Saving up

Planning a holiday is no simple feat. It can take a couple years to save up enough for a really big trip. And when you live in Australia, getting to most of the world means you need to think big. So, where's the best place to put your hard-earned savings for this trip? How do you divvy up your funds? And don't forget, once you're in Outer Mongolia, how will you get to your money? And have you planned how you pay off your debts once you're back?

The winning combination is to have an everyday bank account with a high interest savings account, an ATM card and a credit card.

  1. Keep a stash in a high interest rate savings account and it'll earn you money through interest payments. Nice! It's a great way to help you build your savings up before you go, and ideally to earn you money while you're away so you can have something to live on when you get back.
  2. You also need a separate account for day-to-day banking that comes with an ATM card. It helps you save by letting you keep your savings separate while giving you an account to use while you're overseas.
  3. Finally, a credit card gives you a bit of flexibility, which is perfect for emergencies.

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Forward planning

There's an awful lot to do before you go besides simply saving up your money.

Research. Find out as much as you can about the countries you're going to. Read up and ask everyone you know to tell you everything they know. That way you won't miss out on the best experiences, adventures or secret hideaways that most tourists miss out on. Plus, the more you know, the fewer unexpected surprises.

Passports and visas. Make sure you have a passport and all the right visas. Your passport needs to have at least six months validity before you go - and if you're going to be away for longer, it needs to cover you for the time you'll be away. You should also have extra copies of your passport photo in case you need to get a replacement while you're overseas.

Vaccinations. Check with your doctor on recommended vaccines and other medicines. Make sure you have all your vaccines recorded on a vaccination certificate and take it with you. Some countries may deny entry without it.

Medicines and prescriptions. It's not just oldies who have to carry medicines with them. If you've got asthma or diabetes or any other condition, you'll need to make sure you've got a copy of your prescription and a letter from your doctor certifying your condition. If you have to carry syringes, for example, you may not be allowed into the country without it. Check the laws of the countries you're travelling to with your travel agent or the country's consulate or embassy.

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Travel insurance

Travelling overseas is a fantastic experience. Chances are nothing will happen to you, but if it does, travel insurance is priceless. And you need to have it sorted before you go. Accidents happen and illness is often unavoidable. Then there's the chance of having your cash and stuff stolen. And if you're into adventure sports, you really need to have a safety net. Insurance can save you from massive, unexpected medical or legal bills that could otherwise see you come home with a debt the size of a small home loan.

Paying the price
The Department of Foreign Affairs and Trade advises: "If you can't afford travel insurance, you can't afford to travel." When you're away from home, you're vulnerable because you're away from your support network, in unfamiliar environments and often surrounded by people speaking another language. Having travel insurance can not only save you money, it may help you to replace items that are stolen, put you in touch with a translator or even get you home in an emergency.

Travel insurance sites

Tip - Things to ask about travel insurance

  • Will the policy be recognised worldwide? In some countries, if they don't know the insurance underwriter, you might get turned away from hospital. Plus, you may not be covered for claims made in countries where the Department of Foreign Affairs and Trade has issued travel warnings. Make sure you get up-to-date travel advice before you sign your policy.
  • What are the exclusions? For example, many travel insurance policies won't cover luggage that is left unattended in public places or pre-existing medical conditions. Check the small print.
  • What if you have a medical condition? If you have something like asthma or diabetes, for example, you may need to get an additional agreement in writing from your insurer and a letter from your doctor. Check before you go and give yourself enough time to get all the paperwork in order.
  • Does cover include full medical evacuation? You need to know who'll pay if you have to be flown home or if you need to book extra seats for your broken leg.
  • Do you have enough cover? If you're heading for the USA, Europe or Japan, you'll need unlimited cover due to astronomic hospital and medical costs. It's not that rare for medical bills to reach $500,000 in countries like this.
  • Will cover last until you get back home? There are plenty of cases of people being injured and hospitalised in the last hours of their trip, and not realising their cover has run out or thinking a couple of days won't make a difference. Make sure you're covered right up until you're home.

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