Budgeting tips for travel

The best way to ensure you are able to have the experiences you want is to budget for your travel, whether it’s the caravanning road trip, an interstate holiday or an overseas trip.

This will allow your trip to last as long as possible without having to worry about running out of money.

Travelling can be expensive, which is why these budgeting tips will ensure a smooth holiday.

1. Food

Make a food budget for you and whoever else you are travelling with.

If it is for two people, you may only need to put aside $150 for a grocery shop once a week.

If you are caravanning around Australia, meal planning or bulk cooking can also be a money saver.

In really remote areas, you may find some items more expensive than in suburbia and towns.

If you are looking to fine dine on your trip, make sure to have an “extras” food allowance prepared for any restaurants and cafes you visit, or for your daily coffee.

If you are travelling overseas, you may opt to taste the delicacies of overseas cuisine.

Your extra allowance could be around $200 a week, which would cover around three food outings for a couple.

Be sure to adjust the budget for how expensive food is at your actual destination, for example, French cuisine is known to be more expensive to purchase compared to food in Spain or Portugal where tapas can be quite affordable.

2. Fuel and transport

Mapping out your trip can give you a vague idea of how much fuel or travel will cost.

Fuel is expensive in general, let alone for a massive caravan or driving trip.

You will find fuel to be one of your biggest expenses when travelling.

Fuel vouchers on the bottom of grocery or other receipts can be lifesavers when travelling, but utilising fuel comparison apps for your mobile phone can also help you to pay the lowest price.

Use Google Maps to give you an estimate on the kilometres you will travel between locations and calculate that against the current petrol prices.

If you are travelling via trains, buses, trams, or personal drivers, this can cost a lot as well, so it should be well accounted for in your holiday budget.

It may help pre-organising part of your travel, like bigger train trips or overnight buses, so it doesn’t impact your travel budget while you are there.

3. Accommodation

Choosing your accommodation carefully can save you a lot of money.

There are many free or low cost camping spots across Australia, as well as competitive caravan parks.

If you organise your travelling route around these lower cost accommodation options, it can allow you to put your money elsewhere.

Similarly, if you are travelling overseas, most countries have a variety of cheap accommodation available like hostels or house shares.

If you aren’t looking to share rooms with others, there is still plenty of cheap accommodation that would meet the needs of one or two people.

Using travel websites can be really helpful when comparing different accommodation options.

4. Unexpected costs

An emergency kitty can save you a lot of money in the long run if you have a fund to pull from when something unexpected occurs.

This money could cover any car or caravan breakdowns including towing, medical emergencies or unexpected bills, last minute accommodation, or an unexpected flight cancellation or double booked hotel room.

Sometimes your trip doesn’t always go to plan, so the best thing you can do is know that you have money available in case of an emergency.

Even if there is an emergency, at least you know you won’t have to cut your holiday short to cover it.

5. Bills and payments

Just because you are travelling doesn’t mean your bills or taxes are on holiday too!

Be mindful that you will still need to pay your mortgage, phone bills, council taxes, and any other house payments while you are away.

These expenses should be considered in your overall budget.

6. Experiences

If you are wanting to get involved in new experiences, putting money aside for those activities can make sure it’s not cutting into your budget.

It can be a good idea to have money ready for experiences you already know are on your bucket list, as well as extra for any unplanned experiences you want to try.

This funding can be for entering national parks or activities such as swimming with dolphins in Western Australia, a hot air balloon ride over the French Loire Valley or taking a camel ride through the Sahara Desert in Morocco.

When travelling, you may come across the most exciting experiences that you never knew existed, so setting aside money for these spontaneous activities can make sure you experience your holiday to the fullest.

7. Travel off-season

Travel, accommodation and tourism often come with a “peak season tax” meaning you’ll pay more during the busiest time of the year.

You may find accommodation or activities cheaper during the off season.

Although, this is very dependent on the country, where you are in the country, and the weather conditions of the country.

Budgeting in advance of your holiday, and doing all the research needed to inform your budget, will mean you get the most value for money and are ultimately able to enjoy the best experience.

8. Regular income

Renting out your home can provide you with disposable income or take your mortgage payments off your budget.

People also find this a good option because they don’t need to have family or friends watch their house for them while they are away.

In cases like this, it could be a good idea to go through a rental management agency and put in place a tenancy agreement that can protect you and your property, as well as the people living in your home during this time.

Some companies may not accept a house listing that isn’t for a reasonable period of time, for example, a property manager would be more open to managing a six month lease period than a month long lease.

Alternatively, another option is house sitting, where you pay someone to live in your house and take care of it while you are away. Of course, this option costs you money rather than the other way round.

Using your biggest asset, your home, as a source of regular income

The rent you earn could be combined with any superannuation payments you are living on to fund a very comfortable lifestyle while you travel and give peace of mind you are able to afford any extra costs. Your is an option that many retirees find works well for them while travelling to fund more experiences than what they would be able to afford on savings alone.

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