Your travel budget — either you control it, or it controls you. Check out these easy tips to keep yours in check.
Just say no to Foreign Exchange (ForeX) fees and commissions
Have a dedicated travel account that will reimburse your ATM and foreign exchange fees. Credit Unions in the United States are excellent at this. If you are unsure if your banking institutions charge these types of fees when abroad, take the time to contact the bank’s customer service department or read up on terms and conditions (Ts & Cs).
Profit from Leisure
Savvy travelers use one or more credit cards that pay them back and do not charge foreign exchange fees. I use the Chase Saphire and Chase IHG Rewards cards12. Instead of cash, use these cards for their intended points multipliers. Note that each card has an annual fee. Read more here about why I place such a high-value premium on these cards.
Note: the only way to win at the credit card game is to pay your balance off every month. Credit companies hate it when you do that and even use malicious words against people who practice it. Be the villain. Be the person they hate for keeping money in your pocket.
Pack light
I’d be lying if I told you that my family and I are always good at this, especially as we travel with our infant daughter. Extra weight will put a leak into any long-term travel budget with multiple flights booked. It also slows the group down. I’ll talk more about this when and if we up our game.
Train Passes
Are you thinking of using a multi-country or single-country train pass? The good news is that they are still of decent value, but you want to discover the devils that live in the details before you add a train pass to your virtual cart. Get to know those devils here.
Short Term Car Leases
If you plan to use a car long-term in the EU, consider leasing instead of renting. The upside is that you own the car as a non-resident and pay zero taxes. The downside is limited car options and expensive gas, especially for long hauls. This option is mainly available and favorable in the EU. I use this tax-free service. After an 87-day lease, I have zero complaints.
Medical
Check if your medical insurance covers international travel.
- Providers may require upfront payment for medical expenses abroad.
- A no-ForeX-fee credit card will give you peace of mind and budget padding.
- In developing countries, credit cards may not be accepted as payment.
Budget Preparedness
Budget ahead of time and come up with an average spending plan. You’ll bust that budget some days and maybe fly under the radar on others. Whatever your existing budget is, add 20-30%. Surprises await.
Rethink Airline Loyalty
If you are used to being a dedicated client of one airline to build points, do your homework. Google Flights and Skyscanner are two of the best tools for competitive intelligence on airfare. A pro tip is to use a VPN or browse in incognito mode. This video shows you how.
Buy adapters ahead of time. Rethink the need for voltage converters.
Travel converters are typically unnecessary for laptops, tablets, and phones. Check the voltage of your device—if it shows 100 – 240v, you’re good. Small converters3 may be wise for electric toothbrushes or other appliances. Large converters are heavy, which might hit your budget when flying. Save time by buying adapters4 ahead of time. Click here to check your destination’s voltage.
Share your thoughts! What do you do to keep your budget in check while traveling? What financial products do people outside the United States use to avoid costly ForeX fees? Please comment below.
- I receive a minor points commission for new members signed up through these links. ↩︎
- These cards may not be available outside of the United States. ↩︎
- Also known as “transformers.” ↩︎
- Are you confused by the terms adapter and converters? I won’t tell anyone. Click here.
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