Creating a budget
Whether it’s a short break or an epic adventure, work out how much you need for your trip so you can get saving.
Work out how much you need to save:
It can be hard to know how much cash you’ll need to put away for your trip, especially if it’s a destination you’ve never visited before. To get you started, here are a few things to consider:
- Figure out a daily budget for your destination(s), then multiply that by the number of days you plan to travel for.
- Add on the extras, such as flights, travel insurance and specific activities that might cost extra.
- If you’re unsure, Lonely Planet has helpful price guides for most of the places on your bucket list.
Once you’ve figured out a daily budget, how long you’ll be travelling for, and any extra expenses, you’ve got your budget. Now you just need to start saving, and we’ve got some tips to help you get started:
- Set a timeframe to reach your savings goals. What’s the quickest you can manage it?
- Find out what you spend money on. Is it a necessity, or is it something you can get by without?
- What’s your income? How much can you spare to put aside each week?
- Make priorities! Cut out anything you don’t need, like those sneakers that caught your eye last time you went shopping.
- You could open a savings account. Set up a direct debit from your transaction account so you can regularly allocate a portion of your earnings to savings.
- And the most important thing – stick to it! The quicker you reach your goal, the better prepared you’ll be!
Have a buffer:
It’s a good idea to give yourself an extra buffer, for all those days you want to splurge. It’s also worth thinking about worst case scenarios, like losing your passport, missing your flight, or finding yourself in a situation where you lose a bunch of hard-earned cash. Here’s how you can save for a budget buffer
- Factor a few weeks into your savings timeframe so you can put in extra on top of your budgeted goal.
- To make this easier, you can automate your saving with a direct debit.
- If you don’t have time for that, you can pull your belt a bit tighter and add an extra margin of $20-30 on top of your weekly savings amount.
- It might be a good idea to save a bit extra on top of your goal, just in case there’s an emergency or you want more room to splurge. If you’re going on a super long trip, this contingency might have to be a bit more.
How we can help
We’re here to help you get your travel finances in order, so you can make the most of your next trip.
Don’t forget, we’re not aware of your individual situation or needs, so we can only give you general tools and tips. Make sure you consider the full story before you act on any information or advice.