The COVID-19 pandemic greatly influenced the tourism industry globally. Restrictions were implemented to contain the virus, which meant travelling was crippled for a while. Yet, businesses still thrived through the online space. Working without taking a vacation once in a while results in less job satisfaction and lower returns. While travelling, it is vital that you assess your financial position and take the necessary steps to increase or at least maintain it.

The best way to understand the importance of financial planning before a trip will require you to imagine yourself travelling. You are at the underwater restaurant in the Maldives, and the waiter runs your bill. You graciously offer them your credit card, only to be informed that they do not accept cards at the establishment. Or they don’t accept the particular card you are using.

What’s worse is that you did not carry any cash. You didn’t think it was necessary; cards work all the time back home. You don’t know anyone at the restaurant, and they don’t accept exchanges. Instead of all this hassle, it would have been better if you had done some research before you boarded the flight.

So here are five financially-proven strategies to ensure you’re not embarrassed at the fancy restaurant you ate at, all because of one croissant and a coffee.

Plan

The first thing you need to do even before booking that flight is to sit down and plan your travel. Have everything in order, from your current finances to the activities you hope to participate in and their average prices.

Prepare a comprehensive budget detailing all the expenses you anticipate to have. Do not be shy about budgeting; over-budgeting is better than under-budgeting. Cut down on unnecessary expenditure, and save the funds for emergencies while on the trip.

Have an assortment of payment options

Variety is always security so that when one item fails, there is a stable failsafe. Instead of relying only on debit or credit cards while travelling, also carry cash. Have it exchanged beforehand to avoid confusion and inconvenience?

The benefit of having different payment options is to cater for the institutions that do not accept one mode of payment. Also, considering a scenario where all your cash is stolen or lost, having a credit card will be a much-needed backup.

Using card payments may be risky in a foreign country. Assuming that the service offered to you is done so by criminals whom you cannot know, using card payments will leave a trail that could lead back to you and land you in trouble. Using cash instead will help you stay in the clear.

While it is not safe to carry lots of cash while travelling, it is better to make cash payments than card payments in foreign countries. Make sure you exchange your currency often enough to cover all your expenses.

Alert your bank

Before you go on your next vacation, inform your bank. Most banks have a security system that detects your financial transactions, and when they are suspicious, the bank freezes your accounts. A snorkelling bill from Hawaii could be a security threat to your bank.

Just as your email reports suspicious activity to you when it is accessed from a different device, so does your credit or debit card. Indeed, cash does not leave a trail, but it would be unwise to travel with cash only.

Unfreezing bank accounts may take a while to solve. Dealing with such an issue when you should be on vacation is an unfathomable pain.

You might also need to notify your credit or debit card company before you travel overseas. Having them in the know helps avoid some of these confusing issues. Letting them know will also act as insurance; they will be more on the lookout for suspicious activity than if you hadn’t reported it to them.

Check exchange rates

You will definitely need cash when touring. Some services, such as those provided instantly or by SMEs, may require cash payments and shun card payments. For instance, tipping the waiter who served you well will require cash, and buying ice cream from the street vendor may also require cash. When travelling in Europe, it is prudent to carry Euros to help pay for some services such as taxi rides.

It is best to research the best times to exchange money and take advantage of it.

Also, checking exchange rates before you travel helps you prepare a budget. Understanding how much you will get for what you have and comparing it with the average prices of products and services you will purchase will ensure that you have a seamless trip.

Avoid exchanging cash in airports. They charge more commission, and their rates are generally higher. Use bank ATMs instead. If you find your bank’s ATM in the foreign country that you are visiting, you are sorted. It acts like your bank’s financial embassy.

Know your rates. Some credit card companies charge 2% to 4% extra when purchasing products and services outside the US. Preempting this by exchanging cash will save you money to attend a musical concert on the final vacation day.

Download digital apps

Explore your phone’s app store before travelling or even during your vacation. There are hundreds, if not thousands, of applications on the internet that will help you with your travelling, such as:

• Online calculators
• Currency convertors
• Attraction and tourist sites
• Restaurant apps
• Food delivery apps
• Planning apps
• Maps and location apps (GPS trackers)
• Online banking apps

Using these apps will save you time and money that you could channel into the vacation.

When touring a new place, you should be wary of locals who might want to take advantage. That’s why thoroughly researching the area and culture beforehand is pertinent. Make reasonable financial decisions while still at home, and commit to sticking by them.

You do not have to explore new attraction sites and relax yet embark on an adventure of the destination’s financial industry, or lack thereof. Ease yourself these burdens by implementing these strategies.