WEBVTT - Dream holiday, sensible budget 0:00:01.600 --> 0:00:03.720 Welcome to How Do They Afford That, The podcast that 0:00:03.760 --> 0:00:07.040 peaks into the financial lives of everyday Australians. I'm Michael Thompson. 0:00:07.080 --> 0:00:09.200 I'm an author and the co hosts of the business 0:00:09.240 --> 0:00:12.880 news podcast Fear and Greed, and I'm joined in the 0:00:12.880 --> 0:00:16.439 studio today as always by Canna Campbell, financial planner and 0:00:16.440 --> 0:00:19.480 founder of Sugar Mum, a TV, the financial literacy platform 0:00:19.520 --> 0:00:24.239 covering YouTube, podcasts, books, Instagram threads, TikTok and more. Did 0:00:24.280 --> 0:00:26.920 you hear that giant pause, that big breath I took 0:00:27.000 --> 0:00:28.120 before I introduced you? 0:00:28.200 --> 0:00:29.800 Just then guess what was going on there? 0:00:29.920 --> 0:00:31.960 I think I actually just think I need a holiday, 0:00:32.000 --> 0:00:40.560 which is conveniently the topic of today's episode. The funny 0:00:40.560 --> 0:00:43.200 thing about holidays, right is the fact that it's something 0:00:43.200 --> 0:00:47.600 that we're supposed to look forward to these but there's 0:00:47.600 --> 0:00:51.720 often so much stress involved in it from a financial 0:00:51.800 --> 0:00:54.560 perspective about saving up for it kind of before you 0:00:54.600 --> 0:00:56.760 get there, and then once you are on holidays, it's 0:00:56.800 --> 0:00:58.600 kind of what can you afford to do? And when 0:00:58.600 --> 0:01:00.400 you get back from a holiday, it's how do you 0:01:00.440 --> 0:01:02.440 pay for everything that you might have splurged on while 0:01:02.440 --> 0:01:05.720 you're away? And so far I've succeeded in making holidays 0:01:05.760 --> 0:01:10.520 sound entirely unappealing. But today we are going to talk 0:01:10.720 --> 0:01:14.119 about basically how to have the holiday that you want, 0:01:14.160 --> 0:01:16.679 how to save for it, how to prepare, how to 0:01:16.920 --> 0:01:19.839 enjoy it when you're actually there, so that you don't 0:01:19.959 --> 0:01:23.240 have this kind of financial worry that's weighing you down 0:01:23.360 --> 0:01:25.400 while you're supposed to be having a good time. 0:01:25.240 --> 0:01:27.760 And like resting and recharging those batteries so that you 0:01:27.800 --> 0:01:30.280 can hit the ground running and make lots of money 0:01:30.280 --> 0:01:30.880 when you get home. 0:01:31.000 --> 0:01:35.480 Yes, I like this. Why do they feel so stressful? 0:01:35.520 --> 0:01:39.480 Why before we've even left? Why are holidays so financially stressful? 0:01:39.560 --> 0:01:43.800 Is just because the cost of everything is getting so expensive. 0:01:43.920 --> 0:01:47.000 I think it's a combination thing. So obviously the money 0:01:47.319 --> 0:01:49.880 you've got, the emotion, and also the expectation that we 0:01:49.920 --> 0:01:53.000 can put on ourselves, you know, about making it a 0:01:53.160 --> 0:01:56.480 great holiday where everyone's happy, no arguments, no fights, you know, 0:01:56.840 --> 0:02:01.320 having a wonderful breakaway from Groundhog Day, building memories. But 0:02:01.360 --> 0:02:04.920 we're also at the same time scared of crap. How 0:02:04.920 --> 0:02:06.600 are you going to afford this? You know? How are 0:02:06.640 --> 0:02:08.280 you not going to come home to heap some dead 0:02:08.320 --> 0:02:10.840 How are you not going to overspend, and you know 0:02:10.960 --> 0:02:14.480 often behind that is there's no clear plan and it's 0:02:14.639 --> 0:02:16.720 the fear of the unknown that I think can create 0:02:16.760 --> 0:02:19.960 a lot of anxiety for each other. And you know, 0:02:20.240 --> 0:02:23.200 we can very easily if we have done our research 0:02:23.320 --> 0:02:28.760 underestimate the costs and then overestimate the damage of that. Oh, 0:02:28.840 --> 0:02:30.800 I'll figure that out when I get home a little 0:02:30.840 --> 0:02:34.480 bit