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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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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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Featured photo credit: Pexels via pexels.com

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