If you’re like many of the other retired Australians suffering from a bad case of the travel bug, then you’re probably itching to hop on a plane as soon as possible and take to the skies!
But before you do this, it’s extremely important to make sure that you have enough money to finance your overseas holiday – especially if it’s going to be a long one.
One of the first and most important steps is to create a strict and comprehensive savings plan to set you on track. From there it’s all about disciplining yourself, and leaving enough to pay the household bills.
Seeing a financial planner before you begin saving for your trip means that you will be able to get a clear picture in your mind of how much you need to stow away. Speaking to a financial planning professional can also help you to get advice on credit cards or overdrafts and how they will affect your credit rating.
This way, you can also find out if spending an extended amount of time overseas will have any effects on your retirement income payments or benefits that you receive.
A lot of planning is involved in the travel process – not just for the type of hotel you’ll be staying at, or which flight you’re going to take, but also how you’re going to spend money once you reach your destination.
“Preparing financially for a holiday doesn’t end after you’ve purchased your plane ticket and covered your accommodation. You need ready access to your funds for known expenses as well as any surprises that your adventure might throw at you,” said Suncorp Bank executive manager Craig Fenwick.
When planning what type of money you are going to be bringing with you overseas, you may want to consider multiple options. Using a pre-loaded debit card will give you peace of mind knowing that you cannot overspend. However, it may be a good idea to also take a sum of cash in foreign currency with you for places that don’t accept debit, and a credit card for emergency spending.
“Having a credit card as backup is still a good idea and can help to get you out of an unexpectedly expensive situation, or of course take advantage of a spur-of-the-moment experience, adventure or bargain,” said Mr Fenwick.
we can help
If you are wondering where to obtain financial advice, we can help. Why not get in touch by calling 1800 626 881 or by using the ‘contact us’ tool on our website.