later. Yeah, with that financial repercussion, that is. 0:02:34.480 --> 0:02:36.880 That is the holiday attitude though, right, Like you don't 0:02:36.880 --> 0:02:38.600 want to deal with that while you're away, just go, 0:02:38.760 --> 0:02:42.359 you know what, we'll figure that out later. I don't 0:02:42.400 --> 0:02:44.639 want to get too negative, but let's get the bad 0:02:44.639 --> 0:02:48.040 stuff out of negative. Oh please, I am the most 0:02:48.080 --> 0:02:53.120 positive person that you have ever met. No, that's not true. 0:02:53.240 --> 0:02:55.760 Like the look on your face like you are just 0:02:56.240 --> 0:02:59.520 making up stuff as you go along. The biggest mistake 0:03:00.560 --> 0:03:03.480 that people make when they are planning and saving for 0:03:03.600 --> 0:03:05.600 a holiday, and this is the last of the negativity 0:03:05.680 --> 0:03:08.520 before we get to the positive stuff, is the biggest mistake. 0:03:08.919 --> 0:03:12.920 Is it what you just mentioned kind of underestimating cost. 0:03:13.080 --> 0:03:15.360 Yes, so you know it's at the end of the day. 0:03:15.360 --> 0:03:18.200 I think it's about treating it as a financial afterthought. 0:03:18.280 --> 0:03:21.120 Instead of like a goal or a reward for you know, 0:03:21.400 --> 0:03:24.280 achieving a particular goal, you know, just jumping on and 0:03:24.280 --> 0:03:27.560 booking the flights and accommodation, you know, where you don't 0:03:27.560 --> 0:03:30.400 necessarily have to pay for it upfront and then thinking 0:03:30.560 --> 0:03:33.160 I'll worry about that closer to the time. You know. 0:03:33.480 --> 0:03:37.960 Not accounting for all those little things like transfers is 0:03:37.960 --> 0:03:41.680 a big one, you know. The food. Like in some countries, 0:03:41.720 --> 0:03:43.920 food's a lot more expensive than it is for what 0:03:43.960 --> 0:03:47.320 we used to For example here, you know, getting around, 0:03:47.440 --> 0:03:49.440 you know, is it a city or a place where 0:03:50.160 --> 0:03:53.320 you get taxis or you can easily access public transport, 0:03:54.520 --> 0:03:58.800 you know, spending money, taxes, visas. You know, all those 0:03:58.800 --> 0:04:03.040 little extras can actually really add up in costs more 0:04:03.080 --> 0:04:05.240 than they're sometimes, the airfare and the accommodation. 0:04:05.640 --> 0:04:08.440 All right, I'll get to a bit of budgeting advice, 0:04:08.480 --> 0:04:11.080 because I want to know how you plan for your 0:04:11.120 --> 0:04:13.920 trips when you go away. We'll do that's in a 0:04:13.960 --> 0:04:16.599 sec I want to know first though, how do we 0:04:16.600 --> 0:04:18.839 actually do it? It was the smartest way to save 0:04:19.400 --> 0:04:21.599 I mean rather than kind of the budgeting side, which 0:04:21.600 --> 0:04:25.120 will come later, But what's the smartest way to save 0:04:25.440 --> 0:04:28.040 for a holiday. Is it setting up a separate account? 0:04:28.200 --> 0:04:30.720 Is it kind of regular allocations all that kind of thing, 0:04:30.760 --> 0:04:32.479 your standard financial goal stuff. 0:04:32.560 --> 0:04:36.320 Right, Yes, so you've answered the your own question perfectly. 0:04:36.480 --> 0:04:37.640 I no longer need you. 0:04:38.960 --> 0:04:42.960 Oh damn, I'll really miss you. No, like, have a 0:04:43.000 --> 0:04:46.080 separate savings account nickname it, you know, our holiday savings. 