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Even though I am a firm believer that you can travel on almost any budget, at times, travel really can be expensive. This is particularly true when something unexpected happens, for example, you may have to replace your camera. Your money can also disappear just as easily if you spend more than you have on hotels, restaurants and activities. It’s for these reasons that it is so important that you know how to manage your finances while travelling to avoid running out of money. Here are some tips that I use to manage my finances when I’m on the road.
Planning
It all begins before you even go anywhere. The most important step of all is to plan and research your trip so that you know exactly how much money you will need. Research the destination thoroughly first and work out how much things like food and accommodation cost. What sort of hotel do you want to stay in? Are you happy to stay in a backpackers hostel or do you want luxury? What type of activities do you want to do when you are there and how much do they cost? Research flights and make sure to include the price in your budget.
Once you know how much things cost you can work out a daily budget and figure out if you can save enough money in the time that you have.
It’s also important to have a good savings account so that you can earn interest to add a little more to your savings.
Always overbudget
This is a very important tip in my mind. If you only save the amount of money that you need for your daily budget, you won’t have anything to get you out of trouble if something unexpected happens. I always make sure that I have a good amount of money put aside on top of my daily budget so that I have the peace of mind that if something happens, I will be fine.
Carry a backup
When you are travelling you should never rely on only one way to access your money. Although I usually use my debit card to withdraw money, I always make sure that I have cash, my debit card as well as a credit card for backup. This way if something happens to your debit card, you can use your credit card until you can sort it out. It’s important to always carry some cash on you as well as not all places accept cards.
Keep track of your spendings
When you’re having a great time on your holiday, it’s really easy to lose track of how much you are spending. This is why it is important to make sure that you are sticking to your daily budget. I like to write down what I spend each day when I am on a trip so that I know that I’m not overspending. If I spend too much on one day, I make sure that I spend less the next day to even it out. If I’m keeping under my budget then I know that I can splurge a little bit more on another day.
By using these tips you can make sure that you never run out of money and can instead focus on really enjoying your holiday.
