Despite a cost-of-living crisis (colloquially dubbed the ‘cozzie livs’), Aussies are setting their sights on international horizons, and they’re cutting back on spending to get there.
That’s according to more than 1,000 Australian adults polled by Wise in July, with 59% revealing they’re planning to travel internationally in the coming three years.
And would-be holidaymakers are willing to make both small and large sacrifices to afford their trips.
“Despite the ever-impending cozzie livs crisis wreaking havoc on Australia, it’s awesome to see Aussies haven’t lost their evergreen spirit for travel,” Wise Australian country manager Tristan Dakin said.
More than 50% are willing to put off personal plans in order to afford international travel in the next three years.
A quarter would delay buying a car or getting a pet, while 14% would push back a marriage, 12% would sacrifice owning a home, and 10% would delay starting a family.
The majority of Aussies are also slashing their spending on clothes, makeup, and gifts, as well as on dining out and takeaway food.
“People are making cutbacks in all areas of their lives in order to prioritise travel, and the savings don’t have to stop when you’re abroad,” Mr Dakin said.
Separate research from ING found nearly one in six wishful travellers are dusting off the old faithful tent in order to save money while away.
The same number are opting to travel domestically rather than internationally.
The bank commissioned a survey of more than 2,000 Aussies, conducted in March, to make its findings.
When it comes to paying for their trips, ING found the majority are leaning on their general savings and a savvy 20% will dip into a dedicated travel fund.
Another third plan to use their salary or income to fund their trip while nearly a quarter are opting to use a credit card.
Mr Dakin warns wanderlusting Aussies that many credit card products charge additional fees when used overseas.
“Don’t let all the hard work of saving for your trip get wasted on hidden fees and marked up exchange rates – especially when there are competitive products in the market to use that will actually save you cash,” he said.
Travel cards or multicurrency cards – one of which is offered by Wise – might end up being a cheaper alternative to credit cards when travelling internationally.
However, converting all the cash you plan to spend on a trip at once could see you miss out on potentially favourable changes in the Australian dollar’s value.
On the other hand, some banks offer travel credit cards, many of which carry certain features and perks that make them better suited to international spending than their traditional counterparts.
Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
Savings Maximiser (<$100k)
Savings Maximiser (<$100k)
|No monthly fees|| |
- Deposit at least $1,000 + each month from an external source
- Make 5 or more eligible transactions
- Grow your savings balance each month
Image by Alexander Kagan on Unsplash.