How To Plan Your Finances For An International Trip

By Shrutika Vaishnavi | February 17, 2017

How To Plan Your Finances For An International Trip

Finally got the time to make that dream of travelling to your favourite destination come true? Congratulations! While we’re excited for you, we also want to ensure that you’ve planned your finances well enough to make the most of your trip without hurting your pocket.

After all, you certainly don’t want to be saddled with Credit Card dues or hefty Personal Loan repayments once you’re back.

Additional Reading: 5 Tips To Avoid Personal Loan Perils

Since it’s an international trip, you will need to make sure that you are financially well-equipped before heading out. To do that, you need to plan well. There’s more to planning an international trip than just booking hotels and selecting the best tour packages.

It’s all about priorities. While we agree that planning your finances may not be the most interesting thing to do – especially when planning your dream vacation – you must remember it really is all about the money at the end of the day.

Better planning not only ensures that you’re well covered in case of an emergency, but it also lets you stretch your funds a bit so that you get to enjoy the best of everything on your trip.

Additional Reading: How To Make Your Money Last While Travelling

According to us, and most other financial experts (including our moms), money takes the front seat when it comes to almost everything. After all, you’re planning to visit a foreign land with no one to help you out in case of an emergency.

But, don’t worry! We’ve got your back. Here’s how you can plan your finances for an international trip:

  • Check your account balance

First things first! It’s better to start safe. Before making fancy vacation plans, don’t forget to check your bank account balance. It’ll help you plan your trip better since you’ll get a better idea of what you can afford and what can be avoided.

Additional Reading: Top 6 Savings Bank Accounts In India

  • Find out the upper limit of your ATM transactions

Just like you have a daily upper limit on your ATM transactions here, you’re bound to have some abroad as well. Stop procrastinating and contact your bank to find out the upper limit of your ATM transactions. This information will certainly come in handy on your travels.

Additional Reading: 10 Hacks To Become A Money-Wise Traveller

  • Find out if carrying your current Credit Card makes sense

It’s possible that your current Credit Card may not be the best available option for you to carry abroad. Why? Well, if you opt for a Travel Credit Card, you could avail free reward points, which could mean free hotel bookings, concessions on airfare and other bonuses.

Additional Reading: Everything You Need To Know About Airline Credit Cards

  • Find out the currency conversion fees

This is one of the most important things that you need to find out. Since currency conversion rates vary from place to place it should be right up there on your list of priorities.

If you happen to neglect this bit then be prepared for a jolt while making ATM transactions or using your Credit Cards abroad. Once you know the conversion rates you can compare them between banks to get the best deal. Be smart, yo!

Additional Reading: How Plastic Money Is Making Vacations More Fun

  • Find out everything about VAT refund

You need to find out all about the VAT refund process of your dream destination. For instance, in the UK, you’re charged VAT on quite a few goods and services. But, the concept of tax-free shopping allows you to get a VAT refund on things (not services) you buy there.

This information could definitely sort out your shopping. You’ll know when and where to stop (very important to know your limits)

Additional Reading: Get A VAT Refund When You Travel – Europe

  • Keep important phone numbers handy

Anything could go wrong at any time. Just because you’re on a vacation doesn’t mean that it’s all going to be smooth sailing. Don’t take things too lightly.

Since you’re visiting a foreign land, with no acquaintances around, you need to be slightly more responsible so that you can face any emergency. If you’re travelling with family, then you need to be extra responsible.

There’s every chance you could lose your wallet or Credit/Debit Cards. That’s why you must have all the phone numbers of your bank handy so that you can immediately report a loss and block your cards.

Just to be on the safe side, make a note of these numbers in your diary as well. Just in case luck fails you and you lose your phone as well. Staying one step ahead of such eventualities will help you save the day.

Additional Reading: Travel Insurance Plans For Globetrotters

  • When in a foreign land, stick to your Debit Card to withdraw cash.

If you use your Credit Card too frequently to make cash withdrawals, you’ll end up paying a bomb in advance fees. Instead, you could use that money on tons of other things. We’re sure your relatives and friends must’ve given you a long list of things/souvenirs to buy.

Withdrawing money from major ATMs might work in your favour as they don’t usually charge a usage fee, but it’s always advisable to run a check before you swipe your card.

Additional Reading: 12 Clever Ways Indians Save On Travel

We hope this list helps you financially plan your trip better. After all, it’s about having the time of your life at your dream destination, isn’t it? So, have a great trip!

One last thing, though. Now that you’re here, why not check out our exclusive range of Travel Credit Cards? You remember what we told you about their benefits and rewards, don’t you? You’re just one click away from hitting the jackpot.

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Category: Travel Travel Insurance
Shrutika Vaishnavi

About Shrutika Vaishnavi

Shrutika believes that everyone is a superhero, with a stack of some extraordinary superpowers. She is driven by the simplicity of the most complicated things around her, and her superpower is- using the right words at the right time.

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