Tips for financing your next Aussie holiday

Thinking of going the Back o’ Bourke? The Whitsundays? Perhaps the top end? Or you might be thinking of doing the big lap around the coast? Whatever it might be, an Australian holiday is a great time for singles, families, and seniors. However, going away for an extended time means saving money – especially if there’s little income to be had on the road. Here are some tips for financing your next Aussie holiday without breaking the bank.

Plan your route and budget

Organisation is crucial if you want to save money for your epic Australian holiday. Planning ahead is essential if you want to prevent unforeseen expenses and minimise spending wherever you can. Rocking up at a hotel last minute could cause you hip pocket pain.

Be careful to plan your route well in advance of your trip. Select the cities and towns you'll visit, as well as your accommodation: whether you will camp, use an RV or caravan, or hotel accommodation. You won't have to spend additional money on your trip at the last minute if you have these aspects planned out in advance.

Sparing the credit card

Putting your entire holiday on the credit card – especially if you have five or six figure credit limits – may feel tempting. Some credit cards will “reward” you with free travel insurance or accommodation upgrades if you book the entire trip on plastic. However, you are paying for those rewards with high annual fees, high interest rates, and recurring interest (as we’ll explain in a bit.) That $100 on the credit card turns into as much as $120 as soon as the interest free period ends (that is, if you have one.) If possible, only use the credit card in emergencies or if you really can’t avoid it, such as at hotels. If hotels insist on a credit card, make sure you have the cash to pay off the balance immediately.

Taking out a personal loan

A lengthy Australian holiday may get pricey, especially if you're intending to invest in a new RV or caravan for future holidays. Even lengthy vacations can put a serious strain on your budget. You can get a personal loan for your trip, so you can protect your savings for real rainy days. A personal loan has many advantages over using a credit card – for one, the interest is much lower than a credit card. Second, each repayment your make helps pay off the loan completely; credit cards are revolving charges with fees and interest that accumulates if you only pay off the minimum.

Use apps to help you save

Even if you’re out on the road, you still need to pay your bills, rates, rent/mortgage, and other expenses. Your NetBank app or Mint can help you stay on top of your incoming bills by allocating funds where they’re needed most. It can also help you set up an emergency fund or “fun money” fund you can use for spending money on your trip. Other apps like Raiz or Spaceship can help you invest “spare change” into an investment account which usually beats traditional or even high interest savings accounts. It all happens automatically so you just “set and forget.”

With a bit of work, you can finance your next Aussie holiday with a minimum of fuss – and you’ll be experiencing our great country in no time!