Planning a vacation abroad? 5 important things to remember when it comes to money
Planning a vacation abroad? 5 key money-related things to remember
- If your card is not loaded with the local currency, you will be charged a currency conversion fee on each transaction.
- When traveling to a foreign country, a credit card is an expensive way to spend
- When you make a transaction with a credit card or forex card abroad, you are charged a price that is higher than the actual value of the transaction.
New Delhi: Traveling abroad requires advance planning, especially when it comes to money management and finances. Corona has delayed travel plans for many, and if you are planning a long overdue vacation due to the pandemic, there are some key things to consider to make sure your trip is worth it.
Here are some key tips to keep in mind when planning a trip abroad:
1. Create a budget: Before even booking your plane tickets, you need to set up a travel fund where you have to put money from your salary to fund your vacation. Once you have a rough idea of where you want to go, how long you will stay, what you would like to do, and how much you would need for shopping and souvenirs, you can plan your trips. finances and get an idea. how much money you would need for the whole vacation.
Try to set aside a set amount each month to go into your travel fund. You can use a financial management app or tool on your phone to track your spending and stay on budget. Once your trip begins, stick to the budget to avoid overspending and tapping into other savings.
2. Avoid exchanging currency at the airport: A bureau de change is available at the airport and while this is an easy way to exchange currency, you should avoid it at all costs. Do not exchange currency at airports as they can charge up to 15% more on an exchange, which can seriously disrupt your overall financial estimate. You will definitely get ripped off. Only change your currency at the airport if it is an absolute emergency. There is no chance of negotiation at the airport.
3. No Credit or Debit Card Only Forex Card: A big decision to make when traveling abroad is how to transport the currency you will be using there. Travelers are often confused whether to carry cash, credit and / or debit cards, travelers’ checks, or a currency exchange (forex) card. Many people think that the best option for traveling abroad is to have a credit card with cash. However, not many people know that using a domestic credit card can be expensive abroad. In such a situation, a forex chart can come in handy.
If you were only trading currencies thinking that you would save money on the exchange just by swiping your credit or debit card abroad, you are completely wrong. Credit and debit cards carry your currency, so when you swipe it abroad, the exchange rate is added to the actual expenses and so you don’t save anything but lose money on every transaction. A forex card, on the other hand, carries the local currency, which ensures that no exchange fees are added each time it is swiped.
4. Travel insurance: If you have travel insurance, it is easier to deal with disruptions such as lost luggage / documents, delayed trips, personal accidents, dental and medical emergencies, and elderly health issues. Choosing the right insurance plan is important. Family travel insurance is a safety net that ensures that holiday glitches like flight cancellation, personal accidents or other unforeseen situations don’t ruin your well-deserved break.
Plus, medical emergencies or lost baggage will only increase your costs. So, to save yourself from this unforeseen situation, you should take out travel insurance for the family. Some countries have already made it compulsory to purchase a travel insurance policy when visiting the country. Family Travel Insurance is a travel insurance policy that covers the whole family.
5. Avoid ATM withdrawal fees: If you withdraw money using your Forex card at an ATM, a fee is charged, which varies from country to country. So you should avoid withdrawing money with your forex card until it becomes necessary. The more money you withdraw, the more ATM withdrawal fees charged add up. “To avoid that, find out if you can get a card in the Global ATM Alliance, where these fees can be waived if you use a partner ATM around the world.