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Managing Your Money When You’re Traveling

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It can be tricky to stay on top of your money matters when you’re at home, but when you’re traveling, it becomes even more difficult. That’s because many of the systems and processes that you usually need will be located in a different country to wherever you’re visiting. As such, it’s important to take the time to think ahead and put all the right pieces in all the right places. In doing so, you’ll ensure that your traveling adventure doesn’t impact your finances any more than it needs to. In this blog, we’ll look at some handy tips to keep in mind before you go on your next trip.

Automate Payments

You may be traveling, but it’s not as if your life back home will suddenly be on pause. You’ll likely have a lot of payments than you need to make; failure to do so when you’re traveling could mean that you return to one big mess. It’s difficult enough to come back after a fun trip without piling on extra troubles for yourself! You can ensure you don’t miss any payments by automating them before you leave. That way, the money will automatically be taken from your account — just be sure that there’s enough money in the account before you go!

Earn As You Travel

Traveling is fun, but expensive. As soon as you step on a plane, you’re setting yourself up for a lot of expenses. And that can quickly add up to financial problems if you’re spending, spending, spending, without any money going into your bank account. You won’t suffer too much if you’re using paid vacation time, but if you’re a business owner, freelance, or anything else, then you’ll need to think about the impact your trip will have on your bank balance. One smart move is to earn money while you travel. You won’t want to work too much, but if you can do a few hours here and there to top up your bank account from time to time, then you’ll return to a much rosier bank account. 

Leave a Credit Card Somewhere Safe

It’s highly unlikely that you’ll run into any difficulties when you’re traveling. Still, you can never be quite sure of what’s going to happen. In order to maintain your finances, it’s recommended that you leave a credit card somewhere safe (such as, for example, the safe in the hotel room). That way, if you do lose your wallet, then you won’t be completely screwed. You’ll still have access to some of your money. Of course, you’ll hope that you never have to rely on that credit card that you’ve hidden away — but if you do, then you’ll be very thankful that you took the time to give yourself some insurance. 

Use Digital Solutions

Some people just have a single bank account. But other people who are more seriously invested in their finances have multiple accounts. And those ones need a little more management. You won’t be able to just leave them until you return home. As such, it’s important to find ways to manage your assets wherever you’re traveling to. In this day and age, there are plenty of companies that offer a digital-first banking solution, which will allow you to access and manage your assets while on the move. You won’t need to dedicate significant amounts of time to managing your affairs, but it can be convenient to keep tabs on what’s going on, even when you’re in a remote country. 

Figure Out the Cheapest Way to Spend

You’re going to spend a lot of money while you’re traveling. However, some people accidentally end up spending a lot more money than they should, all because they’re not paying in the correct way. This is especially an issue if you’re planning to use your normal home card to pay for things while abroad. It’s important to see whether it’s better for you to pay in the local currency or your home currency. In most cases, it’s better to pay in the local currency and let your bank take care of the conversion — but don’t assume this is the case. 

Stay On Top of Your Budget

It’s easy to get a little excited when you’re traveling. You can adopt a “we’re only here once” mentality that can cause people to spend like there’s no tomorrow. Only there is a tomorrow, and when you’re back home, you’ll be full of regret (for your bank balance, not the memories!). To avoid this future problem, it’s best to develop a budget before you leave home, and then make sure that you stick to it. You may want to set aside a portion of money that you can use just in case an awesome opportunity presents itself.

Tell The Companies That Need To Know 

Banking entities take fraud seriously, which is very good for your peace of mind, but can make things a little tricky when you’re in a foreign country. If no one from your bank knows that you’re in Japan, then they may automatically block your account if they see that your card is being used in Japan. The solution is to tell them that you’re going to Japan! There have been plenty of people who have accidentally ended up without access to their money, all because their banks were doing what they should be doing — making sure their accounts were safe. 

Get Insurance

We can’t stress this enough — get a good level of insurance coverage before you travel. You’ll hope you never have to use it, but if you do, then it can be the difference between having an inconvenient experience while overseas and having to declare bankruptcy. No one loves the idea of getting insurance, but it’s a key part of ensuring that your money will be protected. It’s important to check what your insurance does and does not cover; the cheaper policies are often not worth the paper they’re written on. Opt for high-end insurance that offers additional perks for total peace of mind.