0:04:46.120 --> 0:04:48.200 And I think that's really important because obviously when you 0:04:48.279 --> 0:04:49.920 log onto your internet banking you see the you what 0:04:49.960 --> 0:04:52.520 a holiday savings account. Not only does it stop you 0:04:52.560 --> 0:04:54.840 from getting confused and accidentally using that money, it also 0:04:54.880 --> 0:04:56.719 is a great reminder as to what you're working towards 0:04:56.760 --> 0:04:59.160 and to get excited a wow, like we've actually got 0:04:59.200 --> 0:05:00.960 like four thousand three we have to all saved up 0:05:01.000 --> 0:05:02.919 for a holiday fund, even though you may not necessarily 0:05:02.960 --> 0:05:05.120 know where you want to go yet, but just I 0:05:05.120 --> 0:05:09.839 think the mental respite and the I guess excite would 0:05:09.839 --> 0:05:11.760 have knowing, Wow, look at that money, we are going 0:05:11.800 --> 0:05:13.560 to go on a holiday. We can get excited about this, 0:05:13.640 --> 0:05:18.320 it's really happening. Regularly contributing to it. But also don't 0:05:18.600 --> 0:05:21.800 forget about the ad hoc contributions as well. You know, 0:05:21.839 --> 0:05:23.640 for example, you might get a bonus or a tax 0:05:23.680 --> 0:05:25.560 refund and you can afford to put it into that 0:05:26.200 --> 0:05:29.520 holiday of savings account, like do that and regularly check 0:05:29.560 --> 0:05:32.160 it and watch it up add up, and that's when 0:05:32.200 --> 0:05:33.880 you can start thinking about where do you want to 0:05:33.920 --> 0:05:35.960 go and what's going to cost and do we have 0:05:36.120 --> 0:05:38.800 enough here? And it means you enjoy the holiday so 0:05:38.960 --> 0:05:42.560 much more knowing it's all been paid for and allocated 0:05:42.600 --> 0:05:45.200 for financially before you like walk out the front door 0:05:45.240 --> 0:05:46.240 or pack that suitcase. 0:05:46.320 --> 0:05:48.680 It would be a good motivation for a little side hustle, 0:05:48.839 --> 0:05:50.599 isn't it, knowing that if you're going to if you're 0:05:50.640 --> 0:05:52.480 going to go to the effort of setting up something 0:05:52.520 --> 0:05:54.240 on the side, that you're going to put every cent 0:05:54.320 --> 0:05:56.279 that you make here into your holiday fund. 0:05:56.440 --> 0:05:58.400 Exactly Like if these things you can sell, you can 0:05:58.440 --> 0:06:00.560 take on some extra work or the weekend, you know, 0:06:00.640 --> 0:06:03.360 monetize like a hobby or something like that, even if 0:06:03.360 --> 0:06:05.360 it helps give you some extra spending money. 0:06:05.520 --> 0:06:10.440 Yes, that's great. Declutter. What fantastic motivation that would be 0:06:10.560 --> 0:06:14.599 to declutter your house, sell all your unwanted stuff, knowing 0:06:14.640 --> 0:06:17.160 that everything that you sell is going to help you 0:06:17.279 --> 0:06:20.040 fund your holiday. It would make those decisions, you know, 0:06:20.080 --> 0:06:22.080 when you're picking up something. Do do I need to 0:06:22.160 --> 0:06:24.160 keep this? Do I not? Or is it going to 0:06:24.200 --> 0:06:26.039 be worth more as a cocktail in Fiji? 0:06:28.080 --> 0:06:29.320 Caravanning around Australia? 0:06:29.320 --> 0:06:33.960 Happy? Yeah? Absolutely? How do you do it? All? 0:06:34.040 --> 0:06:34.160 Right? 0:06:34.200 --> 0:06:40.040 Because I'm fascinated by just the processes that you take, 0:06:40.200 --> 0:06:47.600 because you have a great gift for it's not necessarily 0:06:47.640 --> 0:06:52.440 being frugal, but being able to get great value but 0:06:52.640 --> 0:06:55.960 also not compromise on experiences and things. So I'm curious 0:06:56.000 --> 0:06:58.440 how you plan for a trip, your process? 0:06:58.480 --> 0:07:02.720 Please, I am a little bit it. So I often 0:07:03.080 --> 0:07:08.200 capitalize on Tom's travel. So Tom travels a lot for work, 0:07:08.760 --> 0:07:12.720 so I will, I guess, piggyback off his travel because 0:07:12.760 --> 0:07:15.120 then obviously a lot of his at least his airfare 0:07:15.200 --> 0:07:19.360 is paid for separately his You know, we can all 0:07:19.360 --> 0:07:22.520 bunker down into his hotel room. And yes there are 0:07:22.560 --> 0:07:24.440 times where we've had all five, like for all five 0:07:24.520 --> 0:07:27.440 verse in one hotel room. So I try and make 0:07:27.480 --> 0:07:29.640 the most of those opportunities because it's a great way 0:07:29.640 --> 0:07:32.520 of seeing a country and being part of Tom's work 0:07:32.560 --> 0:07:35.800 and seeing what he does. So that, but yes, I 0:07:35.840 --> 0:07:37.600 have it. We have a separate savings account that's for 0:07:37.720 --> 0:07:40.640 holiday but also for weekends away as well, because for me, 0:07:40.680 --> 0:07:43.679 that's another form of a holiday and makes the mutually 0:07:43.760 --> 0:07:48.480 sustainable and regular throughout the year as well. And then obviously, 0:07:48.560 --> 0:07:50.600 you know, making sure that you've got that money saved 0:07:50.680 --> 0:07:53.280 up in time. So say, for example, I'm planning a holiday. 