Vacations, especially overseas, are one of the pleasures of life that everyone saves their time and money for. But, not everyone is lucky enough to travel abroad. Before jetting- off overseas, travelers often spend hours planning and searching for the best flight and hotel deals. But, many jet-setters neglect the financial planning involved with the trip. Thus, it’s important to create a ‘financial to-do list’ before your foreign trip, to ensure your finances are safe while you’re away from home.
Here are the 7 financial to-dos that everyone must go through before boarding your plane to save your precious time and money.
- Inform Your Bank Or Financial Institution About Your Foreign Trip
This is the most important thing to do before setting- off abroad. Remember to inform your bank, financial institution or Credit Card Company where you’re visiting and the duration of your stay in the foreign country. This is because banks and Credit Card Companies keep a check on your account for suspicious transactions. If you have always been using your card within 100 miles of your home in Mumbai and suddenly, there are 10 charges from USA and Canada, the banks will get suspicious and will freeze your account.
Therefore, a few minutes before leaving, call your banks and credit card companies and inform them about your trip. This way, you will have access to your funds all over the world.
- Set up Online Banking Account
While traveling abroad, online banking is a convenient option that will provide you with security over your funds. An online banking account helps you to check your balance and transfer and deposit funds easily. Also, you can easily check your balance and see if there is any fraud or unauthorized charges on your account. You can set up automatic payments that can help you pay your bills on time while you’re thousands of miles away from home. But, avoid using public Wi-Fi for online banking as hackers can get your account information and passwords.
- Have Multiple Payment Methods
Before heading to another country, it’s recommended to carry multiple payment methods such as cash, credit and debit cards. This is very important because if you lose your card or your card gets blocked, you’ll need another option to make your payments.
- Make Sure Your Credit Card Is Suitable For Use In Abroad
Sign up for credit cards which don’t charge any foreign transaction fees or currency conversion fees. This fee ranges from 1-3% of whatever you spend. Why pay extra charges if you can easily find these cards with some internet search. Also, make sure that the cards you’re carrying are accepted in the countries you intend to visit. It is also advisable to carry few dollars in the local currency in small denominations.
- Be Aware Of The Exchange Rates
When traveling abroad, you should educate yourself about the basic currency conversion rates as well as about the foreign currency and exchange rates of that particular country. You can also use various apps to find the latest exchange rates that can also help you plan your travel budget.
- Use no- fee ATM Cards
Nobody likes running around with a lot of cash. But there are certain situations, where cash becomes a necessity. In such circumstances, ATMs are the most convenient options to get a supply of local currency. Instead of getting your currency exchanged at airports that charge extra fees, use your ATM card which will always give you the official exchange rate. Some ATMs charge an extra fee, therefore, it is recommended to sign up for a no-fee ATM card that will give you complete freedom to withdraw money without having to worry about the extra charges.
- Keep A Copy Of Your Credit Cards And Debit Cards In Your Suitcase/ Hotel Room
If you’re taking your credit and debit cards on your foreign trip, make sure that you keep a copy of them at a safe place. This is really essential because if you lose your wallet or purse you can quickly inform your banks and financial institutions and ask them to block those cards.
It is wise to keep an extra ATM/ Credit card away from rest as this way you will always have some cash in your wallet.