodation costs. I want to keep travelling for as long as I can!"

Cut back on spending

With your trip of a lifetime now about to become a reality, it's a good time to learn to manage on a lower income. Cut back your spending, cook healthy meals versus getting take out. Entertain friends at your home instead of fancy restaurants.

Neil, 30 says, "My wife and I moved to a $50 dollar a week spending rule. We had just $70 each to pay for lunches, coffees and buses. It soon curbed our excess lifestyle, and by the time we left on our round the world trip we were prepared for the financial realities of backpacking".

When to go

It's called "peak season" for a reason. Everyone wants to travel at that time. Consider booking on shoulder or low seasons. It will be cheaper and often you can save thousands by moving your dates by just one or two weeks.

Tricks of the trade

Backpackers and travellers you meet on the road are the best source of information. They know the inside track, which buses to catch, where to stay and cheap places to eat. Ask around, and follow some sure fire rules: book accommodation with breakfast included, take bus trips which include meals, travel through the night so as to save on accommodation and share meal costs with new pals.

Help with your budget planning

A realistic budget makes it easier to achieve your savings goals and puts you in control of your finances. Our budget planner can help you create a budget. You may also want to view our tips on budgeting.

Find the right account

The NetBank Saver and GoalSaver savings accounts are designed to help our customers save for short-term goals, like a holiday. The NetBank Saver offers a high rate of interest with no bank fees*, while a GoalSaver account offers a great variable bonus interest rate, as long as you increase your balance by at least $200 a month (excluding interest) and make no more than one withdrawal. Compare the rates, features and fees of these accounts with our comparison table.

Other options

A personal loan is a simple and quick way for you to get the money you need for your holiday. You could borrow as little as $5,000 and get same-day funding#. Choose from a fixed rate or variable rate.

Going abroad?

If you’re planning on heading overseas, there are a few things you should know before you go.

Accessing money overseas

• Credit cards
  Using a credit card overseas provides plenty of travel benefits. Our Gold and Platinum credit cards might be suitable for your trip away. Purchase your travel tickets with our Platinum or Gold card and receive free comprehensive travel insurance and free travel accident insurance of up to $250,000 for your trip (conditions apply).
• Debit MasterCard or keycard
  Your Commonwealth Bank keycard provides direct access to your funds in over 80 countries through the Maestro and Cirrus electronic networks.
• NetBank abroad
  Transfer funds to people overseas or to your keycard linked account while you are away. Also, view and pay bills using BPAY^® and BPAY View^TM wherever you are in the world.
• Travel funds
  You can avoid money hassles overseas by organising your finances before you leave. A Travel Money Card gives you immediate access to your money in up to six currencies using the one card. You can also save time by buying your foreign cash before you leave on your trip. Travellers cheques are another option for overseas travel offering both security and convenience.

 

 

• Important information
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  The advice on this website has been prepared without considering your objectives, financial situation or needs Because of that, you should, before acting on the advice, consider its appropriateness to your circumstances. Please view our Financial Services Guide.
  
  Terms and conditions for the transaction and savings accounts mentioned are available online or from any branch of the Commonwealth Bank.
  
  The Product Disclosure Statement and Conditions of Use (PDF 208KB) issued by Commonwealth Bank of Australia for Travel Money Card should be considered before making any decision about this product.
  
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