These days savings doesn’t have to be cash in your current account. In fact in these days of internet banking you have many more options. If you are travelling for only a few months then it is probably best to keep it simple.
Travelling for 6 months plus though you can save significant money by:
- keep funds in a revolving credit facility – you save the equivalent of your mortgage’s interest rate, better than any savings deposit interest rate you will be offered;
- keep excess funds in a higher earning term deposit or savings account – just make sure you can move them electronically to your travel account when you need them.
In fact you may not have all the cash up front, remember to include:
- money owning to you from work such as your last pay – which may include holiday pay too, tax refunds and bonds returned from rental property, utility companies etc.
- Remember to also add in the proceeds from any items you are going to sell such as vehicles, furniture etc. Just don’t be too optimistic on the prices you hope to achieve.