We all love to escape the humdrum of day-to-day life. Planning finances may not be the most exciting part of your trip, but once you get sorted, you’ll be free to enjoy.
We asked Apollo Founder, an expert from Sunburnt Atlas, about the best ways to manage money overseas. He says that one of the biggest mistakes he sees travelers make is treating money management as one big problem, instead of several smaller ones.
“International travel works much more smoothly when every payment method has a job,” he says.
Before you travel
Even if you’re just going to one place, preparing your foreign cash in advance can help you avoid excessive fees. You’ll find places like airports or stations often have unfavourable rates.
Being diligent when it comes to conversions helps your money go further. Keep an eye on the market to know the best time to exchange. Order some local currency online before you travel; this helps you exit the airport smoothly, without having to negotiate currency conversion with luggage in tow. This can be done through Travelex, currency exchange booths, or even the post office in some countries.
Don’t use traveler’s checks
Once a staple of overseas travel, traveler’s checks have now become outdated. With limited acceptance and high fees to get your cash, they are more problematic than they are useful. Instead, check out how much it will cost you to use your credit or debit cards abroad. You can do all this in advance, online.
“Before I leave, I notify my banks of every country I’ll be visiting, including any layovers—because using a card in multiple countries within a short period can trigger fraud protection if the bank isn’t expecting it,” Apollo says.
Always have a backup
If possible, it’s best not to have all your money in the same place at the same time. Most travellers like to split their payment methods between debit cards, credit cards and cash. This allows for a backup should you encounter difficulty with one of your payment methods or if something gets lost or stolen.
“Once I’m traveling, I separate my spending by purpose. I use one payment method for travel apps, another for in-person purchases, and carry a reasonable amount of local cash for smaller businesses. Keeping those categories separate makes it much easier to review statements and quickly spot anything that doesn’t belong,” said Apollo.
You should vary the cards you carry with you; for example, Mastercard and Visa are widely accepted, but you may encounter problems with American Express if you travel to Europe or Asia.
“Finally, never travel with every payment method in your wallet. Keep backup cards secured at your accommodation, carry only the cash you expect to use that day, and make sure a trusted family member knows how to help if your wallet is lost or stolen,” said Appollo.
These are some basic tips for managing your money when you travel. Prior preparation, scam awareness, and making astute decisions when exchanging cash can give you peace of mind to enjoy your holiday, whatever it is you’ll be getting up to.
