It can be challenging to manage your finances when you are travelling around the world as every country has its own currency and carrying cash everywhere can also be risky during travel. Apart from packing all your required travel stuff, you should also make copies of credit card and bank account information to avoid any financial problems while travelling abroad. Here are some useful tips to manage your finances while travelling,
- Set up a Savings Account with Online Banking
Before you start your travel, you should ensure you have enough money to cover up all your expenses during travel. You can set up a savings account with online banking facility so that you can access it anywhere. Having your money in a bank account can make you feel secure which you can access anytime through online banking and make payments for your hotels and other travel bookings. You should set up a high yield savings account which high-interest rate and start depositing the money required for travel to this account. Once you have saved money, you will also have some additional interest which you have accumulated over a period. You should open a savings account with a bank that does not charge you any service fees and does not have any restrictions on minimum balance.
- Having a Debit Card or ATM Card to Withdraw Cash
Though cash is the primary method to purchase the needed goods during travel, there can be some places where it’s not safe or advisable to carry a lot of cash. Hence, you should have an ATM card which is linked to your savings account and withdraw cash whenever you need for shopping. You should open an account with an international bank so that your ATM card can be used anywhere to withdraw money. Also, it’s advisable to have one primary card and another backup card in case if your primary card gets stolen during travel.
- Using a Credit Card
Credit cards are another alternative way to make instant payments and can be used for shopping as well. Credit cards can be handy especially when you are travelling abroad as it avoids the need for cash and can be used for hotel booking, ticket booking, online shopping and a lot of other purposes. There are different types of credit cards available and each card has its own pros and cons. While some cards charge you with very less interest rates, some cards offer reward points for each transaction you make through the card. You can compare the best credit card deals online and save a lot of time in finding out which cards offer you the right features suited for your needs.
- Cash and Traveller’s Cheques
Though there are different payment options, it’s always advisable to carry some cash in hand while you are travelling to remote places where ATM cards and credit cards might not be usable. Before you travel abroad you should first make a note of the foreign currency and visit an exchange where you can buy that foreign currency in exchange for your local currency. You can also use currency exchange apps to transfer the money online. Also, check online for the best exchange rates and choose the exchange which offers the best rates. Another safe alternative for cash is a traveller’s cheque which is also convenient and is accepted almost everywhere. You can cash your travellers’ cheques at all banks and other exchanges in all major towns across the world.
- Using Mobile Wallets
Mobile wallets have become popular nowadays and have become the preferred payment method in this modern era. There are popular digital wallets like Google’s Tez, Skrill, PayPal, Square etc. which can be used for shopping and online payments. They are safer and convenient than carrying cash around while travelling the world.
When you are travelling you should always have multiple forms of payment enabled so that even if one of the payment options is not available you can choose another. You should always have your credit card and ATM card handy with you so that you can withdraw cash anytime. Better to have some cash in case of emergency and you are not able to access a bank or ATM machine.