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Rediff.com  » Getahead » Ask Mayank: How To Manage Money While Abroad

Ask Mayank: How To Manage Money While Abroad

By MAYANK GOYAL
August 18, 2022 09:24 IST
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Do you have queries about managing money while travelling abroad?

Mayank Goyal, founder and CEO, moneyHOP (external link), will answer queries related to how to best manage your money while travelling internationally.

Please mail your questions to getahead@rediff.co.in with the subject line, 'Travel Advice', along with your name, and Mayank will offer his views.

Illustration: Dominic Xavier/Rediff.com

Whether it is your first solo trip, a family vacation, or an escapade with friends, your budget is one of the most important things to consider when planning your travel.

Consider how many dollars or pounds you need to make your experience a lifetime memory. Carrying loads of cash with you also doesn't make sense. It is extremely unsafe too.

So what is the best way of managing your money during international travel?

Here are a few money management tips for you to keep in mind when travelling to a different country.

 

1. Take some foreign cash before leaving

You will need cash in local currency as soon as you land at the airport for expenses like cab fare, meals, etc. Having cash beforehand saves you the trouble of looking for an ATM.

Also, in this way, you'll be able to avoid exchanging money in the airport where exchange rates are not as favourable as the ones offered by local banks.

The limit to carry cash in international travel for Indians is $3,000.

2. Set up automatic payments

When travelling you may be having bills to pay back home, which may include utilities, electricity, EMIs, credit card, etc. It's better to automate these payments as it will help you pay bills on time and fulfill your financial obligations even if you are thousands of miles away.

Though you can also pay them online during your trip, you won't always get a good or safe Internet connection and you may forget their due dates.

3. Choose the right card

You must already be having an international credit card, check whether they charge a foreign currency fee. If yes, find a card that doesn't. In such a case, find a Debit + Forex card that you can use to spend and send money anywhere in the world seamlessly.

To add a cherry on top, with such cards exchange rates are cheaper than a bank. With such cards, there will be no additional charges that you will have to pay except for international ATM charges which are also lower than other international debit cards.

4. Create a reference list of credit cards and important phone numbers

Be prepared for the worst.

Make a list of all credit cards that you are carrying for your trip, including the number and the international customer service phone number. This will be extremely helpful if your card is stolen or you lose it somewhere in case you want to block it.

5. Book air tickets wisely

The process of booking any flights international or domestic is tiresome. With prices fluctuating on different sites it can be extremely overwhelming too. Here are some tips for you when you are booking an international flight:

  • Search in incognito mode
  • Be flexible with travel dates
  • Go for local airlines
  • Try to do payments in currency cheaper than the Indian rupee
  • Set fare alerts

International airlines come with a lot of terms and conditions. Some airlines offer free luggage facilities but then their ticket costs may be high; others have cheap air tickets but have extra luggage costs. With wisely planned air travel you can make sure that you don't spend much on air travel.

6. Take travel insurance

Travel insurance is important when you are travelling abroad.

Accidents can happen anywhere, like injuries, lost wallet/luggage, or a natural disaster. Sometimes, you may have to halt your trip in between to take care of something extremely urgent back home. Travel insurance is extremely important in such situations.

Way forward

Use these tips to plan your trip so that you can avoid all the unexpected and high expenses when you are travelling internationally.

Happy Travels!

moneyHOP is a full-stack cross-border banking solution that caters to the global aspirations of Indian millennials.

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MAYANK GOYAL