Everyone has a dream destination to travel in their bucket list. But the question is will you financially recover from ‘that’ dream vacation abroad? To make your travel stress free and enjoyable read on about Ideapreneur’s Travel financial tips. 

Are you one of the people who have caught the travel bug? Instagram, Facebook and various social media apps are filled with smiling images of vacationing people, young or old. However, not all parts of travel are as fun as it seems online. Many people end up spending way more than they planned to, getting them into financial distress.

You need to be careful about not just safeguarding your wallets from theft but also your budgets from going overboard due to unforeseen challenges that arise during an international trip.  

Before the Trip 

Create a Budget

Let's be realistic, most of us are not seasoned globetrotters, nor do we have enough earnings to splurge all our lifetime savings on a single trip. Determining what your budget is the first step that helps you plan your flights, accommodation, trip duration and experiences accordingly. Begin by listing all potential expenses including meals and even emergency funds. An important part of budgeting is also accounting to visa and immigration related fees. Be sure to check the recent updates from the country’s immigration website.

Start Planning Early

If this is your first big trip, odds are you’ve already started planning. That’s good — the sooner you start, the more time you have to save money. 

Advance booking for flights and accommodations can significantly save Similarly flight prices rise and fall with demand, seasonal  fluctuations and increases as your travel dates approaches. 

Notify Your Bank

Sometimes banks may become suspicious if there is a sudden transaction from unknown locations leading to payment issues as cards may be temporarily blocked. Check in with your bank if your cards are compatible abroad or if any arrangements are required to make the cards eligible.

Also understand that foreign transaction fees can be higher than domestic transaction fees so plan for that along with your budget. 

Carry Some Cash

Not all destinations are well equipped with Point of Sales card machines or ATMs. 

As travel is all about embracing the uncertain, it's best to be prepared. You can exchange the foreign currency at the local bank or even in some airports if available. As a rule of thumb, carry enough cash to cover emergency transport, and meals for a couple of days. But be careful not to carry too much as that may increase the risk of theft and losses. 

Always be careful to check average transport rates so that locals cannot  rip you off since you may not have an exact idea of currency and costs of living in the touristic destinations. 

This is also the best way to protect yourself from the forex traps such as counting errors knowingly done by forex centres in touristic destinations.  It also saves you from the  upheavals of forex rates that may cost you later on. 

Travel Insurance

While insurance is considered as an extra expense, it is an investment that proves its worth when needing to claim it.  

Be sure to confirm what your insurance covers and whether it adequately protects you and your travel buddies from related travel risks. Check the premium price to make sure it falls within your budget. 

Travel insurance can provide financial cover against risks such as loss of baggage, trip cancellation, missed flight, delay in flight, loss of passport, personal liability, medical evacuation, etc.

Before getting a travel insurance plan, make sure it provides you with adequate protection and choose the product that suits your requirements according to the place where you would be travelling. Also clear the terms and conditions of the insurance so that you do not violate any rules that may remove your right to claim insurance. 

During the Trip 

Use Expense Tracking Apps

Enable smart travel with smartphone apps to record your expenditures in real-time, and stay within your budget. It can also be useful after the trip to analyse where you spent more budget and plan for future trips accordingly. 

Money Mitra app has a detailed financial planning and expenses tracking section Vriddhi. It has features that enable cash flow planning, tracking savings, and also setting up alerts for upcoming payments and much more. 

Keep Digital Copies of Important Documents

In the rush of travelling and enjoying, it may not cross your mind to always secure your documents. By making digital copies to keep in your phone or laptop, you can reduce travel hassle. Safely store the hard copy of documents in a safe spot and travel with digital copies wherever possible. However, to prevent online theft of information, make sure these electronic devices and locations are safely stored. 

Pay in Local Currency to Reduce Bank Fees

Foreign transaction fees can be costly if you are using a card for payment each time.
In addition to bringing a credit card on your trip, you may want to carry both cash and a bank debit card for getting cash at ATMs.

Avoid Common Traveller Scams

Popular tourist destinations are teeming with scammers dressed as guides, drivers or photographers. 

Drivers often complain about a broken taximeter to charge tourists higher fees after the trip. There are also fake police who claim that you have done something illegal and try to may you pay fines for breaking rules that do not exist. Also be careful with overly helpful bag handlers as they may ask for hefty tips or refuse to return your luggage.  

Some forex scams exchange fake money or make mistakes in counting to profit while claiming to charge lower fees than banks. These scammers can also use rude language and become violent when you refuse to pay. 

Using ATMs and cards may be a better option if you are travelling in areas where such scams are more common. 

Conclusion

Travelling does not have to break the bank. It can be an enriching experience for anyone at any age. In fact, travelling can give you more ideas to grow in your profession and expand your business. 

So plan carefully and enjoy trips responsibly. Always keep in mind to follow the rules of the country you are visiting and learn recent news and updates to confirm whether it is safe to travel. 

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