3 steps to avoid the travel black hole

Author: ME

Published at: 1/4/2017 11:31:21 AM

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Explore the world, embrace new experiences, and arrive home with your finances in great shape. It can be done!

The call of foreign lands, the thrill of new destinations….it seems the wanderlust of globetrotting is alive and well among Australians.

Aussies are renowned for their love of global travel however, along with great memories and a suitcase full of souvenirs, 40% of global travellers arrive home with their finances in poor shape.

Returning to everyday life after a few weeks or months of overseas adventure can be hard enough, but it’s even more challenging if you find yourself strapped for cash – or worse, facing a burden of holiday-induced debt.

Happily, three simple steps can be the key to avoiding a money black hole while travelling.

  1. Set a daily spending limit
    First, map out a daily spending allowance – fewer than half of us do this. Without a clear daily spending limit it’s all too easy to blow your travel money in the early days of your trip and then find yourself relying on the generosity of friends or high interest credit cards.

  2. Know the costs you’re up for
    For a firm idea of what you’ll be up for in basic expenses like, say, dining out, head online or speak with a friends who have made the journey before you. This is an important step because we found 52% of Aussie travelers underestimate their travel costs – a figure that rises to 63% among Gen Ys, who are more likely to be exploring the world for the first time. 

  3. Prepay before you jet away
    Where possible, prepay essential expenses like accommodation and transport fares. It’s a great way to secure early bird discounts, leaving you more to spend on the important things like unforgettable experiences.