Key financial planning tips for travellers

Be it local or global, is there anyone in this world who doesn’t like to travelling and exploring different countries? Yet to find one! How many times have we all thought only if we had a little more money, you could have enjoyed your trip more. In simple words, money tends to distract us from enjoying our holidays to the hilt, especially when we do not plan and save for our holiday in advance.

 

 

 

 

In this article, let’s examine the 5 key financial planning tips that can help you nail an awesome foreign or local holiday for you and your family. Here we go:

 

Tip 1: Off-peak is the best and easiest time to travel

Why do you have to always follow the herd? Does the herd pay for your trip? It’s your hard-earned money. We comfortably ignore the fact that off-peak travel costs are at least 30-40% lesser than peak travel costs for obvious reasons. Moreover, heavy crowds, costly hotels, costly airfares, etc. don’t help either. Thus, pick a time to go to Barbados, which others don’t pick, to get the most out of your holiday.

 

Tip 2: Draw a clear cost sheet for your holiday

As boring as it may sound, have a clear idea of your total costs for your holiday makes a big difference in terms of planning your holiday much more efficiently. Have a clear and as detailed a break up of your holiday costs. For instance, if you’re planning a 7-day trip to Barbados, first list down all the cost items such as return air tickets, visa charges, and hotel stay. Next, identify around 2-3 localities and local attractions that you plan to visit.  Be practical and don’t plan 10-15 local site visits. This makes it crucial for planning the local commuting cost such as taxi fare along with cruise costs, snorkelling charges, etc. In simple terms, get into as much details as possible. Therefore, at the end of this exercise, you will have a clear ball parked figure in mind with individual break up, which allows you in rejigging items by striking off those that you feel are unwanted. Now you have clear amount you will require to have a rollicking holiday in the Caribbean.

 

Tip 3: Create a travel savings account

Using tip 1, you are ready with the total trip cost to Barbados. Next, you are best advised to start setting money aside and the best way to do it is by having a separate bank savings account for it with a well-defined time horizon enough for you to get the funds together. Decide whether you need 3 months, 4 months, or 6 months to get the funds as per your cost estimate. Remember, this way, you can arrange your money as well as get some interest on your savings. Now, who doesn’t like a bit extra.

 

Tip 4: Get a forex travel debit card from your bank

Avoid carrying high cash volumes in foreign currency. It’s best to play safe. Talk to your banker and ask them for a forex debit card, which will be an international visa or master card for you. You can put in amounts into the card based on your cost estimates for the trip. There could be withdrawal charges and certain restrictions. Please check with your bankers in that regard. A travel card makes expending in foreign currency easier and safer. Most ATMs allow you to withdraw cash in foreign currency as well. Check with your banker for charges and fees.

 

Tip 5: Consider getting travel insurance

Foreign travels are firstly very costly. Thus, just imagine the medical costs in case something goes wrong during your trip. You can’t plan for medical contingencies, agreed! However, you can plan to cover yourself and your family from any such contingencies through a comprehensive travel insurance cover. This will help you largely in ensuring your funds don’t get eroded faster and save you precious money.

Just use these 5 tips and plan your next holiday. Exotic, retro, historic, or beach destination, how would that matter if you have you holiday properly planned and covered.

 

If you require more help in terms of financial planning for your holidays or exotic vacations, write us at investmentz@acm.co.in

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