Tips For Managing Your Finances While Traveling

May 31, 2018 | By More
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Tips to Automate Your Finances While You Travel

When you are a travel enthusiast, you don’t want to ruin a great vacation with thoughts about money. In fact, it would be inappropriate to travel when your finances are not sorted out. The rise of technology has brought several utilities that can be very helpful to travelers as far as managing their money is concerned.

Manage Finance While Traveling

Whether you practice budgeting on a daily basis, there is still a serious need to have all your bills sorted out while you are away from home on a vacation. Basically, dealing with domestic finances when you are far away in another continent can be daunting.

Automate your savings

Before taking a vacation, you definitely need some funds to pay for the expenses. To get started, create an account that is dedicated to travel fund. If you don’t separate the savings, it is highly likely that you will spend the money on other things.

While it can be tempting, it helps if the account isn’t associated with a debit card until you are ready to take the vacation. To make things easier, you can set up automatic payments towards this account. Whether it’s from a side job or paycheck, ensure there is some money going into this account consistently.

To make the most out of the accounts, you can decide to settle on an interest-bearing account. Since these accounts will continue accumulating interests as long as you are depositing some money, the fund will continue growing. Nevertheless, this method is only great for people who keep the funds for a long time.

Dealing with expenses

These days, internet coverage is almost everywhere but this doesn’t mean that it’s always accessible. As such, making timely payments can be tricky especially if you are visiting a destination with a weak connection.

To ensure you are comfortable during the vacation, it’s important to automate your bills and avoid unnecessary panic and worries. When you choose to work with this option, make sure your account is sufficiently loaded for all the payments.

If you have most of the money held in more than one account, you might want to transfer sufficient amounts into an account that will handle the payments. Basically, it can be pretty frustrating to move funds when you are miles away from home.

On the other hand, if you’ve got some recurrent bills to settle make sure they are linked to your bank account. For instance, instead of making manual payments to your credit card, you can just have it tap into your checking account.

Most importantly, if you have some outstanding loans with low credit up to $5,000 it can be wise to set up automatic payments. The idea here is to avoid unnecessary penalties for skipped payments. Whether it’s a student loan or an installment loan you are doing with, making automated payments will save you lots of headaches when you are away. Besides, you’ll only review the statements to determine the progress.

Getting a travel card

If you can keep your spending habits in check, you might want to consider a travel card. Besides being one of the best ways to make purchases and payments when compared to carrying cash or using a debit card, it can be a fallback strategy when on a vacation.

travel card

In the event where the card becomes compromised through theft or loss, the service provider will move promptly to disable access to the account. This is much safer than losing every penny in your checking account which is a possibility when using a debit card. In addition, there are several travel cards that come with attractive perks like travel insurance, automobile rental insurance, and purchase protections.

Dealing with your personal loans

Living in volatile economic times means that people will have outstanding debts. In fact, most Americans are walking around with different forms of debt.

If you are currently paying a loan, you can opt to pay the interests only or defer the entire payments. However, this works best for loans that don’t have high interest rates. Definitely, no two people have identical debt scenarios and such, it’s imperative that every person make a decision that matches their situation.

The first thing to do would be contacting your creditor and get more details about the applicable solutions. Based on your financial situation, you should make a decision that won’t hurt your profile in the long run.

When on a long vacation, designate some tasks

Vacations can take several months. In such events, you can have someone close to you take care of any issue that might crop up when you are away from home. While there are tons of apps to help you accomplish tasks remotely, having someone to take action on your behalf can save the day if something extraordinary happens.

Basically, it’s important that you choose an individual who is quite trustworthy and with a high propensity to act on short notice. This means that if you ask them to access one of your accounts and make a funds transfer, they will accomplish the task on time. Besides, you don’t want to deal with someone with integrity issues who can end up squandering your funds.

Final words

If you’ve ever wanted to enjoy a vacation, money is one of the things that you will need. While it’s important to save for the vacation, it is better to automate most of your finance tasks to ensure you will enjoy the vacation to the maximum.

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About The Author:  Christine Rowland is a young blogger who likes to write about some current trends and cool stuff in various industries.  She is also focused on traveling around the world frequently and eager to share her experiences with new or experienced travelers.
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Image Source:  Pixabay.com

 

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Category: Featured, Good To Know

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