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Estimated reading time
5 minLearn all about
- What you need to consider in your travel budget
- 5 money-saving hacks for your holiday
Travelling overseas can be a great time for solo self-reflection, adventure or hanging out with those nearest and dearest to you who live far away.
When you’re financially ready for a big holiday, the trip will be more enjoyable because you won’t have to worry about where your money’s going. And that’s what we like to see!
Dive in to discover simple tips and tricks on how you can make a travel budget and save for your globe-trotting adventure.
So, how do you save and budget for a holiday?
To start saving for your big holiday, come up with a goal. Whether it’s a simple $10k that can cover most expenses or another, specific amount, having a savings goal (and a dedicated savings account to boot) can help you bring your travel dreams to life.
As you’re slowly reaching your savings goal, it’s important to build a travel budget that includes:
- Flights and other modes of transport for getting around.
- Your passport, visa and other important documents to help you travel from one country to another.
- Accommodation and food – you know, the everyday stuff.
- Travel insurance, just in case something happens to you (or your luggage).
- An emergency buffer for any unexpected expenses, like rebooking a flight or finding new accommodation on the fly.
- Expenses you’ll need to pay while you’re abroad. For example, add two months of expenses into your budget if you’re going to be away for that length of time.
And don’t forget to consider exchange rates. Travelling to a country where the exchange rate isn’t ideal might cut into your holiday savings and budget. So it pays to do your research into how much it’ll cost to convert currency and how it will impact your finances.
How to budget for overseas travelLouis: No. I've got toothpaste. How many socks do I have? I can't handle this. My berets?
Jade: Maybe you’re missing a good budget.
Louis: Oh – Jade, what are you doing here? Scared, but also help me. I'm so stressed.
Jade: I'm here to help you pack. Well, at least help pack your mind full of knowledge about exchange rates, travel cards, budgeting and travel insurance.
Louis: Where do we start?
Louis Voiceover: ANZ presents How to budget for overseas travel. It's okay. I didn't know either.
Louis: I haven't gotten my travel insurance yet. I feel guilty. But is it 100% necessary? Do I need it?
Jade: It's highly recommended to get travel insurance and make sure you're covered with health insurance when you're traveling, too. We know that travel insurance usually covers things
like cancelled flights or lost baggage, and it may even cover medical care if you need emergency treatment overseas.
Louis: I just wish I hadn't left all of this to the last minute. I feel so silly.
Jade: Well, it is usually better to do it prior to leaving and do it in advance. In fact, the more things you can pay before you go, the more likely you are to get good deals and you won't run the risk of blowing your budget while you're overseas. Things like flights and accommodation can end up getting more expensive as time goes on.
Louis: Honestly, that does make a lot of sense. Like paying a little now to avoid paying a lot later.
Jade: That's right. And if you have a credit card, it's worth checking if there's any travel insurance attached to that as well. Remember to check what it covers and what it doesn't.
Louis: Come to think of it, credit cards. Should I be using my Aussie bank card when I'm overseas? Or just convert everything into cash before I leave?
Jade: There's a couple of ways to take money over. You could keep using your bank card, but it's worth checking if there are any fees or charges that might apply and what kind of exchange rate you'll get. Some cards might hit you with extra costs every time you use it. And don't forget to notify your bank if you travel. Otherwise, they could flag it as fraud and then you’re without access to your money and you'll have to call them to unlock your card.
Louis: We wouldn't want that.
Jade: Your other option is to load money onto a travel card, and that locks in your exchange rate before you go. So you won't risk losing value if the exchange rate fluctuates. Most cards let you load multiple currencies onto the card if you're visiting multiple destinations too.
Louis: Oh, so kind of like a card that speaks multiple languages? Un peu français, peut-être. Oui, oui? Non non? Baguette.
Jade: Oui! But remember, it can be good to have a bit of cash on hand just in case you lose your card or you're in a situation where you need physical cash.
Louis: Oh, and when it comes to budgeting, what sort of things should I be looking out for?
Jade: Remember to budget for visas, flights, accommodation, and it is probably good to have an emergency fund as well because travel can be full of surprises. What if you lose something valuable while you're there?
