By Craig Joslin, the founder of The Australian Expat Investor
When travelling abroad, one of your key considerations will likely be costs and budgets. The smart traveler knows the best way to limit cash risks, make the most of money-saving opportunities, and most importantly how to make the right decisions on spending. Many “old hands” will offer country-specific advice, but there are some simple tips to save money when travelling abroad.
You can divide your “battle-plan” into three sections; long range planning, before you go, and hitting the ground running. In this article we’ll look at the key tips to making your travel a success.
LONG RANGE PLANNING
If you have enough time to organise things well in advance, you’ll save money. It is often the long range planning that will avail you of the biggest savings.
1. Purchasing Your Tickets
There are certain times of the year when it is cheaper to travel, and there are figures available to give you a guide on exactly how far in advance you should be purchasing. Both Cheapair and CNtraveler provide great information. As a rough range, anywhere between 21 days and 50 days in advance is optimal, but don’t book from Friday through Sunday. Studies suggest that if you follow this, you’re likely to save up to 30% on average.
2. Sorting Out Accommodation
The days of staying in a run-down hotel near the airport just to save money are long gone. The sheer range of options available to the consummate traveler is now huge, and if you have the time you can compare options such as hotel rooms, AirBnB, or short-term apartment rentals. Set a realistic accommodation budget and start looking on sites like booking.com or Airbnb.com for a great comparative search engine.
Figure out your length of stay, estimated budget and most importantly, how far you’re willing to travel on a daily basis. Add the data set to the search function and see how many good options are available.
3. Travel Light
Depending on your choice of carrier and destination, you’re likely to have between 20 and 40 kg of luggage allowance. Try to prioritise your luggage into “must haves” and “nice to haves”. Consider what you will need when you land and what things you can either do without entirely or can do without for a few weeks.
Should you be planning on taking heavier items such as a golf bag, surfboard, or a musical instrument, it can not only be cumbersome, but you are likely to be charged per kilo over your luggage allowance. Evaluate sending them separately as unaccompanied air freight instead, and you might save a considerable amount of money.
BEFORE YOU GO
Just before you set off, there are plenty of small tasks you can be doing to not only achieve a smoother transition, but also to save money.
4. Travel Insurance
Although the cost of travel insurance can be high, it is guaranteed to give you peace of mind and work out cheaper than running into any out-of-pocket expenses. Insurance will in many cases also entitle you to a higher standard of care if you are not going to a less developed country.
One of the key considerations with insurance is to “get only what you need”. Many companies that offer travel insurance begin consultations with a global package which will include the United States. Because of the high medical costs in the US, if you also include America on your insurance, you’ll pay a much higher premium. Be specific about where you are going and what you’re likely to be doing, this will get you a better quote. And don’t be afraid to shop around, either.
5. How Do You Intend To Spend?
Undoubtedly, the easiest option for spending money overseas is to use your credit or debit card; you can do big purchases on the card, or get cash from a range of ATMs. But just because it is the easiest way, this doesn’t mean it’s the cheapest. Bank charges (in particular foreign currency transaction fees) can be extremely high. There are several alternatives worth considering:
Travel Cards: They work almost exactly like credit/debit cards but are set-up for international use. They have the added advantage of not ruining your life if it becomes lost or stolen. Check out the reviews at choice.com.au.
Get Currency in advance: When most people land, the first thing they do is go to the airport ATM or Money Exchange desk. The rates are based on the idea of a captive crowd that needs local currency before they can catch a taxi or a bus, so the exchange rate is not as good as you could otherwise receive. Having local cash already in your hand will save time, effort and money. Try buying your currency in advance. Places like Travelex.com or Travel Money Oz can get you better rates as they are seeking out customers as opposed to relying on desperate need. For more information on advance currency buying, check out this article.
HITTING THE GROUND RUNNING
If you’ve ever gotten off a plane and seen other people “floating around” the airport, it’s because they don’t have a plan. And those that don’t have a plan are likely to end up spending a lot of money for no good reason. If you know exactly what you’re going to do and where you’re heading, you can ensure that the cheapest/best options are available to you. Here’re a couple of tips to be the “best-prepared on arrival”.
6. Get a Local SIM
Most phones today come with International capabilities; which is great, but expensive. Ask around the airport for a place to buy a local SIM card. It doesn’t have to be your main/permanent SIM, but it will cut costs on calls and especially internet usage whilst you are travelling abroad.
If you don’t buy a local SIM card and just want to rely on free local wifi networks, at least don’t forget to switch off mobile data on your smart phone. You don’t want to return home to get the nasty surprise of the high cost of international data downloads whilst you have been on holiday.
7. Immediate Transport
There will be several counters in the arrival hall offering various modes of transport either into the city or to your hotel. There will also be a lot of people offering taxi services. Don’t feel pressured into choosing one straight away. “Informal taxis” or “private cars” can end up costing you a lot more (and may be a lot less safe) than what you need to spend (depending on the location)
Wherever you’re going and whatever you intend to do when you get there, being prepared is never a bad idea. Proper research will allow you to set a realistic budget and stick to your spending goals. The more cash you save on unnecessary expenditure, the more money you’ll have for fun.
By Craig Joslin, the founder of The Australian Expat Investor