Managing money is already a challenging task in and of itself, but when you’re also a frequent traveler, it can be a lot more complicated than you think. Unless you have unlimited income to burn, then establishing a smart money management system is a must when you jet-set around the globe on a regular basis.
Before embarking on your next adventure, take the time to review your finances. Even if you are not struggling with your finances as of now, it’s always a good idea to have an effective system for managing your finances, not only to ensure your financial security but to also get the most out of your hard-earned income.
Here are some great financial management tips that will benefit frequent, long-term travelers.
Even if you’re not a frequent traveler, investing is one of the best ways to grow your money and help secure it against inflation. There are a lot of investments that you can look into, such as real estate, stocks, mutual funds, and much, much more. However, there is always a risk when it comes to investing; it’s just a matter of how much risk you are willing to take.
Consult with a professional investment advisor that can guide you in making the best investments based on your level of income and life priorities.
Set up autopay
When you’re traveling all the time, it’s easier to forget about due dates and incur late fees on top of a damaged credit score. Luckily, you can easily solve this problem by automating regular payments for your household bills, cellphone service, mortgage, and other expenses that require regular payments.
Find a high-interest savings account
Many savings accounts have little to no interest and provide minimal earning power. However, most frequent travelers are forced to keep their savings in these low-interest accounts for the sake of easy access while on the road.
An excellent way around this is to find a high-interest savings account that you can easily access online from anywhere in the world. In this way, you can let your money grow while still keeping it within easy reach when you need it.
Separate your travel funds
While you have your savings tucked away in a high-interest account, keep your travel funds separate in a bank that has a lot of ATMs around the world. Doing this will help you avoid touching your savings while traveling, which tends to happen if you keep everything in one account. Moreover, keeping these funds separate will help minimize the impact on your finances in case one of your accounts is compromised.
Sell your house
Now, this seems like a drastic measure, but consider this: if you’re traveling frequently and only staying in your house sporadically, it is more of a liability if you’re still paying the mortgage. Unless you are renting it out, it could be a smarter move to sell your house and use the mortgage money for investments, travel funds, and retirement savings.
In addition, having no house to tie you down will allow you more freedom to rent wherever you want without the additional expenses on top of a mortgage.
Staying in one destination for a longer period of time is inherently more cost-effective than moving from place to place frequently. Rent is cheaper for longer stays, you can learn where the cheaper stores are, and you can even take up temporary jobs to supplement your income. So, when planning your next trip, consider staying for at least a month instead of just a few days or weeks.
Scout for discounts and freebies
Take advantage of the best loyalty programs, discounts, and freebies that you come across. It will help you save money and make your trip more enjoyable. However, stay away from promos or programs that require you to unnecessarily spend money.
Work on your budgeting skills
Staying within your budget becomes even more crucial when you are a frequent traveler. Every time you plan a new trip, establish a realistic budget based on your destination’s cost of living (and the activities that you want to do). Keep a budget tracking app to ensure that you’re spending below your budget. It will take a lot of self-discipline to be able to master this skill, but the sacrifices that you have to make will be worth it in the long run.
Frequent traveling does not have to equate to an expensive lifestyle. With these financial management tips, you can save money, protect your investments, and build a financial safety net all while traveling around the globe to your heart’s content.