A tale of a fateful trip – holidaying on a budget

Wilson Luna

Let’s step back in time to 1912 … for just £870 (the equivalent of around $112 000 today) you can get a first-class suite with access to top-of-the-range amenities and the finest restaurants on one the most exciting cruise ships in the world. You’re about to embark on the trip of a lifetime, but unfortunately, the ship is the Titanic, which just goes to show that the best holidays aren’t necessarily the most expensive ones. This is an idea that Australians are embracing enthusiastically – according to research by AAMI 35 per cent of us are on the lookout for better holiday deals rather than letting tighter budgets force us into skipping our getaways altogether.

But what’s the best way to get more for your money? Planning ahead is a great start. You’ll have less flexibility when choosing your flights and accommodation the closer you book them to your departure, so it really pays to start deal hunting early. Generally it’s best to do your booking online – you can save up to 30 per cent just by going online and you can often save even more by keeping your eyes open for package deals and group discounts. Websites like www.zuji.com, which let you compare different airlines, can be useful for taming those flight costs and there are any number of sites that offer accommodation comparisons at the click of a mouse. If you have left it to the last minute, don’t despair! You can still get a great deal on sites like www.lastminute.com and www.wotif.com.

When you take your holiday can also make a lot of difference to the price – some holiday destinations are more popular at certain times of the year, and prices fluctuate accordingly, so consider travelling off-season or midweek. Balancing the price against your plans can be a bit tricky – there aren’t many places where you’ll be able to hit the ski slopes in the middle of summer – but if you can avoid the peak season you can save up to 50 per cent on your trip.

But there’s more to holiday savings than booking cheap flights and rooms. The urge to splurge is high when you’re travelling, temptations abound (restaurants, souvenirs, attractions) and it can be tough to say no. But even if you’re on holiday your budget shouldn’t be! Decide on a reasonable allowance for each day and stick to it. As with all budgets, it’s important not to overdo it, so make sure you factor in a few nights out and the occasional souvenir because if your holiday budget is ruining your fun it’s not doing its job. Having a holiday budget that you can spend guilt-free and will stop your dream holiday from turning into a financial nightmare is vital if you’re going to enjoy yourself.

If you’re really strapped for cash why not consider a working holiday? There are a variety of programs available that will take you around Australia – or the world – letting you earn an income to offset your travel costs. For working holidays close to home the Australian JobSearch website has some great info and the Department of Immigration website will give you all the details you need if you’d like to take your working holiday OS.

If a working holiday isn’t an option and travelling really is beyond your means at the moment, why not try being a tourist in your local area? Holidaying at home is a great way to see the sights on your own doorstep, and the money you’re saving on transport and accommodation can go toward having more fun. Set yourself a spending limit and visit some of those places you’ve passed a hundred times but have never had the time to explore – particularly if they offer free entry. You’ll be amazed how much fun you can have for nothing and you get to stay in the comfort of your own home each night!

So, a good holiday isn’t about staying in the best hotels and eating in five star restaurants – it’s about having new experiences and creating wonderful memories that last a lifetime. Keeping your expenses under control and holidaying on a budget will allow you to enjoy more adventures, and you won’t get that sinking feeling that comes with spending years having no fun while you pay off a single expensive trip!

Author's Biography

Wilson Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration