Going on vacation can break the bank – but it doesn’t have to. The world is vast, and with it comes a plethora of budget-friendly travel opportunities waiting to be uncovered. So, if you are looking to jet off on an adventure of a lifetime while still tightening your belt, here are some tips on better managing your finances abroad.
Keep track of global financial trends
When traveling abroad, you’ll not only need to think of your budget in dollars but also how it fares with the local currency, too. Exchange rates are determined by the supply and demand for foreign exchange and the strength of the dollar, both of which are affected by a wide range of economic factors such as inflation, recession, optimism, confidence, employment rate, income, expenditure, imports, exports, economic growth, and more.
By consulting the economic calendar, you’ll be able to keep track of current global trends, including foreign exchange, so you can better estimate how much local currency you can get per dollar and predict how expensive that country will be to explore. The economic calendar shows real-time insights and predictions for the next day or the next week.
Further to this, if you are still in the planning stages of your vacation, looking at the economic calendar can help you to determine which countries are expected to stay relatively consistent – after all, there can sometimes be a massive gap between booking the vacation and jetting off. With this in mind, it can give you peace of mind that there won’t be any expected dips or peaks that could affect the value of your money.
Tourist hotspots are popular for a reason. However, as mentioned above, the higher the demand, the higher prices can get. This can leave these locations a little out of reach for the cash-strapped traveler.
That said, there are many untapped or even unusual locations that are just as breathtaking as their well-trodden friends but are a lot more affordable. Of course, this does mean that often these locations will not have as many amenities as the more touristy places. But, if this doesn’t bother you, it can open up many opportunities.
For example, backpacking and staying in hostels can be both exhilarating and budget-friendly, boasting low board rates and lower luggage charges – provided you don’t mind living without luxury showers.
Backpacking also makes it much easier to take advantage of local public transport networks – and traveling by land is often more cost-effective than traveling by air. Most places will also have a wide range of free or low cost activities you can take part in, such as walking along hiking trails or visiting local museums.
But this by no means requires you to live without delicious food. Instead of checking out branded chain restaurants or the hotel bar, ask locals for their recommendations.
This will allow you to get more for your money and give you a more authentic feel for the culture you’re exploring. And there you have it – just a couple of ways travelers on a budget can better manage their finances to get more bang for their buck.