0:07:53.720 --> 0:07:54.920 You know, I'd love to go to Bali at the 0:07:55.000 --> 0:07:58.000 end of this year when school holiday breaks. I love 0:07:58.040 --> 0:07:59.840 to do that, you know, going all right, well, this 0:07:59.920 --> 0:08:01.480 is how much we need to budget, This is how 0:08:01.560 --> 0:08:04.160 much we need to be adding on a regular basis 0:08:04.200 --> 0:08:06.840 to get there. But even if I can't, for example, 0:08:06.920 --> 0:08:09.720 afford to put the full amount to get there, just 0:08:09.760 --> 0:08:12.760 by starting the process and then slowly as I can, 0:08:12.880 --> 0:08:16.000 slowly build up that regular savings plan so I get 0:08:16.000 --> 0:08:18.480 as close to that as possible when it comes close 0:08:18.520 --> 0:08:21.520 to that particular date. And things like you know, obviously 0:08:21.560 --> 0:08:24.960 the obvious ones like frequent flyer points, you know, booking 0:08:25.000 --> 0:08:28.920 early and even better, you know, booking the calling the 0:08:28.960 --> 0:08:32.240 hotel directly to ask them if they have a better deal, 0:08:32.640 --> 0:08:34.719 because obviously they're paying commission to a lot of those 0:08:34.760 --> 0:08:38.160 booking websites. Quite often if you call them they'll actually 0:08:38.160 --> 0:08:40.160 give you a better rate as well, which is a 0:08:40.200 --> 0:08:41.000 great little. 0:08:40.760 --> 0:08:42.840 Hack really, so you just go direct. 0:08:43.000 --> 0:08:45.640 Yeah, and you can also there's all the loyalty programs 0:08:45.679 --> 0:08:48.720 like Hilton have one as well, intercontinentally all have these 0:08:48.760 --> 0:08:51.239 you know, great war programs. They'll give you free upgrades 0:08:51.320 --> 0:08:54.240 or you know, like checkouts, or they'll include breakfasts and 0:08:54.640 --> 0:08:58.480 you know, doing researching everything. Like we recently were looking 0:08:58.480 --> 0:09:01.280 at a holiday to go to New Caledonia because Tom 0:09:01.280 --> 0:09:02.200 had to go there for work. 0:09:03.280 --> 0:09:04.160 What a tough job. 0:09:04.200 --> 0:09:06.440 I know, well we didn't, but you know what I was. 0:09:06.559 --> 0:09:09.200 We were researching and we're really struggling because we couldn't 0:09:09.240 --> 0:09:11.800 find the details. And then I happened to see a 0:09:11.840 --> 0:09:14.800 friend who had been to New Caledonia, and I said, 0:09:15.040 --> 0:09:17.000 I was able to ask a whole pile of questions 0:09:17.520 --> 0:09:20.200 and we've got some great clarity. And I came back 0:09:20.240 --> 0:09:21.560 to time and said, okay, I've just found out all 0:09:21.559 --> 0:09:23.800 this stuff. And so we decided, okay, let's maybe let's 0:09:23.840 --> 0:09:26.760 park that for the year after next because of the 0:09:26.800 --> 0:09:29.160 feedback we got. So you know, this is where doing 0:09:29.200 --> 0:09:30.840 your research is really valuable. 0:09:31.280 --> 0:09:33.280 There's some good tips there. I like that idea of 0:09:33.320 --> 0:09:38.640 going straight to the going straight to the accommodation into 0:09:38.679 --> 0:09:42.240 the hotel. Yeah, yeah, yeah, and looking for those deals 0:09:42.280 --> 0:09:44.400 as they come up, the flight deals and all those. 