Tips for Responsible Money Management While Traveling
While 35 percent of American travelers plan to take fewer vacations during the year, there is evidence to suggest that they will invest more money and are looking for more meaningful vacations, according to MMGY Global’s Portrait of American Travelers report. If you’re someone who has been saving hard to travel the world, the last thing you want to do is to manage your money badly while moving from country to country. There are a variety of ways to save money on travel and these considerations should be part of any preparations and here are some tips to help you plan ahead.
Having Two Accounts
Learning to embrace responsibility for yourself and your finances is part of any travel experience so taking control of money management early on is essential to avoid any pitfalls while on the road. It’s a good idea to set up at least two bank accounts: one for day-to-day transactions and an additional savings account. This will keep your traveling funds more secure because your cash isn’t kept all in one place and it will also help you keep on top of transactions. Opening a savings account will give you a higher rate of interest than a current account and therefore earn a healthy interest without you actually doing anything!
Some people might not like the idea of taking a large sum of money out from an ATM at any one time but choosing to do so can save you cash by avoiding high withdrawal fees. Shop around before you leave to you set up an account that offers low withdrawal fees so you won’t be charged a small fortune for using it. It pays to be wise to using ATMs abroad and once cash has been withdrawn, place it in the safe of the accommodation you’re staying in to avoid having to carry it around with you.
Use Travel Loyalty Rewards
While taking out credit cards can get you into more financial trouble if you use them too freely, there are plenty on the market that offer loyalty schemes which give discounts on airfares, hotels, shopping and other useful travel experiences. Essentially, the more you spend on these cards, the more their offers and perks will add up quicker so it’s important to do research to find the best one that suits your particular travel needs in order to maximize any earning potential.
In the same way as many aspects of life, by planning ahead and being prepared you’re more likely to reap the rewards and save money while traveling so you’re ready for all eventualities.