Money management when traveling needs a lot of planning on how to spend your money during the journey. Whether it’s solo travel, a honeymoon trip, or a family vacation, you need to know the money management skills while traveling. In this article, we will discuss how to manage your finances while traveling. If you follow these strategies, it will be easy to make sense of banking when traveling and you can save your money just to spend it in the right places!
Before you make a plan to travel to a specific destination, the first thing to do is to create a travel budget. Take the time to make a plan for your spending, so you know where your money is going. It will allow you to avoid overspending. Think how long you’re going to drive and how much money you’re going to spend each day when doing your money management while traveling.
Divide your money into different segments such as the amount you will be spending on stay, food, sightseeing, activities, and shopping, etc. By doing this you can create a proper budget and when you will be running out of money in any segment, you can plan accordingly further.
When you are traveling abroad, you must get some foreign cash before leaving. As soon as you land at the airport, you will need some cash in the local currency, possibly for a cab fare, to pay for a meal. Getting some money in advance saves you the hassle of searching for an ATM. This way, you will also be able to stop having to swap your currency at the airport, where the prices are not as favorable as those provided by local banks.
These days, the banks immediately freeze your card when they notice any out of regular activity. You must let your credit card companies know where you’re going to go and your travel dates before heading to your dream destination, so that they won’t freeze your card when they detect suspicious activity. You should also ask your bank for a customer support number in case you need any assistance while you are traveling aboard.
It is always confusing to decide on a flight for traveling as there are certain terms and conditions on it. Flight charges also vary with some conditions as some flights offer free luggage but their tickets are costly and some flights may offer cheaper tickets but they will charge extra for luggage. With wisely done money management while traveling, you can make sure that you don’t spend a lot on air travel.
You will also have bills to pay back at home while you are traveling. The utilities, cable, credit card, telephone, and loan are included in these bills. A smart idea is to automate these payments and, even while you are traveling overseas, it lets you pay your bills on time and fulfill your financial duties.
When you are at your travel destination you should check all the travel options available at the place. You should compare the price of train tickets, bus tickets, car or biker rental, etc., and then only you should pick the one that suits you. You can check the travel budget that you have made and choose one as per your plans for money management while traveling. With a smart decision, without wasting a massive amount of money you will be able to get the most out of your trip.
Major cities around the world have free entertainment facilities, free walking tours are carried out, and many museums are available for free to the public. Make sure that you list these facilities and take full advantage of the free things when you travel on your vacations.
Flight insurance is certainly important for international travel. It is rightly said that if you can’t afford travel insurance you cannot afford to travel. During your trip, unforeseen accidents may occur: illness, injury, missing luggage, a stolen wallet, canceled flights, etc. Travel insurance is an invaluable asset in these situations.
These days, credit cards are also accepted by most merchants all over the world. Although you should never forget to keep some cash in your pocket, for most of your transactions, you should use credit cards. This makes it much easier to make foreign payments because you don’t have to deal with currency exchange difficulties. Most credit card companies offer discounts, freebies, and extra luxury services on multiple usages. With card shopping, you can also save a fair amount of money via discounts and cash backs. There are a few things that you need to consider while using your credit card.
Many credit cards typically charge a processing fee of up to 3 percent on your overseas transactions. The good news is that today there are a lot of cool travel credit cards that waive this tax. While traveling choose the card that does not charge any extra transaction fee even if you are using it abroad.
Pick the card that offers certain benefits such as basic travel, theft, and auto rental insurance.
First up, it’s always better to use an ATM to get some local currency, rather than getting the currency converted. There may be some fee on it but you will get a good conversion rate. For currency conversion, you can also check the INRXRATE website to know the current and accurate price of a particular currency when compared to INR. You should avoid booth exchange, airport exchange or even train stations/ bus stands as they give the worst rates you can expect. The best scenario is to use your debit card for an ATM withdrawal. Also, it is better to use a credit card if you are traveling abroad.