There’s a lot to think about when you’re on an adventure away from home, and all sorts of points of failure that could derail your best-laid plans.
Having issues with money is arguably the biggest danger you face while traveling, so the following tips for tracking and managing your finances will serve you well if you want to avoid common cash-based catastrophes.
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Open an Online Bank Account
Having a bank account that you can access online is one of the best ways to keep on top of your finances when traveling. It’s quick, easy, secure, and it gives you more control over how and where you manage your money.
With an online bank account, you can transfer funds between different currencies with no or low fees, set up automatic payments for bills at home or abroad, receive notifications about transactions in real time, and even get rewards points from some providers when making purchases overseas. Plus all of this information is available 24/7 wherever there’s internet, so whether you’re away from home for a few days or months, managing your money has never been simpler.
Track and Monitor Spending with Mobile Apps
Keeping an eye on your spending can be a tedious task, especially if you’re trying to enjoy your travels, but mobile apps make it effortless.
You don’t need to keep receipts or write down every purchase you make. Instead, just link your bank account to one of the many available tracking applications, then monitor expenses in real time. Not only will this help you stay informed about how much money is flowing in and out, but some apps also come with budgeting tools that allow you to set spending goals so that you don’t overspend when abroad.
These days there are plenty of free options available, so no matter where life takes you, watching your finances doesn’t have to be a drag.
Exchange Rates and Fees Matter
When traveling abroad, it’s important to understand how exchange rates and fees impact your finances, especially if your budget is tight and you want to make every penny count.
Exchange rate fluctuations can cause the cost of purchases or withdrawals in foreign currencies to be significantly more expensive than if you had used a different currency. On top of that, some banks also charge hefty fees for cross-border transactions as well, so always check with your provider before making any international payments.
Knowing what these costs are ahead of time will help ensure you get the most out of every transaction, without having unpleasant surprises when looking at bank statements later on. Sometimes it makes sense to set up a specific bank account or credit card for this reason, as there are examples that are built specifically for travelers, with optimal exchange rates and fee-free spending in different countries.
Take Advantage of Credit Card Rewards Programs
Speaking of credit cards, it’s worth remembering that many products in this niche come with rewards programs included. These allow you to make your money go further, wherever you are in the world.
With many cards offering cash back, discounts on flights and hotels, or even free nights at luxury resorts, you can get maximum value out of a carefully-chosen card.
Obviously you’ll need to be comfortable with the terms and conditions of the card itself, and you also want to make sure you can afford to pay off the balance each month so you don’t hurt your credit history in the process. But if you’re savvy with your overseas credit card use, it’s a good way to actually build your credit score as well when you’re away.
Protect Yourself From Fraudsters
When using unfamiliar payment systems, it’s important to take steps to protect yourself from fraudsters. Whether you’re paying for items at a local store, or withdrawing cash from an ATM abroad, always double-check that the card reader is legitimate, and make sure no one else can see your PIN.
It’s also wise to bring multiple cards in different currencies, so that if something does go wrong with one, you’ll have backup options available.
Finally, only use secure networks when accessing online banking accounts, as this will ensure all of your financial information remains safe during vacation. Resist the temptation to rely on public Wi-Fi hotspots, for example, and instead look for a secured network which is only accessible to those with the right login details. Alternatively, use your phone’s network coverage to do this, so long as there’s affordable data access available in your destination.
The Bottom Line
As you can see, there’s no need to make sacrifices in terms of money management when you’re on the move. Harness all the tools at your disposal, and you’ll be the ruler of your financial future.
