Any time you travel abroad, you likely experience a sense of joy and excitement that you can’t find at home, all because of the opportunity to explore new cultures, taste exotic cuisines, and meet new people who encourage you to leave your personal comfort zone. However, there’s no doubt that these adventures often come with significant financial costs.
Most people typically spend weeks, months, or even years saving diligently enough to afford to go to their dream destinations. Depending on how long their trip will be, the destination itself, and the activities one plans to do there, some travelers have explored particular financial solutions like a dedicated savings account for managing their travel money. Maya Savings is one example of a digital bank account product that an increasing number of travelers based in the Philippines have come to trust. A good few have even tapped into solutions like Maya’s Time Deposit Plus to grow their excess money and earn higher interest off of it, particularly for lengthy and expensive trips planned well ahead of time.
Given the effort and sacrifice involved in saving for these trips, it’s only practical for you to want to make the most out of every peso when traveling abroad. Fortunately, with ample preparation and wise financial management practices, it’s possible to make an already great travel experience abroad even better.
To that end, here are some practical tips to help you maximize your money while exploring various places abroad:
1) Prepare a Travel Budget
The first thing you should do once you’ve decided to travel abroad is to create a travel budget. Your travel budget will help you prepare for the basic expenses of the trip, manage your money while abroad, and avoid the constantly looming temptation of overspending.
When preparing your travel budget, start by researching the average costs for accommodation, food, transportation, and activities in your destination. Check out travel blogs, forums, and vlogs to gain valuable insights into what you can expect to spend.
Once you have an idea of the costs, divide your budget into categories such as accommodation, meals, transportation, activities, souvenirs, and emergency funds. This will help you allocate your money more efficiently and ensure that you have a clear plan for your spending.
As mentioned above, you can consider opening a dedicated savings account for your travels abroad. You can also take advantage of solutions like Maya’s Personal Goals to budget and organize your money for your travel plans. The guaranteed 4% interest p.a. will also allow you to increase your savings and have more money available for your trip.
After you get an estimate of your travel expenses, set spending limits for each category and try to stick to these limits throughout your trip. Tracking your spending is also essential here; use budgeting apps or a simple spreadsheet to monitor your expenses. It’s good to be aware of your spending patterns so that you can stay within your budget and reduce both financial stress during the trip and buyer’s regret when you come home.
2) Use a Travel-Friendly Debit Card
Once you’re abroad, you can make the most out of your money by using a travel-friendly debit card. Explore a debit card that’s designed for international use, as these often promise lower fees and provide better exchange rates. You may want to consider a card from a digital bank over a conventional one, as traditional bank cards often come with high withdrawal and transaction fees when used abroad.
Debit cards from digital banks in the Philippines like Maya are easy to manage through mobile apps, and they also come with security features that a traveler would need while they’re in another country. These cards can also be used to withdraw cash, make payments, and even transfer money while abroad, which will provide you with a convenient and cost-effective solution for managing your travel finances. What’s more, your Maya Card will be free when you open a Maya Savings account.
3) Withdraw Cash at Your Destination Withdrawing cash from ATMs upon arrival is also a wise financial choice for making the most out of your money when abroad. It’s usually more cost-effective than exchanging large amounts of cash beforehand. This approach will also be useful for small purchases and places that don't accept cards.
Just make sure to look for ATMs affiliated with your bank to minimize withdrawal fees. Your foresight will allow you to access local currency at a better rate and reduces your risks from carrying large amounts of cash on your person. You should also plan to withdraw larger sums at a less frequent rate so that you can avoid multiple transaction fees.
As an added precaution, always use ATMs in secure locations, preferably inside banks or well-populated areas, and be mindful of your surroundings whenever handling cash.
4) Opt for Credit Cards with Travel Perks
In addition to a debit card, it would also be good to bring along a travel-friendly credit card. These cards typically come with no foreign transaction fees attached to them, which will allow you to make purchases without additional costs.
Many also offer rewards and perks such as travel insurance, cashbacks, access to the airport lounge, and points that can be redeemed for future travel. These additional benefits are sure to enhance your travel experience abroad. For example, the travel insurance that comes with your card can cover unexpected expenses like medical emergencies or trip cancellations, giving you full peace of mind while traveling.
5) Pay in the Local Currency
Lastly, when paying with your card abroad, always choose to pay in the local currency rather than your home currency. Paying in your home currency often comes with a dynamic currency conversion fee, which can be more expensive in the long run. Paying in the local currency, however, means that you can save a significant amount of money over the course of your trip.
Ensure that the payment terminal or your receipt shows the local currency to avoid unnecessary charges. In addition, always double-check the exchange rate offered by the merchant and compare it with the current rate so that you know that you’re getting a fair deal.
Your next travel adventure abroad doesn't have to be financially stressful. It’s possible to enjoy the trip to the fullest and remain confident about your financial health with ample preparation and knowledge about how to make the most out of your money. These tips should guarantee you a better financial experience while you’re in another country and perhaps whet your appetite for your next opportunity to jet-set across the globe.
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