Louis: The only thing I plan on losing right now is the stress, all of the anxiety hanging over my head. Good vibes only.
Jade: Yes. Another tip is to set a daily spending budget, for example, $100 a day for food and for fun. Some days you might spend less, and some days you might spend more. But overall, you get a good sense of what you need and it's also a lot easier to keep an eye on your everyday spending.
Louis: Well, honestly, this has been so helpful. I love you. Are you sure you don't want to come? I wish I could pack you in my suitcase and just take all this advice with me.
Jade: Oh, I'd love to come
Louis: I think there's a little bit of space above the rainbow unicorn. But also, where does one go to get help? Because a lot of people won't be as lucky to have you next to them.
Jade: ANZ have a couple of helpful guides on their website and you can also hop on to SmartTraveler.gov.au to get some government advice on each destination.
Louis: Well Jade, this has been amazing and you know I love chatting with you, but there is a lot that I need to do in terms of packing. While I do that. If you found this helpful, subscribe to our channel and watch me as I upskill on a whole lot of other financial wellbeing topics. Oh, and don't forget to click the links in the description for some more handy resources. Shall we try?
Jade: All right, let's go. Yeah.
Louis: Okay, great. So what you’ve got to do is just... Put a foot in?
Jade: Yeah, foot first, right?
Louis: Oh, yeah no, we're onto something.
Jade: Yeah.
Louis: Yeah. Oh, come on. Do you trust me?
Jade: No.How to budget for overseas travel03:56Brain hack
Mental accounting is when we categorise and treat money differently based on factors like where it came from, how we’re going to use it, or how it makes us feel. So you might allocate money in ways that don’t consider the big picture. When planning a holiday, you might focus on the money you’re using for your trip because you’re excited about it (naturally) while neglecting other financial considerations. By building a strong budget and factoring in all of the costs – even the not-so-exciting ones – you can plan smarter knowing your holiday will be stress-free because you’re not neglecting your other financial obligations.
5 money-saving hacks for your overseas adventure
If you’re ready to go galivanting across the globe and save some money along the way, then we’ve got some handy hacks you can follow:
1. Keep track of your spending as you travel
Whether it’s through your bank app, a spreadsheet or a note on your phone, tracking your spending while travelling can help make sure you don’t accidentally overspend. Plus, it can help you stay on top of the budget you made before you hopped on a plane. It could save you from having to buy an additional suitcase because you bought one too many souvenirs!
2. Bring a reusable water bottle
Bottled water might be a convenient solution if you’re thirsty and need a drink straight away. But buying bottled water, especially from tourist hot spots like amusement parks, can quickly add up. So why not bring a reusable water bottle with you instead? Not only will you be saving money (that you can spend elsewhere), you’ll also be doing your bit for the environment.
3. Think about when you want to travel
Travelling during the off-peak season can help reduce overall costs for flights, accommodation and even tickets to events and experiences. And to sweeten the deal, there might also be fewer people travelling at this time, meaning you can explore without worrying too much about crowds. You can also plan your trip around tax time, so you can plan around coming home to a hefty tax return for an instant cash boost when you land on home soil. And if your trip overlaps with tax time, you can get all your ducks in a row before you go so you can submit from overseas and hopefully get a return.
4. House-sit for a local
If you want to have your own private space (and a comfy bed) while overseas, then consider house-sitting. You’ll be doing a good deed for someone and possibly their pets. And it will likely be cheaper than staying at a hotel. Sure, you might need to pay a sign-up fee to register as a house-sitter, but subscriptions to services like this often last for 12 months meaning you can take multiple trips to different destinations.
5. Be savvy about where you eat
Instead of dining at a restaurant, you could opt for local eats from street food vendors. This will give you an inexpensive and authentic taste of the country’s culture. You can also shop at local grocery stores for snacks and simple meals to take with you. Still want to eat at a local restaurant? Then try out a restaurant in an area that isn’t tourist dense. Another tip is to buy local ingredients and cook from the comfort of your accommodation.
