Whether you’re travelling long term like me, or just going away for a week in the sun or a weekend city break, it can be hard to save for that all-important trip and then once you’re there, to stick to the budget you have available. Here are just a few of the tips I employed before I set off and still use to this day to try and help keep my finances on track.
Put Your Holiday Funds In a Separate Bank Account
Set up a second bank account with your current bank and each pay day, pay a portion of your wages into this separate account A secondary account is usually quick and easy to set up as your bank will already have all of your details and this ensures that you aren’t tempted to spend your hard-earned holiday money before the holiday has even begun!
Choose The Right Card
For either your primary or secondary (holiday fund) account, make sure that using your ATM or credit card abroad won’t land you a terrible amount of fees by choosing the best current account for traveling. There are many great bank accounts out there which offer low or zero fees for foreign withdrawals and this can often work out cheaper and easier than converting currency before you go. Also, it means that you only have to withdraw or spend what you need, meaning that you aren’t left with a lot of currency on your return home which you will have to pay a commission to change back.
Set a Daily Budget
Before you go, research the average cost of excursions, food, drink and transport in your destination and try and create a daily budget in line with the total amount you have to spend. It may not always be easy to stick to it, especially in more expensive countries, but it should help to remove the possibility of a negative bank balance when you return. Setting a budget is also a great way of seeing just how cheaply you can live each day, particularly for backpackers or those travelling longer term.
Sign Up For Online Banking
Online banking is one of the most useful tools you can have at your disposal when abroad. Not only does it allow you to check your balance and statements, but also to transfer money between accounts and pay bills. If your card is lost or stolen, you can quickly and easily identify any fraudulent transactions that are made, meaning that the process is quicker and easier than having to phone your local bank at home to sort it out.
Have the Right Apps – Currency converter / banking app / local voucher deals
A smartphone can be an extremely useful tool when travelling abroad, and not just for making phone calls. There are so many apps, many of which are free, which can be useful money- and time-saving devices, including currency converters, mobile banking, voucher deals for cafes and activities, train timetables and flight/hotel comparison website apps. All of these can help save you money and ensure that you are never unprepared for wherever your travels may take you.
Photo credit: money
This post was brought to you in partnership with Halifax Bank, but written by me.
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