Saving is tough!
If you’re anything like me you’ll find saving up really hard. But if you’re going to be travelling for an extended period of time you’ll need to have access to lots of cash. When I was saving up to go travelling, I found the best way to save was to budget carefully and allow myself a set amount of ‘pocket money’ per week so I did’t feel deprived. It’s nice to be able to buy yourself lunch every so often rather than just taking a packed lunch to work. Since we pay tax on pretty much everything in the UK, of course, savings are not exempt. You have to pay tax on any interest earned on savings. Of course, with the interest rates so low you probably won’t have much tax to pay but why pay any if you don’t have to? In the UK, you can open an individual savings account (ISA) and pay in up to £5640 each tax year, interest free. This is great when you’re saving up to go travelling because every penny helps! This infographic from Money Supermarket explains all.
Image source: MoneySupermarket.