5 Smart Ways to Manage Money While Traveling
If you are preparing to travel abroad and staying there for an extended period of time, it’s essential to have your finances in hand, so you can spend your time exploring your destination and enjoying your time, rather than stressing over money. Whether you are traveling for a honeymoon holiday or a family vacation, managing your travel money should be an important part of planning. Knowing how you will manage your money while traveling is essential to travel safely and will save you plenty of trouble.
Create a Travel Budget
Budgeting should be one of the most important parts of your travel plan after you have finalized your travel destination. Take some time to make your spending plan so that you’ll be able to track where your money is going. Creating a travel budget helps you avoid overspending during your visit so you don’t run out of money halfway. Having a budget in place means you will not be returning home with a huge credit card bill. Consider the days you will be away and create your daily budget. Include the cost of accommodation, meals, transportation, souvenirs, activities, etc.
Set up Automatic Payments
When you are away for vacation, you still have to pay your bills back home including utility, telephone, cable, credit card bill, loan payments. Therefore, it is good to automate these payments so that your bills are paid on time. Automatic payments help you fulfill financial responsibilities when you are thousands of miles away. When you return home, you have no pending bills and overdue payments.
Get Some Money Exchanged Before You Leave
As soon as you reach your travel destination, you’ll need some cash in the local currency for a cab, public transportation, or a meal. Having some local cash already in your pocket saves you from the hassle of seeking out an ATM at the airport. If the ATM is out of service, you may waste a lot of time to find another ATM. Before you leave, you should exchange some foreign money at a large bank in your country. If you are out of cash in a foreign country receiving money from a friend is quite easy and convenient with Western Union.
Inform Your Bank About Your Travel Plan
It’s important to inform your bank about your travel plan before you head to your destination. Tell your bank or credit card company about the dates of your travel and the country you will be visiting so that they won’t freeze your card when they detect unusual activity. Some banks may not allow card usage in a foreign country unless you request it. So, it’s important to get your card activated for overseas usage.
Use a Credit Card for Purchases
Although it’s important to keep some local cash on hand while traveling in a foreign country, you should use a credit card for the majority of your spending. This way, you can make hassle-free payments without having to convert currency and you can also enjoy the lowest exchange fees possible. Also, it’s easier to hide and handle a credit card rather than cash, and you’ll less likely be targeted by pickpockets.