It’s easy to be frivolous with money when travelling, but it’s important you manage your personal finances. Otherwise, you could quickly find yourself in a tricky position. COVID has prevented many of us from travelling over the last couple of years. Now all you want to do is relax when off on your travels. Don’t let your finances be an issue of stress!
Organize your holidays with our 5 tips to manage personal finance. Put your mind at ease and enjoy your time off, stress-free!
- Create a Detailed List of your Finances
First off, it’s important you take note of all your most important financial obligations. You could do this via an app on your phone or in a notebook. Rent, gas, electricity, food etc, are just some of your main priorities. Once you’ve established your essential outgoings, you can determine a reasonable budget for your travelling expenses. Don’t forget to factor in an emergency fund for anything that could go wrong whilst you are away. Now you have a clear expectation of what you can spend and the limit you can’t go over.
Whether you’re travelling for business or pleasure, we all like to spend a little extra money here and there. This could be on a nice dinner, souvenirs or whatever else makes you happy. Try to include everything you imagine yourself to spend on your list so it’s as accurate as possible. Don’t exchange currency at the airport as you won’t get a good deal here!
Make sure you take the steps you need to cover yourself financially when travelling,, This could be through your own back pocket, personal loans or even through friends and family.
2. Set up Online Banking
Tracking what you spend has never been easier thanks to online banking. Now you can follow all your transactions with the click of a button. So, whether you’ve taken a trip abroad or you’ve decided to explore your own country a little better, you can keep track of all your transactions in one place.
Some online banks have stricter security processes than others. Make sure you have downloaded and set up the banking app prior to your trip. Otherwise, you may not have all the information you need to set it up on the go.
3. Get a Backup Debit/Credit Card
Let’s face it, things don’t always go to plan. So, make sure you’re prepared for the worst by having a backup credit card to hand – and take a travel wallet to put all of your important documents and credit cards. Anything can happen so ensure you’re protected by having access to quick cash for car rentals, accommodation, food or other essentials you may need urgently.
If you prefer, you could use a card specifically for your travels. That way if you do have issues tracking what you spend, you could always make sure you never go over your budget by leaving only the amount you intend to spend on that debit card. If you prefer to use a credit card, then you can call the bank to set a spending limit. It’s important you set a reminder for any pay back deadlines for your credit card. The last thing you need is to incur any extra costs from missing your credit card payments!
4. Mobile Phone Plans
One of the worst things that could happen after travelling abroad, is being landed with a hefty mobile roaming bill! If you don’t already have one, make sure you get a data roaming plan. This will help prevent any nasty surprises upon your return. Even if you do have one, give your phone network carrier a call to ensure the country you’re visiting is covered in your roaming plan.
You could also bring a cheap phone out with you in case you break, lose or damage your own! That way you won’t be left without any form of communication if the worst does happen!
5. Travel Insurance
Travel insurance ensures you’re financially protected if something does go wrong on your trip. It’ll cover any losses you may incur. One of the main reasons people get travel insurance is to cover themselves or their family for any unforeseen bills. Travel insurance can protect you if you need to extend or cut short your trip for whatever reason. This could be due to lost or stolen possessions which include your money, baggage and passports. It will also cover medical expenses including personal injury or death. Depending on the type of plan you have, you could also cover yourself for any accidental damage or injury you may cause.
Travel insurance is available to buy from holiday companies, comparison websites, banks, supermarkets, and travel agents. Without travel insurance, you’ll be forced to pay out of your own pocket if anything does go wrong. Make sure the plan you choose, covers you in a range of ways. Many travelers have been left with bills totaling thousands of pounds when the unexpected happens. Don’t let this happen to you, get protected now!
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