Golden Rules of Money Management When Traveling
So you have already planned the itinerary, booked a hotel room, and bought two-way tickets. Bags are packed and you are ready to discover the world. However, traveling always has both advantages and disadvantages. While new experience is always exciting, it never comes for free. Planning a trip, you also have to think about how you will handle your money being in a new place/city/country. First of all, you have to choose the best way to make purchases.
Check out our list of rules of handling your budget and learn about the most effective methods of payment.
It is probably the easiest way of making purchases which, however, has its drawbacks.
If you know exactly how much you are going to spend, taking cash with you is a good idea. One trip to ATM will be enough not to think about payment methods during the trip.
Although you might be thinking you are very cautious and quite lucky, money can easily be stolen. To avoid such accidents, we recommend dividing the money into small parts and carrying only one of them with you. In addition, if you want to take out cash in a foreign currency, your bank will probably charge some fees. So be sure to check the amount of these fees to avoid “surprises.” You might also find it useful to learn some debit and credit rules for trips to another country.
This is a relatively stress-free option. You will most probably incur some extra expenditures, though.
Having a credit card while traveling abroad will bring you confidence. You will always know that you have enough money to pay for your meal or souvenir. Credit cards also have a higher level of protection when compared to cash. Moreover, you can take advantage of some travel discounts – just ask your provider what they offer. In case your card is stolen or lost, you are not responsible for the thieves’ charges. On the top of that, you can earn some extra money for every purchase abroad.
Even if you carry a credit card around, it does not mean you will be able to make all purchases with it. You still should have a little cash in your wallet to pay for a cab, make some small purchases on the street, or leave tips. However, arguably the biggest downside of credit cards is the obligatory transaction fees you have to pay being abroad. All credit card companies charge fees for foreign transactions. Although they might seem minor, they add up. If you travel abroad on a regular basis, you might want to check 2017 travel credit card options, which could help you save quite a lot.
Prepaid travel cards
This option is not as popular as the previous two but you still can consider it. All companies offer slightly different terms but in any case, you will have to use a prepaid travel card with the amount of money you put on it. This option will help you avoid unplanned expenses. And they have the same protections as your regular credit card. The downside is that you will have to reload it every time you run out of money, and you will also have to pay transaction fees.