For the majority of the population, travelling abroad has been anything but a reality in the last number of years. With the world slowly getting back to normal-ish, all those travellers who have been cooped up for so long are frothing to spread their wings. While you may be feeling that need to go somewhere abroad, budgets will no doubt be tighter than ever these days.
With inflation ensuring that prices of everything continue to rise, travelling is going to be more expensive overall, and your money does not buy what it used to. Hiring an experienced financial advisor, if you haven’t already, can open up your finances and show you a plan to get you budgeted organised, put money aside for travelling and help you to manage your money as best as possible once you’re on the road.
Let’s take a closer look at some very useful tips that you can use to keep yourself financially solid while travelling.
Prepare A Strict Budget
This first piece of advice comes first for a reason, as it cannot be stressed enough that a detailed travel budget is essential when you are heading off on your next adventure. One of the scariest experiences a traveller can have is being stranded in a foreign country with no money. Make sure you do your research, as these days, the prices of just about anything anywhere can be found with little effort.
When you’re creating your budget, it’s crucial that you don’t leave anything out, so make sure to include everything from daily meals and drinks to museum tickets and transport. If you are the type that likes to travel without much of an itinerary, which is great, simply allot yourself a certain amount for each day, and ensure you don’t go over it. Lastly, it is extremely important to budget funds for emergencies. The amount will depend on the person, but you want to be able to enjoy your trip and not worry too much if there are unexpected issues you suddenly have to fork out for.
Don’t Cheap Out, Get the Insurance
There is not a single person in this world who can predict when an accident or emergency situation will occur. For this reason, make sure that you go ahead and pay the extra money for travel insurance. You are not insured for anything while you are away, and while it may cost you extra, having peace of mind is priceless. The last thing anyone wants is to get sick or have an accident while away, then wake up to a massive bill because they didn’t get the insurance.
Your Bills Are Still Due
Not that long ago, when you were planning a vacation, you had to let a whole bunch of people know and set up plans to ensure your monthly bills were paid on time. Thankfully, technology has made a lot of this quick and painless. Most banks with online or mobile applications will allow you to schedule payments in no time, you just have to make sure you remember to do it. There are some exceptions to this, as some businesses and service providers are still doing things old-school. If you have a recurring payment for a business like this, call them and explain your situation, as you can be sure this will not be their first rodeo.
Credit Cards Are Important
There are a couple of reasons why credit cards are important when you’re travelling. Firstly, if you don’t tell your card issuer that you are going on a trip, they will most likely cancel your card for fraud after the first or second purchase. Make sure your bank knows the dates and places you will be so you don’t get any surprises while you’re away.
Secondly, try to put the bulk of travel purchases on a credit card and pay it off when you get home. More and more places around the world are starting to avoid cash, and cash is also something that can be stolen with no recovery options. Your credit cards come with insurance and all kinds of technology to track purchases, and they are a much safer option while abroad.
Finally, you also want to ensure you keep cash on hand, both in your home currency and the currency of the place you visit. Yet again, some businesses push quickly towards the future while others stay behind. Certain places may only accept cash for payment, and you don’t want to be left without.
Enjoy Your Travels With A Little More Peace Of Mind
The reason that most people travel is to relax and enjoy themselves. If you are not prepared when you go abroad, you are asking for something to go wrong, which could easily result in a terrible experience. Before you head off, make sure that you create a financial plan as to how you will manage, spend and save money on the road. Once you have a plan in place, you can hit the road with a little more peace of mind, knowing that you are in control of your finances.
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