0:09:44.360 --> 0:09:46.599 Groupon as well. You can you look and see what 0:09:46.640 --> 0:09:47.719 you know. For example, if you want to go to 0:09:47.760 --> 0:09:50.120 a day spy or something, they'll have some groupon deals 0:09:50.200 --> 0:09:51.839 in the area that you're traveling to. 0:09:52.040 --> 0:09:54.120 Yeah, and I suppose that the idea is if you've 0:09:54.160 --> 0:09:56.120 got this money that you have set aside, and that 0:09:56.160 --> 0:09:59.040 you are contributing to it as you go, then it 0:09:59.040 --> 0:10:01.880 would mean that you are able to act quickly when 0:10:01.960 --> 0:10:05.520 something does happen like Loo get the airlines all the time, 0:10:06.320 --> 0:10:09.000 big scales, and they start competing with each other, and 0:10:09.080 --> 0:10:11.560 all of a sudden, you can get the flight that 0:10:11.640 --> 0:10:14.000 you've been keeping an eye on for maybe two thirds 0:10:14.080 --> 0:10:16.800 the price of what it was before because there's this competition. 0:10:17.559 --> 0:10:19.520 But if you haven't got the money saved and you're 0:10:19.559 --> 0:10:22.520 not ready to go, then that opportunity might pass you by. 0:10:22.559 --> 0:10:24.160 And that's why people end up getting in credit card 0:10:24.160 --> 0:10:27.199 debt because they go, oh, and that's obviously not advisable 0:10:27.400 --> 0:10:29.720 at all, Okay, And you can't really enjoy a holiday 0:10:29.760 --> 0:10:31.600 knowing you're going to come home to a massive credit 0:10:31.600 --> 0:10:34.040 card debt and you're a financial torture. 0:10:34.240 --> 0:10:36.920 Well, speaking of enjoying the holiday, we're going to take 0:10:36.960 --> 0:10:39.280 a quick break. And on the other side, it is 0:10:39.360 --> 0:10:41.679 what to do while you are away, how to actually 0:10:41.800 --> 0:10:44.600 enjoy the holiday without this nagging feeling that you are 0:10:44.640 --> 0:10:46.559 building up debt that you're going to have to deal 0:10:46.600 --> 0:10:55.680 with when you get home. Back in a moment, can 0:10:55.800 --> 0:10:59.480 we are talking about having a great holiday on a budget. 0:10:59.520 --> 0:11:02.760 It doesn't even need to necessarily be on a tight budget. 0:11:02.800 --> 0:11:07.040 It just it is about not lowing money that you 0:11:07.640 --> 0:11:11.880 don't have, right, that's kind of the nature of a budget. 0:11:11.960 --> 0:11:17.040 Right when you're away, How do you do it without 0:11:17.160 --> 0:11:20.800 constantly worrying about money? How do you just spend? Do 0:11:20.840 --> 0:11:23.480 you set yourself like a daily spend. I know that 0:11:23.520 --> 0:11:25.480 you do a lot of research, but there's going to 0:11:25.480 --> 0:11:27.200 be a lot of things that come up as you're going. 0:11:27.240 --> 0:11:30.080 Do you have a certain amount that you allocate per day? 0:11:30.559 --> 0:11:33.640 So the goal is obviously to have fun and to 0:11:33.760 --> 0:11:37.520 you know, let your head down and treasure the opportunity 0:11:37.640 --> 0:11:40.959 and the moment and the memories together. But it's also 0:11:41.240 --> 0:11:44.720 you've got to keep a wise financial hat on. So 0:11:45.440 --> 0:11:48.400 I would normally allocate a certain amount of money per day, 0:11:49.080 --> 0:11:54.079 you know, as a family unit, but keep it, keep 0:11:54.080 --> 0:11:55.920 a buffer there, but keep it fluid. So there'd be 0:11:56.040 --> 0:11:59.280 days where we'll spend more than our allocated cap. Then 0:11:59.320 --> 0:12:01.720 we know the next to kind of maybe go to 0:12:01.760 --> 0:12:06.079 a different restaurant or maybe pick a slightly more budget 0:12:06.080 --> 0:12:08.760 friendly activity to help balance it out. 0:12:08.880 --> 0:12:11.840 See, this is where I think people will come unstuck 0:12:12.080 --> 0:12:15.280 because that requires a lot of discipline that. 0:12:15.760 --> 0:12:17.480 If you've done your research, is not to dip it 0:12:17.520 --> 0:12:19.800 at all, because you know, you know, well, we can't 0:12:19.840 --> 0:12:23.920 go jet skiing every day like you