Before leaving for your next overseas trip, take time to consider how you spend your money.
There are, in all likelihood, measures you can take that can lead to savings. Travelling internationally not only has you dealing with foreign exchange of currencies, you also need to determine what alternatives suit you best. While some aspects require your attention when you’re out of the country, you actually need to start even before you leave.
The Cost
Determine how much your journey might cost ahead of time, taking into account where you’re going and what you plan to do. Factor in airfares, accommodation, eating, drinking, local transport, and all other expected expenses. By creating a financial roadmap in advance, you know just how viable your travel plan is in the first place.
Keep Your Financial Institutions in the Loop
There’s a good chance you’ll end up using your debit and credit cards when out of your home country. However, they need to be operable in order for that to happen. It is common for financial institutions to block cards when they suspect fraudulent transactions, which might be the case if you use your cards without their issuers being aware of your travel plans.
Pay for Expenses in Advance
You may save money if you pay for some expenses such as your hotel stay and car rental in advance. By using the services of a specialist money transfer company to make payments ahead of time, you don’t have to worry about unfavourable exchange rates or steep fees that you might have to incur in a foreign country. Depending on where you live, some of the money transfer companies you get to choose from include CurrencyFair, Currencies Direct, OFX, InstaReM, and TransferWise.
Exchange Currencies in Advance
Most international travellers are of the opinion that it makes sense to exchange currencies while you’re still in your home country. Consider this – you’re trying to exchange British pounds for Indian rupees at a popular tourist destination in India. What are the chances of your getting a favourable exchange rate? Specialist money transfer companies score over most banks in this regard. In the UK, TorFX and Currencies Direct provide travel money solutions. Remember there are places where you will need access to cash, so make sure you have enough handy.
Prepaid Multi-Currency Cards
Several financial institutions provide prepaid multi-currency cards that you can load in different currencies. These cards may come with Visa and Mastercard affiliations, so you can use them at most ATMs and point-of-sale terminals the world over. In most cases, you get to load your card with desired sums of foreign currencies for standard fixed rates. However, these cards may come with different kinds of fees such as activation fees, loading fees, ATM charges, and inactivity fees. In some cases, you may be better off using your debit or credit card.
Using Credit Cards
One drawback with using credit cards outside of your home country is they typically attract overseas transaction fees. Fortunately, you can find cards that do not charge this fee. Using them to withdraw cash from ATMs, though, is a no-brainer, because you’ll still need to pay a cash advance fee and you’ll also need to start paying interest from the day of the transaction.
Other Tips
Before you leave, pay attention to these factors as well:
● Determine if you really need to take your expensive possessions
● Purchase health and travel insurance
● Determine how you’ll keep paying bills in your home country
● Carry spare credit or debit cards
● Check how much you’ll need to pay as fees for different kinds of transactions
● Get an international calling card
● Find out about dynamic currency conversion and steer clear of it
● Use public transportation when feasible
Conclusion
No matter whether you’re a first time overseas traveller or have been on the road before, a little financial prudence can take you a longer way. As long as you prepare in the right way, your travel plans should go relatively trouble-free and you’ll get to save some money too.
