Traveling comes with several benefits. It expands your horizon, lets you meet new people, helps you step out of your comfort zones, and allows you to make once-in-a-lifetime memories.
On top of all, it’s a worthwhile investment for your physical and mental health. However, while traveling can boost your optimal well-being, it can drain you financially. It’s the last thing you want to experience on, and after a trip, so we’ve got you covered. I’ve traveled extensively around the world and being financially independent has helped me enjoy everything without worrying about my bank account.
Here are five things you should prepare to avoid busting your finances while traveling.
Planning your trip ahead of time saves you a lot of money. The top perk is that you can enjoy more affordable advance airfare if you book your flight earlier. Similarly, you can have ample time to compare accommodation rates and destinations.
One survey revealed that planning is one of the best ways to save on travel costs. They found that budget travelers who planned their trip for four months or longer spent significantly less on accommodations than those who planned for less than a month.
Another reason why it pays to plan before your trip is because it gives you time to create a budget. Having a budget will always give you peace of mind during your trip. It ensures you won’t run out of funds in the middle of your vacation.
When budgeting, see to it that your finances allow you to reach your desired destination. Otherwise, you have two options: (1) postpone your trip first to increase your funds, or (2) go with your current funds and opt for an affordable destination.
Several apps can help you continuously be on the lookout for good deals. For example, you take advantage of price comparison tools and cashback browser extensions to help you automate frugality.
Here are some apps you can try:
- Honey. It’s a free browser extension that helps you search coupon codes on over 30,000 online shops.
- Pricescout. It’s another browser app that compares prices and hunts coupons to help you to find the best deal for any product and shop.
- InvisibleHand. It also assists you with price comparisons and in getting the lowest price on hotels, rental cars, shopping, and flights.
Moreover, once in holiday mode, many of us have the tendency to feel a bit like a walking, talking ATM. We get a little frivolous with our funds, resulting in a post-trip panic.
To prevent these, use money-tracking apps to keep a cautious eye on your expenses and help you stay on track. The most popular ones among budget travelers are Tripcoin, Trail Wallet, and Splitwise.
For every dollar you spend, you can get cash back, hotel points, travel miles, retail perks, and other rewards with a reward credit card. Each card has a unique offering and set of terms for earning and redeeming rewards. Since they run the gamut, the trick is to choose the reward credit card that favors your spending profile.
For example, it doesn’t make sense to opt for an airline miles card if you only fly once a year. Choose a credit card that allows you to accrue rewards you’ll actually benefit from. I have many many credit cards where I pocket the sign on bonuses to help fund my travels.
Here are some credit cards types you want to consider:
- Co-branded. It’s recommended if you’re loyal to a particular hotel chain or airline. It comes with incredible extra rewards for its members, such as loyalty-based travel perks and even no checked baggage fees.
- Transferable Miles or Points. If you’re looking for endless versatility to map out your trip, this credit type suits you the most. It offers points or other perks that you can transfer to a wide array of flight and hotel partners.
Just because you’re on vacation doesn’t mean life will go easy on you and give you a free pass. While this may sound like another expense, investing in insurance coverage can help you save much money in the long run.
For example, travel insurance is a helpful precaution that can save you from the uncertainties you could face on a trip, such as delayed flights or accidents. Otherwise, you could spend a lot of money on things like healthcare, which can be very costly in some countries.
Life insurance is also highly advisable. It’s your financial backing for your loved ones in case something happens to you while traveling. It’s the reality that we can’t avoid. Even worse, no one knows when and how it’ll happen.
That’s why it’s crucial to get insured as early as possible, ideally before going on a trip. If you’re still uninsured, check Assurance online quotes. It’s a site that helps you easily find the ideal life insurance policy that fits your needs.
Always take safety precautions when going on a trip. It’s advised to inform your trusted family members or friends about your planned itinerary and booking details. More importantly, always run a background check on the places you’ll visit and stay. Being careful and well-prepared can prevent unexpected travel costs.
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