know, yeah, and 0:12:24.440 --> 0:12:27.720 also allow some time for rest and recovery as well, 0:12:27.760 --> 0:12:30.480 where it's watching a movie in the hotel room and 0:12:30.480 --> 0:12:33.120 maybe ordering room services of going out to another restaurant 0:12:33.280 --> 0:12:35.800 or you know, having a day sitting by the beach 0:12:35.960 --> 0:12:39.520 or the pool instead of you know, doing going island 0:12:39.559 --> 0:12:41.680 hopping or whatever whatever it may be, or shopping or 0:12:41.679 --> 0:12:42.120 you know. 0:12:42.480 --> 0:12:45.080 What about then pre paying as much as you can 0:12:45.160 --> 0:12:48.240 for while you are actually awake, because we know that obviously, 0:12:48.400 --> 0:12:50.679 pay your flights and advance and chances today you pay 0:12:50.679 --> 0:12:53.080 for your accommodation, your hotel or something in advance. But 0:12:53.120 --> 0:12:55.160 are there other things that you can book and pay 0:12:55.240 --> 0:12:57.720 so that you're not dealing with those expenses while you're 0:12:58.160 --> 0:12:59.319 actually on holidays. 0:12:59.360 --> 0:13:03.240 Absolutely, you can book and prepay so many things like transfers, 0:13:03.400 --> 0:13:05.840 even activities, particularly if you're using great things like you know, 0:13:06.160 --> 0:13:08.480 group on, so you can book and pay for so 0:13:08.679 --> 0:13:12.320 much you know upfront, you know, especially with like hotels, 0:13:12.320 --> 0:13:15.640 you could include your breakfast or you know, lunches and dinners, 0:13:15.679 --> 0:13:18.959 like so many things these days can be you know, included. 0:13:18.960 --> 0:13:21.000 And you think about like hotels like Club Med. Do 0:13:21.040 --> 0:13:23.760 you ever go go to Club Met as a child. No, Oh, 0:13:23.960 --> 0:13:27.720 it was all inclusive. You got beats for money, and 0:13:27.760 --> 0:13:31.280 so your only money you would spend would be your own, 0:13:31.480 --> 0:13:34.400 like you basically hand over say twenty dollars and get 0:13:34.800 --> 0:13:37.439 these bees that you wear as necklaces, and you would 0:13:37.960 --> 0:13:40.040 they were to pay for extra things that won't included. 0:13:40.160 --> 0:13:42.800 So you know, obviously breakfast, lunch and dinner and all 0:13:42.840 --> 0:13:45.800 the sort of most of the activities were included. And 0:13:46.000 --> 0:13:50.600 so literally, thy families love Club Med. You everything's done 0:13:50.640 --> 0:13:53.320 and this you would only pay for something extra, like 0:13:53.360 --> 0:13:54.920 you want to go and get a massage, or you 0:13:55.000 --> 0:13:57.240 want to go and like away from the hotel and 0:13:57.280 --> 0:14:00.240 do something completely separate. But it's got kids club which 0:14:00.280 --> 0:14:04.400 is all inclusive. So yes, there is most things you 0:14:04.400 --> 0:14:06.600 can actually or prepay. 0:14:07.000 --> 0:14:09.480 What about the big blowout category? So I know that 0:14:09.520 --> 0:14:11.560 I said I wouldn't be negative kind of what are 0:14:11.600 --> 0:14:14.240 the things that I should be watching out for the 0:14:14.320 --> 0:14:17.400 things that are going to cost more? Okay, it just 0:14:17.440 --> 0:14:22.200 occurred to me foreign currency and exchange rates and getting 0:14:22.680 --> 0:14:26.800 hammered by international conversion charges and things on you. So 0:14:26.920 --> 0:14:30.760 you are using a credit card or something in another country. 0:14:31.840 --> 0:14:34.240 How do you navigate those kinds of things because those 0:14:34.240 --> 0:14:35.760 can add up very very quickly. 