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Louis: No. I've got toothpaste. How many socks do I have? I can't handle this. My berets?
Jade: Maybe you’re missing a good budget.
Louis: Oh – Jade, what are you doing here? Scared, but also help me. I'm so stressed.
Jade: I'm here to help you pack. Well, at least help pack your mind full of knowledge about exchange rates, travel cards, budgeting and travel insurance.
Louis: Where do we start?
Louis Voiceover: ANZ presents How to budget for overseas travel. It's okay. I didn't know either.
Louis: I haven't gotten my travel insurance yet. I feel guilty. But is it 100% necessary? Do I need it?
Jade: It's highly recommended to get travel insurance and make sure you're covered with health insurance when you're traveling, too. We know that travel insurance usually covers things
like cancelled flights or lost baggage, and it may even cover medical care if you need emergency treatment overseas.
Louis: I just wish I hadn't left all of this to the last minute. I feel so silly.
Jade: Well, it is usually better to do it prior to leaving and do it in advance. In fact, the more things you can pay before you go, the more likely you are to get good deals and you won't run the risk of blowing your budget while you're overseas. Things like flights and accommodation can end up getting more expensive as time goes on.
Louis: Honestly, that does make a lot of sense. Like paying a little now to avoid paying a lot later.
Jade: That's right. And if you have a credit card, it's worth checking if there's any travel insurance attached to that as well. Remember to check what it covers and what it doesn't.
Louis: Come to think of it, credit cards. Should I be using my Aussie bank card when I'm overseas? Or just convert everything into cash before I leave?
Jade: There's a couple of ways to take money over. You could keep using your bank card, but it's worth checking if there are any fees or charges that might apply and what kind of exchange rate you'll get. Some cards might hit you with extra costs every time you use it. And don't forget to notify your bank if you travel. Otherwise, they could flag it as fraud and then you’re without access to your money and you'll have to call them to unlock your card.
Louis: We wouldn't want that.
Jade: Your other option is to load money onto a travel card, and that locks in your exchange rate before you go. So you won't risk losing value if the exchange rate fluctuates. Most cards let you load multiple currencies onto the card if you're visiting multiple destinations too.
Louis: Oh, so kind of like a card that speaks multiple languages? Un peu français, peut-être. Oui, oui? Non non? Baguette.
Jade: Oui! But remember, it can be good to have a bit of cash on hand just in case you lose your card or you're in a situation where you need physical cash.
Louis: Oh, and when it comes to budgeting, what sort of things should I be looking out for?
Jade: Remember to budget for visas, flights, accommodation, and it is probably good to have an emergency fund as well because travel can be full of surprises. What if you lose something valuable while you're there?
Louis: The only thing I plan on losing right now is the stress, all of the anxiety hanging over my head. Good vibes only.
Jade: Yes. Another tip is to set a daily spending budget, for example, $100 a day for food and for fun. Some days you might spend less, and some days you might spend more. But overall, you get a good sense of what you need and it's also a lot easier to keep an eye on your everyday spending.
Louis: Well, honestly, this has been so helpful. I love you. Are you sure you don't want to come? I wish I could pack you in my suitcase and just take all this advice with me.
Jade: Oh, I'd love to come
Louis: I think there's a little bit of space above the rainbow unicorn. But also, where does one go to get help? Because a lot of people won't be as lucky to have you next to them.
Jade: ANZ have a couple of helpful guides on their website and you can also hop on to SmartTraveler.gov.au to get some government advice on each destination.
Louis: Well Jade, this has been amazing and you know I love chatting with you, but there is a lot that I need to do in terms of packing. While I do that. If you found this helpful, subscribe to our channel and watch me as I upskill on a whole lot of other financial wellbeing topics. Oh, and don't forget to click the links in the description for some more handy resources. Shall we try?
Jade: All right, let's go. Yeah.
Louis: Okay, great. So what you’ve got to do is just... Put a foot in?
Jade: Yeah, foot first, right?
Louis: Oh, yeah no, we're onto something.
Jade: Yeah.
Louis: Yeah. Oh, come on. Do you trust me?
Jade: No.
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