With people evolving, travel has almost become second nature. As more and more people are venturing out of their homes, travelling has increasingly become inexpensive and organized. While we are careful about packing all essentials for our travel, we often miss certain critical financial aspects. Below are some quick financial tips you should remember while travelling:
- Prepare a budget for your trip: Budgeting is the first step when deciding to travel or make any travel plans. Taking out time and making a travel spending plan helps you avoid overspending or running out of money in the middle of your travel escapade. While we estimate miscellaneous things like hotel, tickets, meals, etc.; we often tend to not account for shopping, toll, souvenirs, local travel, etc. Considering every expense you can view, you can arrive at an exact estimate should pretty much be what you need to subsidize your travel.
- Have a backup plan: Always make sure you have extra cash on hand when travelling. You never know when you will need backup to pay for something. It is always recommended to have multiple backup plans for money while traveling. It’s a must to get an additional debit or credit card to use during your trip, if you only have a single card that you use for every purchase, for an emergency. Keep a list of instant travel loan apps like MoneyTap, ready with you.
- Get Travel Insurance: Travel insurance is undoubtedly indispensable for international travel. Travel Insurance offers protection against missing baggage, medical emergencies, flight cancellations etc. You’ll discover that travel protection is significant when any of these things occur. Regardless of whether everything goes right, getting travel protection gives you peace of mind.
- Don’t Forget To Pay Your Bills: Because you’re going on a vacation doesn’t mean your bills back home will naturally pay themselves. They can. You should set up an auto-instalment framework through your net banking office, and you won’t need to stress over missing bill instalments while you’re away. This should be possible for pretty much anything like utility bills, Credit Card, internet bills and so forth. You wouldn’t want to return from your travel with a lot of unpaid bills.
- Know Your Limits: It’s essential to understand any daily spending limits on your card. Most banks waive the fees if you maintain the required minimum balance. Make sure the minimum balance isn’t too high as it can pose a financial risk if your card gets lost or stolen. On vacation, it’s not uncommon to make large purchases that might almost exceed your card limit.
Once you have an estimate and a payment strategy which is just right for your journey, you must safeguard your cash, cards and other necessary documents essential for travel. It is also vital to treat yourself while vacationing with all the planning and budgeting, whether it is a larger room, new outfit, or an incredible dining experience.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at firstname.lastname@example.org.