Time to read : 3 Minutes
When I joined Compare Club to write about mortgages, savings and all things financial it was a bit of a wake-up call.
I mean, how can I write about all of this without taking it onboard and putting it into practice? After all I can't really ask you to be better with your money if I'm not asking the same of myself.
Mission #3 – cut my travel costs
According to recent Commonwealth Bank study, Aussies are saving just over $5K this year for travel. The main reasons:
To get away and rest.
To see friends and family.
To explore new places.
Which makes sense considering that we've spent the best part of two years locked down and restricted as to where we could go to.
🌴 The last time I went away was just before lockdown to Bali. I taught a yoga retreat and then went to study at another straight after.
🛫 I usually spend about $5-7K a year on travel/accommodation but this is usually offset by being paid around $3-5K to teach a retreat a year.
🧘🏽 I always go to study yoga (as I am a bit of a yoga nerd too). So my trips tend to be cost neutral come tax time.
Old me: I used to pay for my travel on my credit card (I don't own one now) and then pay it back over the year.
New me: I save for my holiday instead which can I tell you (for me at least), is much calmer. But that might not be feasible for everyone.
💳 Credit cards can be an option if you pay it back on time.
And, if you take out a points-earning credit card, then pay for some of your holiday using it, you'll be able to "triple dip."
You'll be spending enough to be eligible for a points bonus, plus you'll earn more points on the card for each dollar you spend, that can then go towards reducing flight costs.
PLUS, bonus points, you could also potentially get travel insurance with it too.
The 10 ways I save and pay for travel
I plan ahead so that I know in advance what my expected costs are and if they are realistic for my income that year.
My big trip next year is to India for two months – I'll work remote during this time.
This will cost me $1.6K for return flights, $1.8K for accommodation (staying at a cafe/guest house – even cheaper if I table the diners at lunch), $1.5K for the yoga study and then about $50 a week for food (and that might even be too much).
2. Flight alert. As soon as I know my dates and destination, I do some research for an idea on prices and I always like to nab a deal! I find booking early and on sales definitely helps here.
I also like to do some insurance shopping at this point to get the right cover for my trip. I am immune-suppressed post kidney transplant so travel insurance is essential for me, if tricky!
Cars, trains and basically anything you can book ahead is also usually cheaper in advance too.
3. Flying light. I like to carry as little as possible.
Hand luggage is my favourite way to travel – yes, even flying overseas.
This means I worry less about missing gear, never take more than I need AND save on any nasty fees for extra luggage.
4. Food. On long haul flights, I like to take my own healthy snacks – I pack light salads, nuts and always carry a water flask (which I then fill up on the plane). I hate those tiny little water bottles you get.
It's also helpful when you get stuck in a lay-over and your hungry and a bottle of water literally costs $10.
If you have kids it's also a money and sanity saver too. Hungry tots are proper little gremlins.
5. Accommodation. This is one place that I am always happy to spend less but sensibly on. I love a bed & breakfast or simple guest accommodation.
This can save you 50% off a major hotel chain and you also get to meet the locals – bonus. In Mysore, India, if I rent a hotel room it is $134 a night, but a bed and breakfast place is only $23 a night. That's a big saving for even a short stay.
You could also consider a house swap or share, and travel with a buddy.
6. I put aside money every pay day for my trip.
This works out to about $200 a fortnight – and – this will be on top of my goal of saving $1.2K a month.
I have picked up a weekly yoga private at $100 an hour, so this will go to my tax deductible study-holiday fund.
Not everyone will be studying yoga but if you can combine travel with work or study, it can help at tax time.
7. Cook like a local. I always stay at a place that has a kitchen so I can make my own food.
Local markets will be cheaper than eating out every night.
It's a great way to explore an area and keep money aside for when you really want to splurge on a local delicacy.
8. Use the bundles... and see what deals you can get where ever you go. My accommodation comes with a free wi-fi, filtered water (a must in India) and breakfast.
It's also helpful and affordable to get a local SIM card when you travel. No one wants a big bill anytime!
Also ask around to make sure you get the best exchange rate you can too as rates can vary widely.
9. Share the costs. When I fly into Bangalore, I check with the (trusted and recommended) driver I have booked if I can split the fare with another yogi headed to Mysore. Sometimes you luck out and there are a few of you.
I do this all the time on holiday, I organise shared tuk-tuks to the shops, we split the fare and the costs across big items like a bag of rice.
It doesn't sound like much but, seriously, it all adds up to savings.
10. Combining work with pleasure. In India, I'll be working remotely, teaching online over the weekends and taking professional photographs of yogis. This way I get to study (4-6am each day), work and still save – even when I am away.
Where I work, quite a few team members have taken trips abroad to see family and holiday, all while working remotely.
It also means you can choose when you take your leave and use it more wisely.
I think travel is worth spending on
But that doesn't mean you have to pay top dollar or skimp.
🤓 Get organised early, set your budget and look out for the best deals for you.
🫶 I believe we all need breaks to reset ourselves.
🛒 Shop around, compare and ask your friends and network for tips!
This isn't a saving but it is worth saving for: $100 a week x 52 = $5,200.
💰Week #3
Savings: $1000/$25K goal Travel savings $200/$5.2K goal
🎁 Next week... I tackle my Christmas present costs.
