Start saving for your overseas holiday, it could come quicker than you think

We first caught wind of the potential for overseas travel when New Zealand Prime Minister Jacinda Ardern visited our shores just a few weeks ago.

There has been little talk of any trans-Tasman travel since that time, but this week the tables have turned, with the Trans-Tasman Safe Border Group working on a draft proposal about how to open the borders between Australia and New Zealand.

The draft is expected to go to the federal and NZ governments by early June.

“We are very fortunate to now be in a position where our governments can even contemplate the safe re-opening of the trans-Tasman border, for the benefit of our communities and economies,” said co-chair, Scott Tasker.

“Our aim is to put forward a detailed set of recommendations that safely manage any health risks, while also allowing Kiwis and Australians to travel to each country without the need for a 14-day quarantine.”

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Strangely, this could happen before interstate borders open, but would provide a much needed economic boost to both countries’ tourism sectors, not to mention economies in general.

So, while it may be some time before you can travel to America or other places of international choice, this is a great step forward for Australians who have been in lockdown and will soon be able to get out.

6 ways to save for your holiday

1. Work out the upfront costs

It may only be New Zealand you’re going to (at this stage), but New Zealand is a beautiful place and full of adventure and it’s well worth spending your money there. The first thing you need to do then before you go is work out all associated costs. These will include flights, accommodation, car hire, meals, tours and travel insurance. Once you know what the costs are, it’s time to start a budget.

2. Start a budget

A budget, will enable you to realistically afford to save. Within your budget, work out your incomings, your outgoings, and the estimated amount of money you think you will need to enjoy yourself on holiday and how much you will need to put aside as savings. If you find your outgoings are a little too high, have a look at what non-essential items you can cut out of your daily or monthly expenditure. Do you need that extra coffee? Do you need both Stan and Netflix. There’s likely to be cuts you can make, that will put you on a plane out of Australia.

Use the InfoChoice Budget Planner Calculator

3. Budget for emergency funds

It is worth budgeting for emergency funds. Your insurance may cover any accidents you have, but there will likely be an up-front medical cost if you do injure yourself. There may also be other emergency costs that pop up including unexpected car rentals or travel costs. It’s always best to go away with more money than you need. And who knows, if you come back with emergency funds intact, you could put that money into a Term Deposit or High Interest Savings account and start saving for the next holiday, when you will most likely be able to travel further abroad.

4. Book early

Usually, an early booking leads to cheaper prices. This isn’t always the case, but it’s worth checking out flight costs a couple of months before travel. The closer you get to the travel date, the likelier it is that you’ll be paying more for your flight. The book early theory also applies to any tours you would like to take during your holiday.

5. Open a holiday account

Many banks will allow you to open multiple savings accounts. You can compare accounts with InfoChoice to determine which account best suits your needs. For instance, you could open an account with a high interest introductory period, an account that links with your other accounts with the same bank or an account that rewards you for making regular savings contributions. Not only would a specific savings account help you put ‘do not touch’ money aside, you might also make a little bit more in interest.

6. Choose the right money exchange

Where and when you exchange your money, could lead to great savings. You can usually withdraw money at an overseas ATM for a fee, however, if you do take the exchange route, make sure you change your money at a bank after arrival or keep tabs on what the money exchange rate is and choose the best one. Try to avoid exchanging your money at airports and hotels where the rates are higher than average.

This update is not financial advice. This article is general news and information.

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