Managing Money When Traveling
May 12, 2019
by Michelle Marie Cassar
Let’s face it, when you’re abroad you spend more money than usual. It is an excuse to splurge as you probably will not visit that place again in the future. Eating out is also another difference between home and on holiday/working abroad. These little things will increase the bill to something you might not afford. Taking care of the pennies is crucial in these situations.
Paying for stuff when abroad
Today most payments are done either online or with a credit/debit card. Most establishments accept card payments and personally I believe that is the safest way to pay. Credit/Debit cards allow you to have a lot of money available with less chance of being stolen as well as keeping track of what you are spending. With online banking, you can see what is going out and how much is still available.
I also prefer having some cash on me just in case the cards stop working. My perfect combination would be at least two cards (one which I carry around and another as back up hidden away in the depths of my suitcase) and some cash (also split in two keeping only a small amount on you). That way you have back up just in case the cards stop working or God forbid your bag is stolen.
Different countries have different currencies and so when travelling you have to convert your money. It is a bad idea to convert them at the airport as their rates are higher and you end up losing money on conversion fees. It is better to convert money at your local bank or wait till you are out of the airport and in the city. Personally, I prefer withdrawing some cash through the ATM at the airport. It is not necessarily the best rate but if you withdraw enough for the whole stay, the charges and exchange rates will be better than the airport exchange booths. If you are withdrawing cash, it is better to calculate the amount you think you will need for the whole trip and withdraw once, as service fees might apply for every ATM withdrawal. Converting back to your own currency is also a headache, therefore, I suggest that you spend all of the cash you have. Balance the amount you spend between cash and card transactions so that when the trip is over you are left with little to no cash. That way you will not lose more in conversion fees.
Online banking when abroad
Nowadays, most banks have online banking and mobile apps where you can track your transactions. They are very convenient and help so that you do not overspend. Revolut is one such application. It is an online bank which makes everything easier. Revolut allows you to switch online payments and contactless payments on and off therefore keeping your money safer. If you are travelling with friends, payment to each other is easier as mobile transfers can be done easily through the app itself. Revolut also offers currency conversion and can save your change in order to start building your budget towards your next trip. It is user-friendly and convenient especially when travelling. If you go premium on Revolut, you also get travel insurance as well as no withdrawal fees when you withdraw from ATMs anywhere.
Money makes the world go round and it is important to keep it safe, especially when travelling. It is also important to use it wisely and efficiently so that you can have more to travel more.