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The freedom that comes from traveling can make even the most seasoned travelers exceed their travel budget.
Although you might have planned your trip abroad by securing the best airfare and accommodations deals, miscellaneous expenses, including public transport, parking tills, and sometimes tolls, are likely to be forgotten.
To avoid being overrun by unforeseen travel expenses, have a glance at typical money mistakes by travelers and learn how to avoid them to keep your travel budget intact.
Planning Without a Proper Budget
If you’re planning a vacation overseas, a little budgeting will go a long way to ensuring a stress-free vacation. You must plan for the expenses you will likely incur on your vacation so that you can spend wisely.
Failure to do so can lead to you running out of money in the middle of your trip, and you’ll be stressed and frustrated. Keep a generous estimate for expenses such as sightseeing, transportation, souvenirs, and food so you may enjoy any last-minute activities on your trip.
As a financial safety net, some people set aside three to six months’ worth of spending.
Failing to Book Airfare and Accommodation in Advance
Whenever you wish to take an abroad trip, it is wise to plan by booking the airfare and accommodation, weeks in advance.
If you are looking to avoid spending more on ticket prices, then you should avoid last-minute bookings. Rushed bookings can also lead to costly errors such as double bookings and even forgetting to book a ticket or a place.
Not Considering Luggage Requirements
Excess baggage costs will almost certainly incur charges if your luggage is overweight. These costs might run into hundreds of dollars.
Additionally, if you go on a budget airline and fail to satisfy the strict baggage requirements, you may be charged extra penalties.
Having a Limited Access to Cash
The last thing you want when you’re on the road is to run out of cash, and as any seasoned traveler knows, things don’t always go as planned.
Common traveler misfortunes such as blocked accounts, stolen wallets, and missing credit cards can leave you stranded if you don’t have a backup plan.
At the very least, bring two separate cards with you. For emergencies, this could include a sufficient money card as well as a debit or credit card. It’s also a good idea to keep some cash on hand as not all vendors take credit cards, so it’s a good idea to travel prepared.
Not Earning While on Vacation
A long and fun vacation is likely to put you behind on other bills at home. It would be great if you have a source of income to keep you afloat while enjoying your holiday.
Among the many options for income amongst travelers, stock investment is a common source of income. Share prices tend to decrease as big institutional traders and fund managers go on vacation during the summer.
Whether you’re on an African Safari or a beach in Hawaii, a stock tracker will keep you updated on stock prices and help you trade and realize gains.
Aside from saving, you can monetize your holiday experience by sharing a travel documentary with friends and fans online and make some decent earnings.
Not Understanding Exchange rates and Foreign Transaction Fees
You may incur foreign transaction fees if your credit card or debit card converts money into foreign currency or passes through a foreign bank.
It is common for money exchangers at airports to overcharge desperate tourists by offering far inferior rates. Avoid exchanging money at such tourist traps for you to get value for your money.
Fees for foreign transactions can quickly mount up and make a dent in your budget. Choose a card that does not charge foreign transaction fees to avoid these charges.
It’s also advisable to pay in cash in the local currency to avoid these fees.
Failure to Inform Your Bank about Your Travel
Because of the prevalence of identity thefts that have come to light, banks normally do not allow card-related payments in other countries without previous notice.
If you travel abroad without informing your bank, your card may decline at a POS terminal in another country.
It is essential to notify your bank ahead of time about your trip plans to avoid the unnecessary frustration of declined payments and calling your banker on your vacation.
Failure to Purchase a Travel Insurance Plan
Unfortunate eventualities can lead to a premature return from your holiday or travels. While you can’t anticipate the future, you can protect yourself by purchasing travel insurance. Travel insurance policies differ by the provider; however, three primary needs are:
Medical: This will cover the costs of hospital stays, medical care, and emergency evacuations in other countries.
Trip Cancellation: Your insurance will compensate you if you are not able to travel due to circumstances beyond your control.
Baggage: If your luggage is lost or stolen, this will cover you.
When planning a vacation, don’t forget to include travel insurance in your budget. It’s precious to be able to save thousands of dollars if anything unforeseen happens.
Not knowing about your Destination’s Tipping Culture
Tipping culture differs from country to country. Some countries comply with it, while others do not.
In some cases, tips form part of the bill. Make sure to read your bill attentively and inquire whether you can avoid paying too much.
Conclusion
Failing to plan is planning to fail. This also applies to travels. Some travels take up to months in duration and the best way to ensure you enjoy your holiday vacation with your family and friends is to travel financially prepared.
While it is difficult to plan perfectly for holiday expenditure and foresee any possible hiccups, a savvy traveler can avoid such common financial pitfalls by planning.
It is wise to also plan for your absence at home by suspending any running bills and subscriptions such as phone and Wi-Fi for the period you will be away. You could use that money for your travels instead.
