When you’re busy planning a holiday, your mind is focused on all the fun stuff you get to do abroad. But it’s a good idea to think about how your trip can go off script. A little forward thinking can help you avoid the hassle of paying unexpected bills while on vacation.
Save Up a Little Extra
After you figure out your budget for the trip — this budget should include airfare, accommodations, and a daily allowance — you should save a little extra on top of this amount.
There’s a good chance you won’t have to dip into these savings while you travel. But you’ll be happy to have them in case you run into anything unexpected — which makes them worth the extra time and effort it may take to save.
If the airline loses your luggage and you don’t get compensation for a few days, you can rely on these savings to replace urgent medication right away.
Use a Line of Credit
Knowing you have a line of credit sitting on standby can give you peace of mind — whether you’re off on holiday or home taking care of family business. That’s because a line of credit can provide help when your savings fall short of what you need in an emergency.
This can come in handy if you run into some bad luck abroad and at home simultaneously. Suppose you have to empty your emergency fund to handle an urgent expense abroad and come home to a leaking roof.
If you don’t have other savings set aside, you can contact a lender like Fora to see if you qualify. If approved, you may rely on a Fora Credit line of credit to hire a roofer before it becomes a safety risk for your family.
Depending on your policy, travel insurance can help you handle any hiccup on holiday — from delayed flights to a medical expense abroad.
Before you purchase a plan for your trip, check what your credit card provides. Some credit cards have travel and car insurance as an added perk for consumers.
Avoid These Expenses — It’s the Best Possible Way to Prepare
With a little research, you can plan around common expenses that are easily overlooked.
- ATM Fees: Taking out cash at a local ATM can charge a lot of money. You can skip this fee by going to your bank beforehand to take out the cash you need.
- Checked Baggage: If you fly with a budget airline, you might have to pay to check your luggage. If you can’t pare down to a carry-on suitcase, check your credit card to see if your perks include checked baggage.
- Data Roaming: Using your phone while it’s out of network can wrack up unbelievable fees. Go online or speak with your provider to sign up for a travel plan while you’re abroad.
- Foreign Transaction Fees: If you’re a cashless traveller, watch for foreign transaction fees. These go above and beyond currency conversions.
- Taxes and Fees: As a Canadian, you’ll be used to paying sales tax on everything you buy. However, some foreign cities apply an additional tourist tax that bumps up the price of certain items and tourist sites in your itinerary.
Planning ahead can save you the surprise (and cost) of these expenses. Emergency savings, a line of credit, and insurance serve as good safety nets for other surprise hiccups you don’t foresee.