3 Ways You Can Optimize Your Money Management On The Road

June 16, 2018

We love exploring.  In 2017, tourism contributed over 10 percent of Philippines GDP and the year 2018 has gotten off to an even better start, with an 15.97 percent tourist increase from last January. Worldwide, that number crossed 1.24 billion in 2016. The adventures and new experiences that traveling brings with it is often sought after and at the top of many individual’s lists. However, constant traveling can mean a busy, full life. With this, it is often easy to lose track of spending and find yourself in an awkward position. Perhaps, you find your card being declined because you have gone over the spending limit or face unexpected expenses because you missed your flight. However, there are some simple ways you can avoid these situations and  keep on top of your finances even when trekking across the globe.

It All Begins With Awareness

One of the best things you can do to help to smartly manage your money on the road is to first be aware of your finances. This means turning to the age old budgeting trick so you know how much you are spending. These days, there are a magnitude of online and mobile budgeting apps, perfect to check in 60 seconds on a train or as you wait for your plane to depart. Often, we tend to utilize budgeting when saving and planning our travel adventures. However, the process is just as important when actually on your adventure.

If you are more preferential to lists, a handy tip is to take with you a small notebook to be used as your spending journal; documenting your transactions as your go along. This is handy when traveling with cash. For bank accounts and card transactions, many banks now offer text alerts as a part of your package to alert you when you are edging towards your spending limit or in an overdraft. As  always, be sure to allow a built in miscellaneous amount in your budget for unexpected expenses.

Organization Pays

Without organization, you can end up confused and losing track of both your spending and incomes. If you intend on traveling for a long period or are a frequent traveler, one of the best things you can do is to utilize autopay and direct debits for your regular bills each month. A step that comes after budgeting (and once you have ensured you can comfortably cover all standing bills), adding an automatic payment function set for a specific date removes the chances of you forgetting to make payments or being confused by differing time zones. If you are using a spending tracker on your mobile or even manually, you can then sync these preset payments with your budget, allowing you to have a true image of your disposable income.

Speaking of your income, it is always a good idea to separate your travel allowance from the rest of your income. This can easily be done by having a dedicated bank account for your travels and transferring the predetermined amount before the start of your trip or at suitable intervals. It is a fantastic way to avoid overspending and keep your finances on track.

Consider The Pros And Cons Of Your Funding

Finally, think of and plan how you will pay for expenses on your trip. A great suggestion is to acquire a debit or credit card. They are much easier to travel with and with their worldwide acceptance, you will be able to access cash and make payments from thousands of locations worldwide. Another benefit of using debit or credit cards is that many offer cashback with regular use, earning you money as you spend. With debit cards you can preset a withdrawal and usage limit, guaranteeing yourself of not running into debt.

However, credit cards come attached with interest rates and should be considered more carefully. Great for when you need to pay for something and do not have the cash, they do eventually have to be repaid (since it is a line of credit) and if not repaid in full, they continue to accrue interest. Most credit cards carry an average interest rate of 16.9 percent and above. Credit card companies in the Philippines have been noted recently for their higher interest rates, some hitting exceeding 25 percent. However, with some research there are some great affordable rates for first timers and additional benefits such as annual fee waivers and promotional zero interest periods.

Smart financial planning and money management is achievable anywhere you go. It does not always have to entail charts and complicated planning. With a few simple preparatory steps, you can still enjoy the adrenaline and beauty that exploring the world has to offer, while knowing that your money is accounted for.

Connect with @filipinaxplorer on Instagram


© Filipina Explorer. Design by FCD.