If you have a holiday booked, are planning to go off travelling, or perhaps moving away to study abroad knowing the best ways to keep track of your finances while away may not have crossed your mind in the midst of all the excitement. Either way it is just as important to manage your finances at home as well as while you are away. No matter how much you have saved up in advance, there will still be important matters to consider when it comes to your personal finances especially when the unexpected can happen and if emergencies occur.
The Right Bank
If you are just going away on holiday to another country for a few weeks then you won’t need to think about switching banks. But if you are travelling or living abroad for a year or longer then you may need to think about opening a bank account in the country you will be travelling too. Before leaving consider that your current bank might not be the most cost effective option while travelling internationally.
Most banks will now charge all different sorts of foreign transaction fees for debit card uses in another country. Although the usual rate will be rather low between 1 and 3 per cent but if you will be using your card more often than not the rates and the charges will soon add up. Another matter to take in to consideration is international ATM withdrawals, as some banks can charge a hefty fee for each withdrawal as well as the machine itself may charge an individual rate.
Bring A Spare
When in another country you can often get swept away in the excitement but the important thing is to keep your money and all-important documents as safe as possible. If your card is lost or your account becomes frozen by the bank you could find yourself without money especially if you don’t have any cash on you, which is not the position you want to be in while in at home let alone a different country.
Any easy way to combat this is by bringing a credit card for emergencies or even investing in prepaid cards for paying bills even if you have or haven’t lost money. Prepaid cards are ideal when travelling abroad as you or even a relative of yours can load money onto the card, which will make payments and bills easy to pay just like debit and credit cards, yet they are more convenient and safer.
Know The Exchange Rate
Before you enter a new country the best way to keep track of your finances is to know the exchange rate. That way you will know how much cash to withdraw to last you the holiday. If you are travelling for an extended amount of time you will also know how much to withdraw to last you for a few days while you get your bearings.
Budget
While you are away the best thing you can do to manage your finances abroad is to create a budget, or at least have one in mind. There will be plenty of exciting things to do, see and buy while you are abroad but remember to pace yourself and not get carried away with spending too much money when you first arrive. Before you leave or the first day devise a budget and aim to stick to it as closely as you can to ensure you have enough money to see you through. Even if you have any money left over from your trip, at the airport or when you get home you can easily exchange the money and put it towards your next trip.