Few grey nomads travelling long term around Australia are in a position where they can just forget about the budget and spend whatever they want whenever they want.
For most, it’s a careful balancing act between enjoying what there is to see and do and ensuring that the bank balance will allow them to continue living the dream long into the future. The temptations to bust the budget come thick and fast though and, like many holidaymakers, it is not difficult to spend more than you can really afford to.
One of the biggest budget dangers is getting into a ‘it’s-now-or-never’ mindset. Deepak Chhabra, an associate professor at Arizona State University who specialises in tourism told the BBC that travellers are “viewing life from a short-term perspective and can get carried away”.
Another problem might be seeing how the people on the next site over are having such a great time going out or doing this or that, or comparing your experiences with that of other grey nomads you have heard about. This can give rise to a fear of missing out that can leave people reaching for their credit card.
“People want to be on par with what others are doing,” Ms Chhabra said.
Setting a budget is, of course, critical to the success of any Big Lap but Travellers can be susceptible to setting unrealistic budgets that are either too low or too high.
Eta Shah, a marketing professor at the University of Cincinnati, calls this phenomenon ‘malleable mental accounting’ whereby people justify spending based on present circumstances rather than sticking to a strict budget to control spending.
For example, if you budgeted spending $50 per day on your trip, you can spend another $20 on food by categorising food as an everyday purchase rather than strictly holiday spending. As a result, people justify that they can actually spend an extra $20 on food without recognising that they are already spending more than they do back home.
“Your budgets are not as good as you think they are,” she told the BBC. “Things fall apart based on your motivations.”
On the other side of the coin, people who find they haven’t spent the money they have allocated for a particular week either because they haven’t been driving as much travelling or they have done more free camping, might then decide they can afford to splurge on a tour or scenic cruise or . It is basically giving yourself a mental excuse to spend more money, said Ms Shah.
We set a overall budget and when the money nearly out we come home in till next time
If travelling by road and towing a trailer/caravan, always budget for mechanical problems such as flat tyres. On recent trip we managed two flat tyres in one day. One on the tow vehicle and one on the caravan. Also ensure your insurance is up to date and covers everything! Splurge if you can afford it, otherwise stick to the budget.
we travel on a budget,spending only our pension for about 3 months every year,We tow a caravan and stay in caravan parks,We go out for a couple of lunches,and dinners in that time .I cook the rest of the time.If we go out for a drive we take a picnic and thermo, We see what we want and do things that dont cost that way we stay in our budget.
We have travelling for 8 years now, if we stay in a region long term, we will find work, save and also splurge a bit, because we can afford do. If we are travelling and not working then we try to limit our spending.