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10 Travel Expenses You Should Not Forget To Budget For

10 Travel Expenses You Should Not Forget To Budget For

When you are travelling this summer, sticker shock certainly sets in regardless of the mode of transportation. From gas prices currently in jeopardy of increasing to higher airline fees, you’ll feel the pinch some where. However, what doesn’t help out is that these upfront fees don’t take into consideration the hidden and unexpected costs that come with your trip, domestic or international. Today, we will take a look at 10 travel expenses that you should remember to take into account when planning your travel budget for the summer travel season. We will also factor in some ways you can save on these unexpected costs.

1. Departure Taxes

Departure fees are easy for many individuals to forget including in their travel budget. For many countries, these are fees that are included and unchangeable in your airport ticket. However, for other countries, for example Argentina and Costa Rica, in some cases you’ll have to pay the departure fees the airport. While small for a majority of countries, hovering around $20 – $50, other countries charge a lot more. To stay up-to-date on departure fees from the United States, checkout this website by the US Department of State. Simply search the country and click “Entry, Exit, & Visa Requirements”.

2. Card Fees and Currency Exchange

When traveling abroad, you are likely to encounter foreign transaction fees from your credit card company. You may even find that such a fee is even imposed on debit cards as well. Before you depart, it is always important for you to call your credit card company to allow them to be informed that you will be out of the country.

Credit and debit cards don’t have GPS chips and they are unable to know if you croissant purchase in Paris is your summer vacation or credit card theft. When you call, ask what the foreign transaction fees are.

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Secondly, even when paying cash, ensure that you have a handy currency exchange app on your phone to ensure that you are truly paying a good price for all goods purchased abroad. XE Currency is a great currency conversion app that is updated daily whenever you connect to the Internet.

3. Meals During Travel

Eating is an obvious aspect of your travel budget. However, one addition to your budget that you might not always consider is eating while arriving and departing from your destination. These are costs that add up, especially if you encounter delays or layovers. If you are a family of four, you’ll find that this is a fee you can’t simply hope will organize itself. In an airport, food costs are astronomical.

To alleviate this cost, bring food from home to nosh on during your arrival, and make a short trip to the grocery store in your location you are visiting before heading back home. If you encounter a significant delay, get in touch with your airline for a meal voucher, they are almost always offered when asked in such situations. They want to keep your business, in the end.

4. Cellular Provider Fees

From keeping in contact with your family back home to sharing your vacation adventures on social media, voice and data costs are an aspect of your budget to consider when abroad this summer. Without intervention, your GSM (AT&T and T-Mobile) smartphone will simply connect to the local international provider in the area and you’ll find yourself charged huge fees.

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Before leaving, inform your cellular provider of your travel plans, ask for possible international plan discounts, and if such discounts aren’t available, look into getting an international pay-as-you-go phone while there. WIFI is a great alternative as well, making use of Skype for calling back home. Some Internet cafes and hotels charge to use their WIFI, but this fee is exceedingly cheaper than paying cellular fees.

5. Emergency Expenses

It can be easy to think that the most stressful part of your trip is the flight there and back. However, if you encounter an emergency, you’ll find that the flight was only a breeze. Being on vacation, you find yourself doing more strenuous activities that you don’t normally do every day (from hiking to scuba diving, etc).

This presents itself with unexpected risks of injury. If you find yourself with a major injury, your insurance could help out. However, other emergencies and injuries may require digging into your own pocket for associated fees (sprains, cuts, bruises, etc). Due to how this is an expense that not everyone encounters, look into setting aside your credit card for these expenses, instead of setting aside a specific amount of cash.

6. Visa Costs

Along with departure fees, you’ll possibly find yourself encountering visa fees that depend on the duration of your time in a certain country. Ensure that you have these fees set aside and paid for if you are having an extended trip. In addition, if you find that you have to go to a local embassy to handle these tasks, make sure you factor transportation costs for getting to and from there. A friend of mine currently visiting China had to make three embassy visits before receiving her visa. Sadly, we can’t put a price tag on the stress that task brings on!

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7. Travel Insurance

Regardless of if you are backpacking through Europe or becoming a beach bum this summer, travel insurance is a must for individuals going abroad. You’ll find that purchasing travel insurance through providers like World Nomads offers you not only medical protection, but also assistance for trip cancellations, assistance, interruptions, and delays. In most cases, travel insurance cost under $100 and can protect you with thousands of dollars in coverage.

8. Spontaneous Adventures

If this is your first time abroad, you’ll want to make sure that you have the time of your life. If you are in a country during a national holiday or celebration, you’ll find that activities and adventures appear out of no-where and can be once in a lifetime for you to celebrate in. Make sure to have a form of payment planned for these spontaneous adventures, either in cash with your budget or with your card. You’ll thank yourself in the end.

9. Flight and Baggage Fees

A common occurrence for travellers is that they encounter an amazing deal on a plane ticket, only to find that they are hit with baggage fees. Always ensure that you look at your airlines website before packing, not departure, to see the hidden baggage fees assessed by your airline. If you do this before packing, you can pack accordingly. Having a price tag attached to your overpacking will cause you to pack smartly, not impulsively.

Other flight fees that you might unexpectedly encounter are WIFI costs and food/beverage purchases. Contact your airline before departure to see if WIFI is available on-board and for how much. If it’s a short haul (< 2.5 hour flight), WIFI might not be a necessary cost.

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10. Lodging Fees

Finally, when travelling anywhere, fees associated with lodging can be unexpected for many travellers. Ensure that you have a clear outline of how much you have to pay for lodging. Internet fees, room service costs, open bar, and room service tips are costs that travelers find that they usually ignore when travelling. Make sure you include these possible costs in your budget to prevent sticker shock at the end of your vacation.

By including these fees in your travel budget, you’ll find that you are better prepared for any fees that come along the way. Not only can you combat them, you can save money along the way. Let us know in the comments below how you are saving money this travel season.

Featured photo credit: http://hawaiidads.com/wp-content/uploads/2013/12/family-travel-1.jpg via Hawaii Dads

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

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