5 Money Management Tips for Traveling Abroad

Oh, money management. So easy to understand, so difficult to actually put into practice. Money management is definitely one of the most important things that a person has to learn before they start traveling long distances, mostly because it will not only save them money, but it will be able to give them an extra holiday with the money saved as well.

However, this is easier said than done, but even so, it is not impossible. The most important thing is to actually know the tips and tricks on how to properly manage your money for your trip, so if you are planning a holiday this year, take a look at this guide and manage your money like a pro.

Create a budget

The most important thing to do, and the first thing to do before you continue with anything else, is to allocate your travel budget. This is very important as it will tell you where you can spend a lot of money and where you would have to cut costs, as it is always better to be safe than sorry, First of all, allocate the sum that you are willing to spend, including the tickets and the accommodation. 

Once you do that, and you pay for the accommodation and the plane tickets, see how much is left and divide it into the number of days that you will spend there. Determine the amount of money that you want to spend on museums, galleries and things like that, and always have a special budget for wining and dining.

Pinch whenever you can

More often than not, we do not care about the difference of a couple of bucks. This basically OK as a couple of bucks will not save us from bankruptcy, but then again, if you can save those two dollars from different things, you might be able to save enough money for a dinner, for example. There are many ways to do this. Apart from buying from places that are cheaper (comparing prices at different markets) and not visiting the city center for a dinner but opting for a place that is a bit out of the center, there are also other options that you probably haven’t thought about. 

For example, getting a credit card promotion free luggage is, a great way to save money on the luggage and use it for something else. If there are more of you with this credit card, just imagine the money and what you can do with it. Also, try to find different coupons and ways to make your plane ticket cheaper.

Beware where you exchange your money

The first rule when you land at your destination is not to exchange a lot of money at the airport. If you do not have the currency of the country you’re at, exchange just enough for a taxi or the bus to your hotel, and ask there where you can find an exchange office with good rate. Another thing that you should never do is exchange money in malls. 

The exchange offices in most malls around the world are created for the sole purpose of earning extra money as plenty of customers go there without exchanging their money beforehand. Bottom line, you can always use your credit card to pay for your expenses there and save the cash you have for emergencies.

Opt for travel insurance, always

In 2020, it is not very advisable to travel without travel insurance. Yes, this would mean spending a bit more on the pre-trip essentials, but it is always better to go to a destination knowing that you will not have to pay for your medical expenses (if any). As they say, if you cannot afford travel insurance, you cannot afford to travel. Even if everything ends up fine, think of the money spent on travel insurance as the price of peace of mind.

Mind your valuables

You probably know the phrase “Never put all your eggs in one basket,” and this becomes a general truth when it comes to traveling. You probably have plenty of different valuables, such as your phone, wallet and jewelry, so it is the best idea never to keep them in the same place. 

This means that you should never have the credit cards and all of your money in the same wallet – rather, split them somehow, keep some money in your pocket and some in your hotel room/apartment. This how you will prevent losing everything if something gets stolen. 

Budgeting is important, and it should definitely be taught as a subject in schools. Yes, it’s that important. Not only can it make or break your whole holiday, but it might also give you the option of traveling more and actually saving money which you can later use for something else. A dollar at a time!