0:14:35.800 --> 0:14:39.400 And it's also there are so many different deals going on, 0:14:39.480 --> 0:14:41.920 different ways of doing it, and also you need to 0:14:41.920 --> 0:14:44.280 pick away that's easy for you to manage if you've 0:14:44.280 --> 0:14:48.640 got like five different cards, or you know, you're converting 0:14:48.720 --> 0:14:50.960 cash at one place and another place like you can 0:14:50.960 --> 0:14:54.280 get missy so you know, whatever, just keeps it easy 0:14:54.320 --> 0:14:57.680 to actually monitor and review is wise. And obviously you 0:14:57.720 --> 0:14:59.760 want to be careful for the exchange rate, do your research, 0:15:00.360 --> 0:15:04.240 you know, get prices from different people, and obviously you 0:15:04.280 --> 0:15:06.000 need to look at your credit card company or your 0:15:06.600 --> 0:15:09.040 bank to see what they're actually charging in the conversion rate, 0:15:09.080 --> 0:15:11.840 and it really does vary, So you want to sort 0:15:11.840 --> 0:15:15.080 of spend time working in best time before you go 0:15:15.560 --> 0:15:17.600 so that you know, actually, the smartest way for me 0:15:17.640 --> 0:15:19.760 to pay for things on this trip is with my 0:15:19.800 --> 0:15:23.280 credit card or with it with cash, because that you'll 0:15:23.280 --> 0:15:25.600 get a better deal. But obviously, keeping in mind things 0:15:25.600 --> 0:15:28.160 like travel insurance, you might have an element of safety 0:15:28.440 --> 0:15:29.960 even if it does cost you a little bit more 0:15:29.960 --> 0:15:31.000 that you've got that insurance. 0:15:31.240 --> 0:15:36.520 Oh yeah, it's you are very bold taking an international 0:15:36.520 --> 0:15:40.640 trip without travel insurance. Oh my goodness, considering the amount 0:15:40.640 --> 0:15:43.720 that it costs you, which is not that much compared 0:15:43.760 --> 0:15:46.760 to potentially the cost of the trip, and just if 0:15:46.800 --> 0:15:50.680 things go wrong, the cost can just go out of control. 0:15:50.960 --> 0:15:51.200 Right? 0:15:52.400 --> 0:15:54.640 Can I give you a tip that is from not 0:15:54.720 --> 0:15:57.320 from me, It's from my colleague on Fear and Greed, 0:15:57.400 --> 0:15:59.119 Sean Alma, who. 0:15:59.720 --> 0:16:02.120 Does loves the travel. He lies on holiday. 0:16:02.200 --> 0:16:05.000 He always he is always traveling around the world and 0:16:05.800 --> 0:16:08.880 recording the show from all kinds of exotic places. But 0:16:08.920 --> 0:16:14.080 he's also an economist by training as well, and he's 0:16:14.120 --> 0:16:16.320 done a lot of work on kind of currencies and things, 0:16:16.800 --> 0:16:19.600 and so we've talked about on the podcast, how do 0:16:19.680 --> 0:16:22.200 you get the best How do you time it? How 0:16:22.240 --> 0:16:24.600 do you get the best conversion so that you're actually 0:16:24.600 --> 0:16:26.200 getting the best bang for your buck if you're going 0:16:26.240 --> 0:16:28.080 to the US or you're going somewhere else in the world. 0:16:28.400 --> 0:16:30.960 And he basically says, it's that hard. It is it 0:16:31.040 --> 0:16:33.920 is impossible to time. You take the same approach as 0:16:33.960 --> 0:16:36.760 if you are investing in a dollar cost average approach, 0:16:36.960 --> 0:16:39.440 and he goes that that over a kind of six 0:16:39.480 --> 0:16:42.080 months leading up to the trip, if you want to 0:16:42.120 --> 0:16:44.400 have kind of five or six thousand dollars for instance, 0:16:44.480 --> 0:16:46.200 or five or six hundred dollars or whatever it is 0:16:46.240 --> 0:16:49.280 in spending money while you're while you're away converting it, 0:16:49.520 --> 0:16:53.240 you do one thousand dollars a month, and you will 0:16:53.520 --> 0:16:55.560 you'll win some, you'll lose some, and they will It 0:16:55.600 --> 0:16:58.240 will average out in the end. But you do run 0:16:58.280 --> 0:17:00.760 into problems if you leave it so the very last 0:17:00.760 --> 0:17:02.440 minute and you're doing it all at the airport on 0:17:02.480 --> 0:17:04.680 the way out of the country or something like that, 0:17:04.760 --> 0:17:08.280 then you are stung. Yeah, you are exposed, and you 0:17:08.359 --> 0:17:10.640 might have caught the dollar on a bad day. 0:17:10.960 --> 0:17:13.679 And also some places don't like cash as well. Yeah, 0:17:13.760 --> 0:17:18.720 you know, like it's quite incredible. Like a lot of 0:17:18.760 --> 0:17:21.640 places are cash cash lists. 