Whether it’s a once in a lifetime trip or your annual escape, an overseas adventure can come at a cost. Plan ahead so that you can have the best time without money worries.
Step 1: Put together a budget
Figure out what the total cost is likely to be given your estimates of the following:
- Travel (airfares, cruises, trains, hire car etc.)
- Food and drinks
- Sightseeing and entertainment
- Travel insurance
If you’re happy with the projected amount that’s great. If it’s looking too expensive, think about areas where you could cut back and re-budget.
Step 2: Start a savings plan
If you want to speed up the process you can either consider making some sacrifices with your day-to-day spending and/or reducing the potential cost of your holiday.
You may not be able to save the entire amount but the more you save the less debt you will have to deal with when you come home. If you’re not going to be able to save the entire amount you need you can consider either putting some costs on a credit card or taking out a personal loan.
Step 3: Decide how you’ll spend your money
When you’re overseas there are a range of ways you can spend your money. These include:
There are various pros and cons for each of these options. Using a mix can give you flexibility when paying and give you a back-up option if anything is stolen.
Step 4: Consider travel insurance
A big part of the fun with an overseas trip can be dealing with the unexpected. But that unexpected may not always be a good thing. Consider taking out travel insurance to make sure you’re covered should something happen. Many credit cards also offer complimentary travel insurance, so this means it may not even cost you anything.
As with any insurance policy, make sure you’re familiar with the product disclosure statement before signing up as some providers may offer very different levels of coverage.