16 Nov Six Ideas To Enjoy Your Next Overseas Holiday Without Going Broke – Part 2
Here are more ideas for you to have a great experience travelling while still reaching your financial goals.
Make sure you read Part One Of Six Ideas To Enjoy Your Next Overseas Holiday Without Going Broke here.
- Use Groupon
Have you heard of groupon or something similar?
Groupon is one of my favourite websites for travel, especially if you want to take a short local break.
If you haven’t used Groupon before, go ahead and subscribe. You can grab some great deals on there and it can inspire you for places you can travel.
I know there is some concerns about the quality of some of these hotels and I do believe this concern is justifiable.
Make sure you do your own research on the hotels or companies you are travelling with before you make any purchase.
Make sure you read the fine print as well on any deals, especially dates you need to travel by.
But if you are smart and do your research, you can save yourself a fortune.
- Use credit card rewards, but be careful
This is no secret but credit card companies are desperate for your business.
A lot of them offer significant frequent flyer bonus if you spend a certain amount of money with them within the first 30 or 90 days.
The first credit card I got with a big 4 bank was offering 50,000 frequent flyer points if I spent $1,500 within the first 30 days.
This enabled me to get from Melbourne to Queenland and back – twice! Once I spent the $1,500 and got the frequent flyer points, I cancelled the credit card.
Didn’t pay any fees (I requested the first 12 months of annual fees to be waived, little trick there) and I didn’t pay any interest (as I repaid the money within 45 days).
Rise and repeat.
I have a financial planning colleague who took this to the extreme and got 200,000 points, which got him to Europe for free!
But you need to be cautious.
Firstly, everytime you apply for a credit card (not obtain, apply) for a credit card, it impacts your credit score. This may impact your ability to obtain a loan in the future, especially a mortgage.
Check your credit score for free on a regular basis to ensure you still have a positive score.
Secondly, banks are tightening up on this (one of the drawbacks of the royal commission and other enquiries) so the deals are becoming a bit harder to find. But they are definitely still there.
Thirdly, it is very easy to get addicted to credit cards and paying for things with other people’s money.
All of a sudden you have $5,000 to $10,000 on your credit card and paying 20% interest on this and you will be in a spot of bother.
Pay off and cancel your credit card the moment you receive your points, using the money you have set aside with your budget (refer to point one).
Under no circumstances should you use your credit card for expenses that you cannot afford and/or with money you do not have. That is how the banks win.
Also, I haven’t seen a credit card that makes the ongoing point system worth it (i.e. spend $1 and get one point). I would only focus on getting the sign up bonuses.
Use credit card rewards, but be very careful.
- Do NOT use timeshare
I remember as a teenager my Dad being offered a free holiday to Queensland if he went to a seminar for two hours.
Off the family went.
In this seminar they introduced us to a concept called timeshare. Timeshare is where you pay effectively an annual membership which gets you a certain amount of time (say three weeks) in a particular hotel.
At the end of the seminar, the conversation went like this:
Salesperson: So it will cost you $X per annum
Dad: Sounds interesting, I want to go away and think about it
Salesperson: That is not possible, this offer is for tonight only
Dad: Why? That doesn’t seem fair
Salesperson: That is just the way we do business.
We walked out.
While I was dejected at the time that my dream holiday to the West Indies to watch cricket had been shattered, my Dad did the right thing.
Anyone selling you a product using pressure sales tactics like this is selling you a dud product.
Timeshare is no different.
You are able to get better travel deals on Groupon (refer to point four) and you will not be locked into an annual membership for a holiday you may not even use.
Travel is a great investment. Timeshare is not.
Do you have any tips for travel? Make sure you include them in the comments below.
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Disclaimer: This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs. Past performance does not guarantee future returns.
Chris Carlin is an Authorised Representative (No. 1235031 for financial services and No. 514748 for credit) and Master Your Money Now Pty Ltd ABN 65 627 229 681 is a Corporate Authorised Representative (No. 1265677 for financial services and No. 514747 for credit) of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523