Traveling is fun, and it’s also expensive. If it wasn’t so expensive, who wouldn’t want to travel to new places all the time?
For this reason, it’s very easy to spend more money than you should be or otherwise to just follow some bad financial habits while you are traveling. To prevent this from happening, it’s very crucial that you take decisive action to ensure that you are fiscally responsible while you’re flying from one country to the next.
Here are the top five financial tips for traveling the world:
Financial Tip #1 – Actually Adhere To A Strict Budget
It’s astonishing how many people don’t set a budget when they travel. Instead, they just put all of their expenses on a credit card (and many of those people fail to pay it off later as well, getting into serious credit card debt).
What you need to do is actually set a budget for every day of your travel time. Yes, literally everyday, and divide it into public transportation, food, hotel rooms, miscellaneous expenses, and so on.
Then, you need to actually follow that budget. Setting a budget will be a waste of time if you don’t adhere to it.
Financial Tip #2 – Book Early
Never book the first flight or hotel room package you see, and never wait until the last minute to book them either.
Instead, what you need to do is be scanning the fluctuating prices weeks if not months before you plan to leave. Generally speaking, the earlier you book, the cheaper it will be.
And remember, the prices can rise or fall rapidly. If you see an airline ticket that’s unusually low, you’ll have to act now rather than later if you want to get it.
Financial Tip #3 – Get A Guaranteed Exchange Rate
When you’re using a remittance service to convert your money into another currency, by far the most important piece of advice to follow is to get a guaranteed exchange rate in your quote.
When you convert money into another currency, you’ll have to pay both a percentage based fee and a margin of the exchange rate. The issue is the exchange rate is always fluctuating, sometimes by the minute, which means you can pay more than you otherwise should have to.
To ensure you pay a lower amount, you should ask for a guaranteed exchange rate in your quote from the remittance service, or otherwise, they’ll hopefully already include a guaranteed rate
Financial Tip #4 – Get Travel Insurance
Many travelers avoid getting travel insurance because they view it as an unnecessary expense. But truth be told, travel insurance can really save you financially speaking in the event of a medical emergency, if you have to return home early, or if you lose any valuable items.
The fine print in travel insurance policies can vary dramatically, so be sure that you actually read them. Ideally, your travel insurance policy will offer you up to one million dollars in protection for both personal liability and medical coverage, and up to two thousand dollars in protection for lost valuables and cancelled bookings.
Financial Tip #5 – Make Money While You Travel
It’s very easy these days to make money while you travel, and even if you’re only traveling while on a break from work, you can still earn money while on the go in a number of different ways: publish Kindle books, write articles or eBooks for other people, help design apps, do graphic design work, or starting a blog and making money from affiliate marketing are a small handful of ideas of what you can do.
You can either make a full time living working while you travel or you can just do a side job or two for extra cash. Either way, it will be pretty nice knowing that you still have some disposable income coming in for your trip.
It will also be smart to decide what you will do and actually start making money online before you leave on your trip so you have things squared away beforehand. Even if you only make $20 to $30 extra a week, that’s still valuable spending money.
Traveling The World
If you want to travel the world, it’s very important that you keep yourself financially afloat. Traveling is no excuse to become financially irresponsible, and to keep yourself from becoming irresponsible, you’ll want to follow each of these tips that we have set.