I just returned from India trip. We go there once in every two years. We follow some basic steps before we go on the month-long vacation, to be with our extended family members. The first thing we do is use the credit card with no international transaction fee. also, we use Indian bank’s debit card when possible. We also remit some money to our India bank account.
There are many international travelers from countries like US and UK who travel in big numbers every year. Sometimes people don’t pay attention to possible monetary setbacks they may face upon returning home. Managing your money to get ready for traveling abroad is must-do for all global travelers.
The UK remains a beacon for international tourism and relocation, and it is currently established as the world’s eighth largest travel destination. It is particularly popular as a holiday resort, as while the nation has an estimated net migration rate of 335,000 at present a staggering 36.1 million people visited these shores in 2015.
Despite this, there is a rising trend in emigration from the UK, while a growing number of British citizens are also holidaying abroad more regularly. These numbers dipped in the wake of the Great Recession, but a steady level of recovery has enabled Brits to explore more of the world on a regular basis.
Getting the Travel Bug: How to Manage Your Money While Abroad
Whether you are exploring hidden corners of the world as part of your student gap year or looking forward to an extended beach holiday in the summer, it is imperative that you are able to manage your money while overseas.
With this in mind, here are some of the key challenges and how to overcome them: –
Calculate Exchange Rates to Ovoid Overspending
Purchasing a foreign currency ahead of an overseas trip can be deceptively costly, both in terms of real-time exchange rates and commission fees.
Monitoring and calculating exchange rates, therefore, provide you with an initial opportunity to save money, while also enabling you to create a realistic budget that caps your spending while overseas.
In terms of the former, resources like the Foreign Exchange website are invaluable as they include access to both live exchange rates and international transfer facilities.
So, not only can you achieve the best possible rate, but you can also minimize the commission costs applied to the transaction.
Additionally, calculating a precise exchange rate helps you to determine how much money you need for your trip, as you look to create a realistic and manageable budget that is capable of delivering a superior experience.
While you can, of course, take your debit or credit card with you, you only use this when necessary as it is likely to carry inflated costs and cause you to lose control of your spending.
Notify Your Bank to Avoid Charges
If you are inclined to use your bank card while traveling, you may be surprised to find a number of charges applied to your account when you return.
This is because banks usually charge a premium when cards and services are used abroad, with the precise cost to customers depending on the individual locations that they visit.
These can be negated if you liaise with your bank or building society prior to leaving, however, as they will then enable you to make withdrawals and electronic payments without incurring commission fees.
This type of proactive thinking also negates the risk of your card being blocked, as banks will often act swiftly if attempted withdrawals are made in unusual locations without prior warning.
Register with a Mobile Banking Application
This is perhaps the easiest and yet most effective money management technique for travelers.
Simply by downloading your bank’s Android or iOS mobile application, you can access your accounts in real-time while also completing instant payments and transfers regardless of your geographical location.
This is crucial when traveling, as it allows you to quickly identify potential issues and resolve efficiently.
If your monthly salary payment is delayed or your account slips into an unauthorized overdraft, for example, you can rectify this issue quickly by notifying your employer or transferring money from an alternative account respectively.
This will help you to avoid charges and, most importantly, ensure that you do not run out of money while traveling abroad.