Exploring a new place can be lots of fun. Whether this is your first time traveling or you’re an experienced traveler, you must prepare your finances before and during your travel. With foreign transaction fees, exchange rates, and bills, preparing for travel from a financial perspective can help save you stress while on vacation and upon your return. If you’re looking for tips on managing your finances from anywhere in the world, we’ve got you covered.
Set up your online bank
While you travel, you’ll want to keep a close eye on your spending. Not only will reviewing your finances while traveling help you keep track of your spending, but it will also help you flag fraudulent purchases. Luckily, most financial institutions offer online banking through their website or app, so you can review your finances from anywhere around the world. This will also allow you to transfer money if necessary, and ensure you’re paying your bills on time, even while you’re away. Budgeting while traveling is essential, so ensure you have the tools to manage your finances wherever you may go.
Inform your financial institution of your travel
Before you head out to travel, inform your financial institution or bank of your travel. When you use your credit or debit card outside your normal area, such as on international travel, your creditor may flag purchases for fraudulent usage. They do this to prevent fraudulent spending, and may even place your card on hold, preventing you from using it while traveling. To avoid this, call your credit or debit company to inform them where and when you’ll be traveling, so you don’t have to worry about your card getting locked.
Eliminate international fees
Not every credit card allows for international purchases, and many will charge a hefty fee for international purchases. If you plan on using a credit or debit card on your travel, call your financial institution to get information on travel fees. If you find out your card will charge you foreign transaction fees, consider enrolling in a travel credit card that waives these fees. You can find many options to choose from when it comes to travel cards, so review your options and the features of each to determine which card is the best fit for you. Opening a travel credit card can also help you build your credit score and earn rewards from your purchases to use on future travel.
Review the exchange rate
Before your trip, review the exchange rate between your home country and your destination. It’s best to avoid having to pay fees like exchange rates, so knowing this beforehand can help you manage how much you’re spending on exchanging cash for your destination’s currency. With your budget, you should have an estimate of how much money you’ll need while traveling, so you can withdraw it beforehand to avoid getting ripped off. If you’re traveling to a third-world country, you may not have ATMs readily available in your area, so it’s best to withdraw money in your destination’s currency beforehand.
Schedule automatic payments
While traveling, it’s not like your bills will go away or wait for you. Before heading out for your travel, ensure you set up automatic payments so your bills get paid on time without you having to worry. Missed bills like credit card payments or rent can harm your credit score or your financial history, so save yourself the trouble and set up automatic payments. If automatic payments aren’t offered for one of your bills, just make sure you set up a reminder so you don’t miss a charge while on vacation.
Get cash
You don’t want to carry wads of cash with you on your travel, but you may run into situations where cash is your only payment method option. Do your research, review your budget, and try to come up with a safe amount of cash to bring with you, and try to book a hotel that has a safe in your room, so you can securely store what you don’t need. Certain countries have issues with pickpockets, and tourists are typically their number one victims, so don’t carry all your money with you when walking around. Instead, store some in your hotel and bring a little cash with you on your outings, just in case. You’ll be glad you didn’t carry all your funds if something happens or you lose them.
Invest in travel insurance
Whether this is your first time traveling or you’re a veteran traveler, there’s a lot of discourse surrounding the idea of travel insurance. Like with any kind of insurance, it’s there to help you if you need it or if something unexpected happens. A lot can go wrong while traveling, from getting sick or injured, you get pickpocketed, your airline losing your luggage, canceled flights, and more. Instead of preparing for each thing that could go wrong while traveling, consider investing in travel insurance. Travel insurance can give you peace of mind that, should anything happen while on your vacation, you’ll be protected. Hopefully, nothing unexpected happens while you’re enjoying your travel, but should something go unexpectedly wrong, you’ll be super glad you got some insurance.
Track your spending
We mentioned that an online bank is invaluable to you while you are traveling. While having so much fun, it can be easy to get carried away with your spending. However, you must track your spending while traveling because you don’t want to blow your travel budget. Of course, you should enjoy your vacation, but you don’t want to create financial stress upon your return. Instead, take advantage of the tools online banking systems offer and ensure you track your spending.
Finances and Travel
With preparation, you can ease your mind by knowing that your finances are taken care of no matter where you are. From minimizing exchange rates and foreign transaction fees to making sure your bills get paid, it’s important to prepare financially for travel. With some of these tips, hopefully, you have a better idea of how to prepare so that you can enjoy exploring another part of the world.
