Budgeting for travel can be difficult and overwhelming at times, but if you do your research and read the small print, you can save a ton of money and take advantage of an international bank account.
One of the first things to look at is ATM fees and international banking fees associated with a particular account. Some banks will pay you back for any third party banking fees abroad and others will cover the international currency conversion fees as well.
One of the most difficult things about budgeting money for travel, especially if you are backpacking across multiple countries, is adjusting to different currencies and finding the right banks to give you the best exchange rates.
For example, when I first arrive in a new city, I take the morning to visit multiple banks and third-party exchange houses to figure out who gives the best rate. From there I take out money in my banks’ currency from an ATM (at a trusted bank), and then I go exchange the money into local currency.
I would recommend taking this extra step because it will save you money from any international currency exchange fees if you were to take out local money.
Another major recommendation is to look into Offshore savings accounts to save you from international fees while working and traveling abroad.
While living in Argentina, I had many friends who kept their money in offshore savings in Uruguay, Switzerland and the UK, which gave them the flexibility to move money between different accounts and avoid certain fees and local regulations.
The best is to choose an Offshore savings account who can give you a choice of currencies in a secure place with 24/7 assistance.
Once you have your bank accounts established and country currencies dissected, the next most important thing when it comes to budgeting for travel around the world is making money and the ability to deposit cash easily while working and traveling abroad.
Travelers checks are a thing of the past and can be very difficult to cash in many countries. While living in Medellin, Colombia, I had a number of travelers checks that I couldn’t deposit or cash unless I went to one of three particular banks in the city.
Everything is done online now and most countries are allowing credit and debit transactions, however, there are still places like street stands in Ecuador and public markets in Peru that strictly accept cash.
My advice would be to ditch the travelers checks for a Paypal account to give and receive money internationally and sink it up to your international bank.
This has helped me develop a travel blog and gives me the chance to work and travel abroad for the past four years.
People don’t realize that you don’t have to be a millionaire to travel the world, you just have to get your finances in order and make a plan.
I recently needed to transfer money from the US to Irl. From my experience, XE.com was one of the cheapest options for sure, but the process of setting up an account is quite laborious and Currency Fair currently doesn’t allow transfers from the US to Irl. I ran out of time and patience and used my bank in the end, no doubt losing quite a bit in the process, but at least I’ll be better prepared the next time!!
These are some really good tips! Thanks so much for sharing. It definitely makes sense to get everything on board and set up before stepping foot out the country! Really great advice, look forward to reading more traveling tips!
I think all travelers need a these kind of tips. it sure is very helpful.
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