Travel Tips for Your Wallet
As the winter season comes to a close, we anticipate the coming of spring and all its joy. Springtime brings with it wedding season and the planning of spring and summer break vacations. My husband and I are in the season of life where we ride the “wedding circuit” each spring and summer. The past two years we have traveled all over to attend weddings, from Houston to Dallas and Mexico City to San Diego. Although we cherish all of the memories made in this season of life, traveling, especially internationally, can be expensive. As a now-seasoned traveler, I have developed some top travel tips to ensure a smooth, enjoyable trip while also being wise with money.
- Create a budget and do your research. The first thing I do when planning a trip is put together a budget. Flexibility is a necessity when traveling, but an idea of what you are willing and able to spend is essential in the planning process. Research your destination to discover off-season travel times, which may help decrease the overall expense. I find it helpful to jot down an estimate of potential expenses as I research, including flights, meals, excursions, and transportation. Awareness of the total cost can help you scale back where needed and avoid overspending during the trip. For bigger trips on your bucket list, set aside money for a “travel goal” in savings each month.
- Purchase flights wisely. Many travel assistance websites have the ability to monitor flight prices to identify the best time to buy. If you fly frequently, consider signing up for a free rewards account with your favorite airline to accumulate points. Be wary of booking directly with third-party sites such as Expedia; certain airlines do not offer flexibility for missed flights or rescheduling when the flight is booked indirectly.
- Book excursions ahead of time. This will allow you to compare costs across multiple different experience groups, choosing the best value for your budget. Paying ahead of time can offer better rates, reduce the hassle, and spread trip costs out over time.
- Take advantage of discounts. During a recent trip, we discovered that our hotel offered a percentage discount when booking a rental car through a specific company. This can be a great way to cut costs for a service you were going to secure regardless. Contact your hotel’s concierge service to see if there are any discounts they offer for local activities or restaurants.
- Review insurance coverage. Check with your health insurance plan to see what international coverage options may be available, as benefits often differ internationally. Travel policies are available to cover everything from unexpected delays, medical emergencies, and cancellations. Review refundable options with your hotel, excursions, and airline tickets. Evaluate your risks and ask yourself – am I willing to self-insure, or is insurance the best choice?
- Choose your credit card wisely. Credit cards can have many benefits abroad but be aware of hidden expenses. For my personal international travel, I prefer using a credit card over a debit card for the extra fraud protection it offers. Find a card that has zero foreign transaction fees and offers attractive travel benefits such as points or miles. Keep in mind what kind of card it will be (Visa, Mastercard, etc.) and choose one that is widely accepted. A credit card’s online app could be helpful to track transactions and contact the bank as needed while abroad.
- Bring along cash. It is a good idea to have some local currency on hand when traveling abroad. Plan ahead by requesting a currency exchange at your bank before the trip, or visit a major bank upon your arrival. Avoid exchanging at the airport or standalone ATMs abroad, as they tend to have poor exchange rates and higher fees.
With proper saving and financial preparation, you can experience your trip with peace of mind. Work with a CERTIFIED FINANCIAL PLANNERTM professional to implement a financial plan and work to achieve your goals.
Published in the Victoria Advocate
Sarah D. Nix is a CFP® professional and Associate Advisor with Keller Wealth Advisors.
