We all know that saving for that long-awaited holiday can be difficult, but it might not be as hard as you think. Here are some factors to consider and suggestions to help you on your way.
Work out your travel budget
The easiest way to work out how much money you’ll need for your trip is to work out a daily estimate of your expenses and multiple that by the number of days you’ll be there. For example, let’s say you budgeted for expenses of $300 a day and you were going for two weeks, your budget would be $3600 (300 times 14).
Daily costs you’ll need to consider are:
- the cost of travel
- transport (bus, taxi, train etc.)
- food and drinks
- phone and internet
- activities and tours
- souvenirs and big purchases
- splurge money.
You would also need to factor in non-daily expenses like flights, insurance and the cost of visas. Once you have that figure, combine it with the daily budget for a good indication of how much you will need to save.
With travelling, things don’t always go to plan, so it’s best to try save a little more than your travel budget to allow for emergencies or changes to your travel plan.
Building your savings
Besides opening a dedicated savings account or a term deposit, the best way to build your savings is to create a budget that provides a surplus every month. It’s not the easiest thing to do, but if you are able to stick to a budget, you’ll be rewarded with enough money to fund your overseas travel.
Redrawing on your home loan
Are you ahead with the scheduled repayments on your home loan? If you’ve put in a bit extra each week and are in the black, you could consider a loan redraw. While it's a less common way of paying for a trip, it’s money you’ve already set aside.
However, it’s important to keep in mind there can be restrictions – so it’s best to check your eligibility by having a chat to a banking specialist at one of our branches or to call us on 13 78 79 to discuss your redraw options.
After you redraw money from your home loan, you must continue to make your regular repayments. But you must also remember that the interest part of your repayment will increase because you are now paying interest on a higher loan amount.
NAB Visa Debit cards
NAB Visa Debit cards give you easy and secure access to your money – wherever Visa is accepted in the world. Unlike a credit card, using a debit card means you won’t have to worry about high credit interest rates, or paying off any holiday debts.
If you use a NAB Platinum Visa Debit card, you won’t be charged a foreign currency fee on your international purchases. And if you have spent at least $500 on pre-paid transport, tours, and/or accommodation on your NAB card and you were 90 years or under before you take off, you could be eligible for complimentary overseas travel insurance. For the full list and any limits and excesses that apply, please read our NAB Card Insurance Policy Information Booklet (PDF, 440KB).
Don’t forget to check our fees guide when travelling overseas using any of your NAB cards.
For more handy information, head to our Travelling overseas page.