There has been an explosion of budgeting templates and apps that track expenses to meet the demands of savvy travelers. However, managing one’s finances can be rather complicated if you are traveling, potentially due to lack of access to your usual resources and support system. Even with international borders closed to American travelers due to COVID, personal finance management while traveling is still important.
Here are 5 easy budgeting tips if you are planning summer and fall travel:
The importance of staying connected while traveling cannot be overstated. Because we live in a digital world, it is very easy to have your budgeting and financial tools access remotely and this means that you can budget, save, and manage your finances while on the go. The primary tools would be a reliable smartphone. The smartphone that you choose should be one that is fast so you can complete your tasks quickly; has a long battery life; and offers a good internet connection.
Install relevant apps on the phone
Many modern travelers appear to struggle with managing various aspects of their finances simultaneously while abroad, such as banking, budgeting, investing, trading, and saving. It is important to have apps installed on the device that will help you carry out these necessary tasks.
In May 2020, German fin-tech startup NAGA has announced the all-in-one personal finance app NAGA Pay, which is expected to launch in the fourth quarter of this year. As TechTimes reported in June, the startup has recorded a steep influx of new users throughout 2020. In a recent press release, NAGA CEO Benjamin Bilski commented on the upcoming app, “we have decided to combine all our expertise in NAGA Pay and are currently developing a super app for mobile banking and investing.”
An account on NAGA Pay is expected to come with a European IBAN account that includes a prepaid Mastercard, the ability to trade hundreds of assets in various classes, as well as an option to store digital assets while on the go.
Automate your personal finances as much as possible
To make things easier for yourself, automate as many of these tasks as possible. For example, if you pay certain bills every month, check your banking app to create a recurring payment each month and have the amount automatically deducted from your account. For savings, create a standing order that some amount of money is moved into your savings account each month. You can also look at investment automation by creating sell, and stop orders for any stock or commodity investments you have.
Tere Casas, a Mexican artist who relies on inspiration from nature to create thought-provoking paintings, says that automating her finances has drastically improved her creativity. “While traveling, I regularly find myself in environments where the internet is completely unavailable. Making sure that all financial duties are scheduled and automated before I leave on a trip helps me to keep my mind focused on the art, without getting distracted by having to pay the rent or making a loan payment,” Casas explained. “It may sound silly, but the ideas for some of my best paintings can be attributed to well-automated finances, as I gained them in periods of undivided focus on nature.”
Have a clear picture of your financial duties and spending
Take some time to write out all your current obligations. These include your bills, subscriptions, and so on. Make a list and determine how much you spend on various items and when each bill is due. Also, make sure you create a list of all your various sources of income and how each of them is paid to you.
“When it comes to maintaining your finances in your daily life or on the go traveling as an influencer the two things I live by are budgeting and planning,” says celebrity tanner Isabel Alysa, who frequently travels the world to promote her spray tan brand. “A realistically planned budget holds yourself accountable by helping you to not spend more than you make and sets up a spending limit to not exceed. Prepare to over-budget rather than under-budget so in any circumstance you do have a little bit more flexibility to spend.”
Get a debit or credit card for travel
One financial management aspect that many people struggle with is staying on budget when they are traveling. While traveling, whether on holiday or for work, many people tend to be more impulsive with their spending and this often leads to them going over their resources.
A good way to get around this is to get a debit or credit card specifically for the purpose of travel spending. This creates a clear distinction between your finances and also reinforces that your funds are not infinite while on the go. There are services such as Starling bank that offer cards specifically for this purpose.
Geivon “EG” Cisneros, who runs an influencer marketing company and claims that airports are his second home, says he completely abandoned cash thanks to new “challenger bank” debit cards. “While traveling, handling money through a debit card is more efficient for you, because modern debit card software (like Revolut) can accurately track your spending, create reports, and start the accounting process for business expenses, says Cisneros. “I would much rather hold a couple of cards than stacks of money folded in a wallet causing less of a hassle to carry around.”