Traveling, whether for leisure or business, is an exhilarating adventure. However, without proper financial planning, it can quickly turn into a stressful experience. As a CPA and an avid traveller, I’ve discovered that applying financial literacy fundamentals and smart financial strategies can turn any trip into a memorable and budget-friendly journey.
In this article, I’ll share 10 essential travel tips from a CPA’s perspective to help you make the most of your finances and maximize your travel experience. Are you dreaming of a weekend getaway or planning an extended adventure? These tips will help you stay on budget and travel with peace of mind.
Let’s dive into how you can make financially savvy choices with the following travel tips:
1. Set a travel budget
Start by determining your total budget and break it down into different categories like flights, accommodation, transportation, meals, activities, and more. Sticking to this budget will help you avoid overspending and keep your finances in check. Depending on where you are traveling, do some research to determine what the average costs will be and build your budget based on what you find. If the destination is more expensive, it may take longer to save up for the trip. Planning ahead will go a long way!
2. Track your expenses
Use budgeting apps or spreadsheets to monitor your spending as you plan and go on your trip. This will help you stay within your budget and identify areas where you might be overspending. Adjust your budget as needed to ensure you stay on track. For example, if dining at a Michelin star restaurant is more important to you than visiting an attraction, consider shifting budget from visiting attractions to eating out.
3. Plan for currency exchange
If you are traveling to a country with a different currency, research the best options to avoid high fees. Consider bringing some local currency or credit cards that have no foreign transaction fees to save money. Monitor the currency conversion rate a few months in advance so you know what to expect. If the rates become more favourable, it may be a great time to make some bookings.
4. Prepay where possible
Prepaying for accommodations, tours, and transport when rates are favorable can help save some costs. Booking early often leads to better deals and discounts, making your trip more affordable.
5. Opt for refundable bookings
Where possible, choose fully refundable bookings and monitor pricing up until your travel date. You might find a better deal that you can rebook at no charge, saving you money in the process.
6. Take advantage of discounts
Look for early booking discounts, group rates, or membership offers that can significantly lower your travel costs on accommodations, attractions, and car rentals. Check different travel sites and see where you can find the best rates before booking. Sometimes you might find that different vendors offer special perks like free parking or free breakfast if you book at the right time.
7. Understand travel insurance
Travel insurance may cover trip cancellations, health emergencies, and lost baggage. Many credit cards offer excellent travel insurance coverage, so it’s important to know what coverage you already have and what you need. If your employer provides extended health benefits, they may include some travel insurance coverage for you and your family. It’s always a good idea to double check what coverage you currently have before exploring and possibly paying for additional coverage if it’s not needed.
8. Plan for emergencies
It’s always better to be prepared for the unexpected. Set aside an emergency fund for unexpected expenses such as medical emergencies, flight cancellations, or lost belongings. This fund can be in cash or a credit card that is ready for use when traveling.
9. Travel during off-peak seasons
Planning your trip during the off-peak season or shoulder season can help you take advantage of lower prices on flights, hotels, and activities. Plus, avoiding crowds may elevate your experience.
10. Research transportation options
Instead of relying solely on taxis or ridesharing services, consider using public transportation. It’s often more affordable and sometimes can be more convenient than trying to navigate through traffic in highly dense areas.
Traveling doesn’t have to break the bank. By applying these smart financial strategies, you can make the most of your travel journey and maximize your dollar. From setting a solid budget to taking advantage of early booking discounts, there are plenty of ways to save money and travel on a budget.
Safe travels and happy saving!
Nelson Soh, CPA, CA is a TEDx speaker, best-selling author of Life Literacy and the 100 Day Money Mindset Journal, financial literacy expert, and volunteer with CPABC’s Financial Literacy Program. Nelson is also the co-founder of FSQ Consulting, a business consulting firm, and one of CPA Financial Literacy Program volunteers. You can follow Nelson on LinkedIn, TikTok, or Instagram to learn more about financial and life literacy.
