Travelling and Seeing the World is one of life’s great experiences for many. It offers a wonderful experience to learn about different cultures, see the most breath-taking sites the world has to offer and meet great people along the way. However, it could also mean spending your money savings. For those who don’t have savings like for some travelers that I met on the road, they manage their travel finances by availing personal loans in their home country. Having loans would also be a good strategy to manage your finances. In fact, most business companies use this financial strategy in running their businesses. I suggest that you use a loan calculator online in case you’re planning to avail loans. Having an idea about the amortization and available payment mode would play a vital part to know if availing loans would be a wise option for you.
Being on the road for more than 2 years now, finding ways on how to manage finances is already part of my routine. It would be very important to ensure that all the finances are up to date regardless of where you are. I want to share with you a few ways to reduce your costs so you can make your travel a little longer or at least on a less cost, making your travel experience more enjoyable.
Here are some ways to manage your finances while travelling:
CONSIDER GETTING A CREDIT CARD
You may consider getting a credit card. This is definitely a life-saver in case there are no available ATM machines to withdraw money. In my case, I also maintain one credit card which has a cash-back reward program. A certain portion of my purchases debit back to my account which I can use to pay the balances. Some credit card have e-miles program. This is also a great option for travelers as you were able to earn miles everytime you use your card. This miles can be used in exchange of for free plane tickets.
Some credit cards, offers pre-approved loans which you can avail anytime. It would be a great back-up in case of emergency. Especially when you lost some of your cards or you are encountering system problem with your banks. So in choosing credit card that you will bring while on the road, know all the perks that comes with it and find the best bank loan being offered by different banks.
OPEN AT LEAST TWO BANK ACCOUNTS
Having more than one bank account is ideal while you are on the road. In my case, I always have one of my ATM with me everytime I go out and I leave the other one in my room. The main reason I’m doing this is at least I have another plastic money that I can use in case one got lost. Just make sure that both your accounts have internet banking facilities so you can easily transfer funds from one to another or vice versa. Some banks have low or no international fees, so be sure to know about the applicable fees before opening an account.
GET THE MAXIMUM WITHDRAWABLE AMOUNT
Everytime I arrived in a certain country, I always research about the banks available. Because some banks do not impose ATM international transaction fees which cost around US$4-5 per transaction aside from the fees on your bank end which is also almost around that amount. You can use that saving for other things. In case, all the available banks have international transaction fees, I usually get the maximum withdrawal amount because the fees are the same regardless of the amount you withdraw.
DON’T PUT YOUR CASH IN ONE PLACE
While on the road, don’t put all your cash in your wallet or pocket. Segregate them and put them in different place like wallet, money belt, inside your socks or shoes. In case something worse things happen, chances are you still have cash with you.
So when you are planning to do long term travel, always include financial aspects in your planning. Choosing the right bank and financial strategies would definitely make your trips more enjoyable and memorable.