(Newswire.net — April 6, 2018) — It’s a common credo that, “travel is the only thing you buy that makes you richer.” That’s because traveling offers you experiences that grow you understanding of the world and of yourself.
Still, if you are making travel plans, it’s smart to make sure you aren’t spending more money that you should be. Although vacations are an escape from normal life, it’s only temporary. You’re going to have to get back to the normal day-to-day at a certain point. After all, you don’t want to return to work penniless.
With the right tips, you’ll be on the right track to spending the perfect amount for your trip. Here’s a helpful guide to managing your money while on vacation.
Budget Beforehand
The first step for planning a money-smart vacation is to anticipate your needs before you get there. Figure out exactly where it is you’re going and what you’ll need to spend money on. For example, there are the essentials:
1. Transportation, Food, and Shelter
A good rule of thumb is to make a list of expected major expenses you plan to face. Transportation, food, and shelter are likely going to be your biggest money-suckers. If you’re starting off with the right information on how to save, you’re doing it right. Consider items and strategies like coupons, discounts, packed lunches, etc. that will help you budget your expected expenses and kick start your trip in a money-smart way.
Then there are other categories, like:
2. Gear
Depending on your destination, you’re going to need the correct attire to make the best of your trip. Make sure you have appropriate clothing and accessories. This means purchasing them. Take into account exactly it is that you’ll need. For instance, if you’re going on a trip where you’ll be doing a lot of boating, make sure you and your family get swimsuits and sunscreen!
3. Emergencies
Emergencies are a totally different story. There will always be some kind of emergency during your trip. These can vary depending on your situation. You might need a hundred dollars for an unexpected travel mishap like losing your luggage in the airport. Or you might need thousands of dollar for car repair on your road trip across Route 66. Either way, keep in mind that you’ll need a designated amount of money for any issues like these. It’s up to you to decide how much risk you’re willing to take.
4. Extras
Often, the “extras” category is what makes your vacation special. Things like souvenirs for your friends and family, spas, dining at the best restaurant, etc. can make your vacation worthwhile. They exemplify that true escape from reality and give you the break you deserve. Assess the likelihood that you’ll want to indulge in some extras of these sort and include them in your planned budget.
Dealing with Foreign Currency
When traveling to another country, it’s smart to always round up with foreign currency. Depending on the country, money you’re exchanging may round up, down, or half up. For example, half up would round a dollar amount of 3.4 to 3 and a 3.5 to 4. The down and up models are useful in some currencies. For instance, in Japan, it’s often the case that currency is rounded down to the nearest yen. It’s just better to use a system that rounds up so you’re not losing any amount in the exchange.
Use Cash
Another useful tip for how to manage money while on vacation is to be smart about using cash. If you want to make sure you’re spending wisely, try to use a credit card as little as possible. After all, if you can’t pay off your credit card after using it while traveling, you’re adding an additional interest to your already consuming vacation. Not to mention credit cards are rarely used in some countries, like Japan.
Sticking with cash is just the better way to go. It’s real money you have at that moment. The only downside is that you have to be careful with cash. If you lose it, it’s gone forever—unlike some credit cards. Also: don’t be flashy with the cash either—you risk being a target for thieves and that’s just a major loss for vacation.
You’ve put hard time in to work and now it’s time to play. It’s sometimes easy to feel stressed even on vacation if you’re not using your money wisely. With these useful tips, though, you’ll manage your finances perfectly to ensure you have the best get away ever. Now go take that trip!