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E E R F T B E D L E V HOW TO TRA at.
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By Bianca Delport
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f you’ve been bitten by the travel bug, travelling as much as you can, as far as you can, and as long as you can, often depends on your budget. A holiday abroad will tug on your purse strings with flights, food and accommodation to cover. But hopeful explorers don’t need to miss out or rack up mountains of debt in the booking process. It is 100% possible to travel debt-free – and it isn't going to be much of a challenge either! Here’s how it’s done.
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Open a holiday fund In the same way that parents prioritise saving for their child’s education over an extended period, they can do the same for travel – and the earlier they start, the better. “If you begin saving early enough, you will be amazed at how much is accumulated in a relatively short space of time by simply setting aside a specific rand amount on either a weekly or monthly basis,” says Dylan Carreira-Miguel, a financial advisor at Simplicity Financial, an independent financial consultancy
company based in Johannesburg. “The problem is that you could face hidden charges and tax if you go the traditional unit trust investment route,” he warns. But how do you avoid that and maximise your investment? The answer lies in a tax-free savings/investment account. “In South Africa, you can contribute R33 000 a year to your tax-free account and take out your gains without paying a cent in tax in the process,” explains Carreira-Miguel.
