Craving the vast turquoise waters of Bora Bora or bright lights of Las Vegas? We hear you. Those suffering from wanderlust withdrawals should utilise this time of border closures to prepare their finances for when we are finally allowed to travel again because your money should always be working for you.
Here are some great ways to grow your travel fund.
Open A Separate Travel Fund Account
Deposit a portion of your wages into a separate travel fund account every pay week. Even just $100 a week could see your travel account grow to $5,200 in just 52 weeks. It could mean the difference between flying cattle class or business class. A term deposit can gain a higher interest rate when you agree to leave your money in the account for a predetermined amount of time. The amount of deposit required often varies between banks and can range from $1,000-$5,000.
Audit Your Apps And Subscriptions
Are you really watching that much TV that you need to subscribe to all the TV streaming networks? Sign up for one at a time and when you’ve finished binge-watching your favourites, cancel and make the switch. Also, run an audit on all your app subscriptions and cancel the fees for the ones you no longer use. You’ll be surprised how much you can save.
Salary Sacrificing Packages
Depending on your industry and role, you may be eligible to include private travel for you and your family as part of a salary package. Potentially, this could include airfares, hotels, and insurance costs. Ask your employer to see if you are eligible.
If you can afford an investment property, a passive income stream from rent can be redirected towards future travel plans. Property prices and rents continue to rise and with unparalleled tenant demand nationwide, it is unlikely you’ll have problems finding good-paying tenants.
Minimise Your Tax
Make sure you are claiming for everything you are entitled to for the EOFY, particularly if you’ve been working from home. Many Australians don’t realise what they can claim and miss out on valuable funds in their tax return. Even using the shortcut method to calculate your home-office expenses, you can claim 80 cents for every hour spent working from home.
Gerry Incollingo is the Managing Director of LCI Partners in 1998, an established accounting, finance and legal firm based in Parramatta. Since that time, the firm has expanded with six divisions and is now based in Sydney, Parramatta, and southern Sydney.
Now, here's what you can claim on tax if you've been working from home.
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