For most people, travel entails heading away on an annual holiday or vacation for a week or two. Most of us will save enough throughout the year to book a break to an all inclusive resort in a hot and sunny location. Alternatively, we’ll book the trip and then pay the balance off in monthly instalments in the lead up to the getaway date. But if you’re planning on travelling the world for a longer period of time, or more regularly than once a year, you may have to manage your finances in an altogether different manner. Here’s everything you need to know about managing your finances as a regular traveller!
Clear Debt Before Getting Started
If you have your sights set on travelling the world, but have outstanding debts, it can be tempting to ignore your debt and make minimum payments on what you owe while you travel. But generally speaking, this isn’t the best approach. Not only will it weigh on your mind when you are meant to be enjoying your experience, but it can often prove difficult to generate sufficient money while you’re travelling to survive and meet extra payments for loans and credit cards. So, clear your debts before you go travelling. This may seem difficult, but where there’s a will there’s a way. Some questions to ask yourself and research include:
- Could I benefit from consolidating my debts?
- Should I balance transfer to an interest free account?
- What steps can I take to clear my debt more quickly?
Save Money
It can be tempting to book your trip as soon as you get the money together for your flight out and accommodation. But you really do need to have some savings behind you if you are going to go travelling. This will provide you with a security blanket, ensuring you have enough money to tide yourself over or get yourself home if you are impacted financially while you’re away. Always have at least the money of a flight home available in your bank account.
Find a Remote Position
Working while you’re away can help to generate income during your travels. Not everyone wants to work in a hostel or bar. So, try securing a remote and freelance position before heading away. This will help you to maintain yourself and earn money for treats and extras.
Invest in Insurance
Travel insurance shouldn’t be an optional investment when you go travelling. It needs to be essential. This will protect your belongings and ensure that they can be replaced should you lose anything or should anything be stolen. But this isn’t even the main financial protection that a good insurance policy will provide you with. Insurance will also ensure that any medical costs while you are away are covered. This can prevent you from plummeting into debt if you require any medical attention while you’re away.
These are just a few suggestions that can help you to effectively manage your finances as a regular traveller. Hopefully, they’ll help you out!
*Contributed Post*
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