5 Money Mistakes to Avoid When Traveling

Creating a fun, affordable, and memorable vacation experience is no easy feat. But it’s possible if you have planned everything in advance - be it your flight tickets, hotel, or local commute. However, if you have missed out on these things or end up taking a single wrong decision in the planning process, you are likely to dig a deep hole in your pocket. This scenario could arise from something as simple as not booking the right accommodation or the return ticket. There are also other things you may not have considered that can easily hamper your budget if you haven’t planned in advance. And this is not a comfortable situation, particularly for those who are already spending a lot of money on their travel. So, if you are planning a trip anytime soon, make sure you avoid these common money mistakes when going on vacation.

Don’t make these money mistakes while traveling

1.Not buying travel insurance

Sure, taking that trip is exciting and essential but getting the trip insured is equally important as it gives a sense of security to us. Buying travel insurance is definitely one of the things that’s often on our minds but most typically at the bottom of our to-do list. But the truth remains that buying travel insurance is important. Generally, the average cost of travel insurance is between 4 to 12 percent of the total cost of your trip, which is ideally the best investment as opposed to taking the risk. Say, for example, if the total cost of your trip is Rs. 1 lakh, then your travel insurance could cost you somewhere between Rs. 4,000 to Rs. 12,000. From misplacing your passport, getting robbed of your belongings to losing your luggage, to accidents, being insured is vital so that you can enjoy a peaceful trip. Do your research about the best travel insurance plans and providers or consult a travel and finance expert for better guidance.

2. Not knowing the cost of living at your destination

Whether you are traveling to a different city or a different country altogether, it’s important to research about the economy of your destination in order to set a budget. A lot of travelers do not pay attention to this aspect of traveling and end up exceeding their budget, not by choice but circumstance. Be it the cost of local transport to food expenses or healthcare to accommodation and taxes, knowing the approximate amount of money required to enjoy and have a comfortable vacation will help you arrange funds and have a budget plan in place. Lack of awareness in this regard will only push you to spend beyond your means.

3. Not sticking to a budget

Not sticking to a pre-decided budget is another major mistake people make while traveling. We let ourselves get swept in the moment and go beyond budget. This is especially true in case of shopping and food, both of which are notorious money guzzlers that we end up spending mindlessly on. And most typically, restaurants and cafes at popular travel destinations are way more expensive than at other locations. Thus, it’s ideal to set a budget depending on who you are traveling with, where you are traveling, and how much you can afford.

4. Not figuring out local transportation options

You could practically spend more on transportation than anything else if you don’t do your research ahead of time. In places like Goa, for example, rather than spending exorbitantly on cabs, renting out a car or bike is convenient and cheaper. Similarly, in a place like Mumbai with the highest traffic congestion, where local trains are the fastest and most economical, taking a cab or driving yourself might not prove to be the best options. So, prior to reaching the destination, identify transportation options and save yourself some extra money, time, and energy.

5. Not taking benefit of apps and rewards

In today’s times, relying on a travel agent to plan a trip is not the only option around. The emergence of travel sites and apps has proven to be a game-changer, especially in terms of researching costs and finding exclusive deals. Whether you want to book a plane ticket or an Airbnb for your stay, you can avail of the best deals through such platforms; namely, Goibibo, MakeMyTrip, Yatra, and Trip Advisor. Additionally, if you have a rewards credit card, you can also leverage accumulated points towards bookings or access other offers like a free night’s stay, airport lounge facilities, or free checked bags.

Takeaway

Holidays can get expensive if you don’t take precautionary measures. Do your homework so you can save yourself from spending excessively on tipping, shopping, and commuting. If you are among those who make impromptu plans without giving a thought to how they can drain your wallet, keep in mind these common money mistakes when you travel next. Ultimately, remember that the more aware and organized you are of your personal finances and the way in which you can manage your budget, the fewer mistakes you will commit and the better travel experiences you will have.
For money-related queries, consult a finance expert before your vacation. Happy travels!