Top 5 Tips to Prepare Financially for International Travel

It’s no secret that traveling abroad entails spending money, so it’s better if you are well-equipped to fund your itinerary.

One way to have a less stressful excursion out of the country is to ensure that your finances are in order.

From ensuring that your online credit card application is approved to investing in travel insurance, we have listed down some top tips that you should keep in mind before you wander around the world.

Fix Your Finances

Whether it’s a dream vacation or you want to squeeze in some sightseeing after a business trip, traveling abroad can be something that broadens your horizons. Not only will you get to experience something different from the usual scenes in your life, but you also learn more about the culture, people, and lifestyles of the country that you are visiting.

If you want to get the most out of your international trip, then it would be ideal if you also have the means to fund it. Having enough money in cash or in your credit card will allow you to pay for accommodation, transportation, experiences, food, and other items. Adequate funding is also a necessity, especially when unforeseen circumstances arise.

So before you pack your travel luggage, here are some tips to help you prepare financially for your trip abroad:

1. Save Up

It’s never too early to start saving up for your trip. It does not matter if you are still in the daydreaming phase or already rolling out specific itineraries. What matters most is that you plan your holiday budget well.

Traveling abroad need not be expensive, yes.

Even if you decide not to splurge on extravagant hotels or dine in five-star restaurants, you will still need to spend some of your hard-earned money on travel essentials like food, accommodation, and transportation.

Start by determining where you plan to go and how long you’re going to stay there. Then you can make a list of the things that you need to spend money on like your plane tickets or accommodation. Identify the must-haves and the nice-to-haves, so you also know what needs to be prioritized.

For example, when staying in the city, you don’t need to stay at a fancy hotel if you plan to be out all day. However, you can decide to spend more when staying at a beach resort since you’ll be spending most of your time there.

After you have identified the items that you need to pay for, then create a budget. Your budget will tell you how much you need to save at a specified period until that day when you’re finally going on your much-awaited trip.

You can decide to set aside a portion of your monthly salary or business profits into your travel fund, whether through a bank’s automatic transfer facility or even in your piggy bank.

2. Invest in Travel Insurance

Having travel insurance is essential for international travel. It can give you peace of mind knowing that you have a safety net for unforeseen travel emergencies. Besides providing you medical coverage while abroad, travel insurance can also protect you from travel delays or cancellations, delayed, stolen, or lost baggage, illness, injury or death, and other travel mishaps.

Some international credit cards offer some kind of travel insurance or coverage for cardholders. Depending on the card, you may also be entitled to travel accident insurance or may be compensated for any travel inconvenience. Provided that you have paid for your tickets with your credit card, you can claim the insurance on delayed or missed flights or delayed and lost luggage.

Check the travel insurance policy on your credit card to get more information about the applicable terms and conditions.

3. Have Enough Cash on Hand

It’s also better to have some cash on hand when you travel. Since you’re not sure about the accessibility or availability of ATMs in the country, it is ideal to have money you can convert into local currency to pay for small items. This will be handy when taking public transportation or during those times when you cannot use your credit card, like when shopping at bazaars or from sidewalk vendors.

To be better prepared, research the local currency and scout for the best exchange rates before leaving. Also, watch out for hidden fees and inquire about extra charges before exchanging currencies. Make sure just to have enough cash to pay for initial expenses but not so much that you’d be uncomfortable carrying around a considerable amount.

4. Apply for the Right Credit Card

One of the most critical steps you can take to be financially prepared for a trip is to apply for a credit card. Since not all credit cards are created equal, you should go for ones that offer the best travel advantages. Some cards are specifically designed for those who want to travel, and these cards give out incredible perks.

Besides getting as much as a twenty-five percent cash back on groceries or fuel spend, some travel-specific credit cards also offer the fourth night free on hotel bookings. These cards can also give you as much as a 50% discount on food and beverages with partner merchants and complimentary golf for at least a month. Depending on the kind of credit card you apply for, you can also get travel incentives.

Premier credit card companies usually partner with leading travel providers to bring you exclusive offers on airline tickets, accommodations, car hires, and more. Your credit card can also give you access to over a thousand airport lounges around the world.

Some cars also offer little to no foreign transaction fees when used abroad. Depending on which credit card you use, you may also enjoy zero transaction fees when withdrawing money from that provider’s dedicated ATM abroad.

5. Notify Your Credit Card Company

When you’re off to see the world, it would be smart to notify your credit card company where and when you’re going. Doing so will help prevent inconveniences, such as having your card blocked or rejected while you’re on your trip. Updating your credit card company will only take a short while and may even be done using an app.

Enjoy Your Escapade

Whether you plan to splurge or cut corners while on an international trip, being financially prepared will do you a lot of good. Not only will it give you peace of mind and security, but it can also save you, especially in tight situations.

Having enough local currency or an internationally acknowledged credit card, for example, can pay for memorable activities or experiences that you will treasure forever.

For more fun and worry-free travel adventure, it’s best to be financially secure.