Today’s guest post comes to us from Matt at Sovereign.com. He has some good information about the little things that can completely wreck a trip.
In the humdrum of real life, people differ in their money management skills just as much as they differ in whether they’re a neat freak or not. However, the immensity of traveling and the desire to make one’s hard-earned cash stretch all the way round the world can turn you into a hard-nosed accountant overnight. Be warned, this new fiscal prowess is not infallible, so it’s always best to be wary of a few pot holes in the road ahead.
The Tear Inducers
- Bank and Card Payments
In your home country, a bank card transaction is usually processed that day, or at least that week. Across the border, this usually well-oiled machine can break down. Expect to occasionally be hit weeks down the line by card payments you previously made and forgot about, or hadn’t factored into your up-to-date budget status.
- Breakages
Breakages can affect anything. The sudden snap of your backpack strap is painful and unavoidable, but always thinking what could go wrong beforehand can limit the damage you sustain throughout the months. If you have a spare pair of glasses you hate, or a tacky MP3 player you’ve forgotten about, you’ll be surprised how appealing they are half way round the world when your budget can’t afford a replacement. Light-packing is convenient, but double-packing is smart.
- Unexpected Medical Expenses
Insurance may cover you, but perhaps you didn’t realize you had to pay upfront yourself and recuperate it when you get home. Insurance policies can be incredibly complex, so if you’re told you’re Gold Policy will pay on the spot for you then be warned this may come with exceptions and only apply to certain services. Read carefully!
- Booking at home
This is reassuring before you leave, but the complexities of multiple agencies involved and their ability to protect themselves rather than protect you is astounding. Extra costs could rear their ugly heads in destination countries, and you will find you can get a better deal in location due to a higher bargaining power.
Ah man!
- Mobile/Cell Phones
Using your usual phone abroad is often not the best option. Plenty of hostel reception staff will tell you how great it is that you can get a $15 dollar phone down the road. Yeah, great, but you may have to pay for the sim card as well and a minimum credit top up.
- Subscriptions
Cancel subscriptions at home for phones, TV, internet, and any monthly services you subscribe to. Include other financial obligations as well, for example: freeze your car insurance so that you don’t waste months of insurance when you’re abroad, register your car off the road to make road tax savings, and postpone your gym membership.
- Visa Costs
Taxes entering and leaving countries are annoying, so always leave some local currency spare if this is the case. This particularly kicks in if you’re traveling on a whim and add a new location to your itinerary.
- Storage
Don’t underestimate your ability to accumulate things around the world. Your ability to carry certain levels of luggage will change by country, climate, and transportation method. Therefore, you may have to pay to store some stuff somewhere. Some hotels may store it for free if you plan to return there after a trip elsewhere.
- Memory Cards
Lots of people aren’t aware of the storage capacities of different GB memory cards. Whether for your iPhone or camera, traveling chomps up those megabytes for breakfast. So investing originally in larger memory capacities or having Facebook/Flickr accounts to upload your material onto can prevent you having to pay extortionate prices for additional memory cards in remote locations.
It all adds up …..
- Tax
In some countries, businesses take the liberty of omitting tax from their menus or price listings. Convenient for the business, but not for you when you realize you have to break that big bill you were saving for something important. After the added tax prevents your well-planned menu selections from fitting your daily budget, you may want to be wary as tax rates can change between cities, states and provinces. Don’t let it stop you from eating out, but be forewarned.
- Health and Beauty
Men, don’t think you’ve escaped this one. Items such as sunscreen, mosquito repellent, over-the-counter medicine, and whatever toiletries you use can be very expensive. We all have holiday left-overs at home which should make your packing list.
Guest Post by Matthew Nunn – Lifelong traveling fan who managed to stretch his budget round the world in 2011. This year he is exploring closer to home with his planned Spain and Portugal holidays.
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