0:17:21.320 --> 0:17:24.760 So okay, so say you've been on holidays, doesn't it 0:17:24.760 --> 0:17:26.800 can be anywhere. Could have been at the Gold Coast 0:17:26.800 --> 0:17:29.919 for a week, You could have been overseas somewhere for 0:17:29.960 --> 0:17:34.119 three months. How do you avoid coming home to a 0:17:34.200 --> 0:17:40.240 financial hangover? Is it just by holiday and within your means? 0:17:40.800 --> 0:17:43.080 Yes, but also it's regularly checking in to make sure 0:17:43.160 --> 0:17:45.320 you haven't blown all your money within the first three 0:17:45.400 --> 0:17:47.200 days of holiday. That's why I like to have that 0:17:47.280 --> 0:17:50.399 allocation of X amount of dollars per day, you know, 0:17:50.560 --> 0:17:53.080 give or take, you know, to obviously have some experience 0:17:53.080 --> 0:17:55.679 to day, some cheap days, but and doing all the 0:17:55.720 --> 0:17:59.320 research so that you've you've factored in everything and you've 0:17:59.320 --> 0:18:01.960 done your research just to watch the savviest way to 0:18:01.960 --> 0:18:04.720 get around. I mean, we went to Japan a couple 0:18:04.760 --> 0:18:08.639 of years ago, and you know, being a family with 0:18:08.720 --> 0:18:11.320 three young children and things like prams and just stuff, 0:18:11.320 --> 0:18:13.520 all the stuff you carry, Like, our instinct was to 0:18:13.520 --> 0:18:17.040 get into a taxi or an uber in Tokyo. That 0:18:17.119 --> 0:18:20.399 was extraordinarily expensive. I think we paid like two hundred 0:18:20.400 --> 0:18:23.240 dollars just to get to our hotel. But once we 0:18:23.320 --> 0:18:25.399 quickly figured it out and figured out the train system. 0:18:25.440 --> 0:18:27.240 It was then brilliant, Beau. We could jump on the 0:18:27.320 --> 0:18:30.919 trains and get everywhere we needed to. So you're just 0:18:30.960 --> 0:18:33.240 doing your research, having a daily buffer, but checking in 0:18:33.280 --> 0:18:36.560 to make sure you're on track, you're not blowing out. 0:18:36.640 --> 0:18:38.720 And you know, even if it means rounding up how 0:18:38.800 --> 0:18:40.119 much you think you're going to need to allow for 0:18:40.160 --> 0:18:44.000 those amazing opportunities where you can you know, upgrade certain 0:18:44.040 --> 0:18:47.560 tickets or certain activities to make the most of it, 0:18:47.640 --> 0:18:49.400 you know, keep it real. 0:18:49.680 --> 0:18:52.399 Yeah, and keep an eye like just the idea of 0:18:52.480 --> 0:18:54.879 keeping an eye out for those good deals and having 0:18:54.920 --> 0:18:57.919 the money set aside in advance before you even know 0:18:58.000 --> 0:19:00.840 necessarily what your holiday is going to be. I really 0:19:00.920 --> 0:19:03.439 like that idea because then when you do see something 0:19:03.440 --> 0:19:06.200 come up that you can jump on it, and knowing 0:19:06.200 --> 0:19:07.960 that you are not going to a credit card, you 0:19:07.960 --> 0:19:09.919 are actually going to the money that you have saved. 0:19:10.480 --> 0:19:13.240 Give us something positive to finish on, because I think 0:19:13.280 --> 0:19:16.440 I tainted everything earlier with a whole lot of negativity, 0:19:16.480 --> 0:19:19.800 toxic negativity in the in the studio. Bit of good 0:19:19.840 --> 0:19:24.320 advice for anyone who wants to really enjoy their holiday. 0:19:24.359 --> 0:19:26.960 I think, spend time thinking about what you really want 0:19:27.040 --> 0:19:29.159 out of a holiday. You know, do you want a 0:19:29.160 --> 0:19:34.920 holiday that's an adrenaline rush, you know with sports activities 0:19:35.040 --> 0:19:39.360 and you know, like someone like skiing or skydbbing, or 0:19:39.520 --> 0:19:42.600 you know, something like snowboarding, or do you want something 0:19:42.720 --> 0:19:44.720