Budgeting habits to relearn as the borders reopen

The return of international travel may mean hard lessons for those who aren’t sticking to good financial habits.

With the reopening of international borders, many Australians have started thinking about travel again.

However, personal finance expert Christopher Zinn told nestegg that there are a few budgeting habits that Australians may need to relearn before they go anywhere.

To begin with, he recommended that those looking to travel abroad begin preparing by getting a better sense of their expenses over the course of a year.

Learning to see where your potential savings opportunities lie can often be a necessary first step towards taking advantage of them.

“Set aside some money from each payslip for the significant outgoings, including your travel ones,” he said.

If possible, would-be travellers may even want to consider opening a dedicated account for them.

“The advantage here is that you won’t have to scramble to find the money for your next holiday – it will be sitting right there in your holiday’s account, ready to be accessed when you need it,” Mr Zinn explained.

Beyond your annual expenses, it may also be worth looking at how much you’ve spent on previous trips abroad.

While such an undertaking can feel daunting for those who typically don’t spend that much time budgeting, it can help you identify what expenses didn’t give you value or areas you could have spent less.

“An annual plan makes you feel in control before, during and after the trip. Feeling you’re not making any real sacrifice, you’ll enjoy your holiday even more,” Mr Zinn said.

Smart travellers will also want to keep a close eye on official government warnings, restrictions and regulations first, before and even during your trip.

“The rules change fast, and apart from feeling ‘safe’, you do not want to face avoidable costs, delays and uncertainty,” Mr Zinn said.

He recommended regularly checking in with the federal government’s smart traveller and doing your research when it comes to travel insurance.

“Some travel insurers now offer limited cover for COVID-19 if you, or someone you’re traveling with, tests positive to the virus. But there are several restrictions you need to consider, including if the country you’re traveling to is on the list of the government travel bans,” he added.

Article courtesy of Nestegg

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