Posted on: 20-12-2015 in Financial Planning
Have you ever given any thought to how to manage your money when travelling from one country to another? Or how to access money cheaply and safely if something were to go wrong?
The team at Holborn Assets have put together a brief guide to managing money when you are on your next trip:
1. Share Your Travel Plans – It’s best to let your credit card issuer or the bank know when and where you will be travelling. This way, the sudden activity on your account overseas won’t get your account frozen or trigger the bank’s fraud alert system.
2. Use ATMs – This is one of the most convenient ways to get cash in the local currency. They are usually available in major cities and airports for easy access. However, you will be subject to currency conversion fees for each cash withdrawal. Also, if you are travelling to rural areas, ATMs may be limited and will need to stock up on some hard cash to avoid running out.
3. Pay with Credit – Credit cards are the most widely accepted cards around the world. Holborn Assets recommends taking 2 credit cards on your trip, a backup is essential for emergency use and as a precautionary measure. Credit cards are converted at interbank exchange rates and there are a few cards that don’t charge any foreign transaction fees.
4. Carry Cash – It is always a good idea to get some foreign currency before you leave home. This way, you have cash at hand to handle your immediate expenses such as tips and taxis, food and drinks etc.
5. Avoid Money Changers – Always be aware of the rate expected from currency exchangers to avoid getting ripped off. Most of the time, you will not get a great conversion rate from your home bank and you may have to pay commission or fees.
6. Setup Internet Banking – Make sure online banking is an option in your chosen bank. This is definitely helpful when you are on the road, especially when you are out and about travelling the world. In addition, it helps to keep track of your spending and money transfers.
7. Wire Transfers – If you find yourself in a dire state without cash and are having difficulty in accessing your credit cards, someone at home can wire money to you – and you will have it within few minutes. MoneyGram and Western Union are two renowned companies for money transfers.
Get the most of your money when travelling abroad by doing a little homework first. The most important step is to know your options for spending money so you will not be stranded overseas at any cost. This could be a swipe and sign to stash of cash, electronic withdrawals and local touts offering the best rates for currency conversions.
Happy travelling & safe spending!