Be money smart while travelling

Let’s talk about on how to to be smart with your money when travelling.

How many of you realised after a trip to have spent a huge amount in transaction fees, ATM fees, foreign currency fees? I bet at some point in your life all of you have. I have. There is no shame in that, we just need to keep going and hopefully, next time will be better! … or you can read this post and never do the same mistake again.

So here are my 5 top tips on how to spend, use and manage your money wisely whilst travelling and avoid any hiccups during your holiday.

Always pay in local currency.

This is a good thing to remember whenever you go. However, it is particularly true when you travel to a country with a weaker currency than yours.  

Sometimes, in such countries, the exchange rate applied by the vendors between their local currency and stronger ones (i.e euros, dollars, or British pounds) is a much more favourable rate than the market one. If you don’t want to lose out on the exchange rate, simply pay in local currency.

Bring your credit card with you and leave your debit card at home.

This is more of a security tip on money, especially if you are travelling to a country where the crime rate is higher.

If there is a risk of getting robbed or to simply lose your wallet, you don’t really want to lose your debit card. Debit cards are linked to your current account and whoever gets a hold of them can access your lifetime savings. Not ideal.

A good alternative is to bring your credit card, which is usually insured, or a prepaid card, where there is only so much money that can be stolen.

NEVER EXCHANGE MONEY AT THE AIRPORT.

For those of you that travel more often, this may sound obvious. However, if you’re a fledging traveller this might be something you didn’t think about. Exchange fees at airports or stations are always higher. Sometimes, it’s even better to withdraw money from an ATM rather than exchange money at the airport. Just remember to check what your bank fees are (see tip number 5) before deciding what’s most convenient for you.

And remember, before exchanging any cash, ALWAYS check the current market rates for comparison.

Use multicurrency prepaid cards.

This is probably my best advice. Multicurrency cards are the best when it comes to travel.

There are multiple card providers who offer this service, you can check them here.

On this note, I feel comfortable to recommend Transferwise. This is what I use when I travel, and I always been happy with it. What is great about them is that they have very low and transparent fees, but most importantly, there is zero mark-up on the exchange rate. This is because they convert money at the true mid-market exchange rate.

(Please note that I am not sponsoring them, this is my true and honest recommendation 😊 )

Always check your bank/credit card issuer fees before travelling

Of course, you can feel more comfortable just using your usual credit card. In that case, I recommend you always check your bank or credit card issuer fees. By doing that, you can have a better understanding of what will cost you less, e.g. withdrawing money or directly paying by card.

What about you? Do you have any tips on how to be money smart when travelling?

Let me know in the comments section below!

As usual, if you have any questions or suggestions, do not hesitate to contact me.