Travel
A practical guide to managing your money while you travel
Travelling is pure joy until the money side starts tripping you up. Here’s how to keep everything humming along while you roam, so you can focus on the experience, not the admin.
By Karen Bleakley
Managing money while travelling used to stress me out even more than flight delays, lost luggage or trying to cram a month’s worth of attractions into a week-long trip. I’ve had my fair share of challenges, from my bank freezing my card just as I was trying to book the last places on an almost sold-out tour to coming home to discover my car rego had been cancelled because I’d forgotten to update the system with my new debit card.
As a member of the Australian Society of Travel Writers, I love everything about travelling – from planning and researching to booking and co-ordinating, but learning to manage the money side of things has taken me a good couple of decades. Missed bills, surprise fees, overspending early in the trip... I’ve made all of the mistakes. Over time, I’ve created some simple processes that keep everything running smoothly whether I’m away for a week, a month or more.
Here’s exactly how I manage my finances on the road now and how you can adapt these steps to make your own travel stress-free, too.
1. Before you go, get your home finances sorted
Automate but monitor your bills
As I can’t receive paper bills while I’m away, I make sure all of my regular bills like utilities, insurance and subscriptions are on direct debit and set up for e-billing. The key is to automate, but not set-and-forget. I keep a simple list of due dates and amounts, and I check my bank accounts regularly to make sure everything is going through correctly so I can follow up if a payment is overcharged or missed.
Reminder: When you get a new debit card, update every bill linked to the old one straight away. Even better, link bill payments directly to your bank account instead of a card, so you never have to change anything again.
More strategies here: 4 steps to get on top of your household bills permanently
I learnt this the hard way. I once came home from a month in the UK to find my car rego had been cancelled because I’d forgotten to update my card details – my husband had actually received a reminder email while we were away, but didn’t think to tell me! Although it had only lapsed by seven days, I had to pay an extra fee plus two months of rego up front to reactivate it.
Now, I always double-check that bills and card payments are set up before I leave, so I can focus on enjoying the trip instead of worrying about missed payments.
Keep an emergency buffer
I always try to maintain funds in an accessible account for any surprise costs that come up on the road, whether travelling overseas or in Australia. A chipped tooth or another unexpected medical bill can throw your plans out.
On our most recent UK trip, a hidden pothole caused a puncture in the car we’d borrowed from family, leaving us with a 24-hour repair call-out fee of $1000. Ouch.
Life happens, so it’s important to be prepared.
Notify your bank
Before travelling, I always tell my bank and card providers my dates and destinations. This reduces the risk of cards being flagged for fraud while you’re trying to book something important.
I learned this one the hard way when trying to pay for almost-sold-out Harry Potter Studio Tour tickets, while my bank kept blocking the payment as suspicious. It was very stressful!
Check your login access
Many accounts need SMS verification to log in. When I travel internationally, I usually use an eSIM with a local number, but I always make sure I can switch back to my Aussie number briefly if needed, so I can receive any verification codes. There is nothing worse than needing access to an account that won’t let you log in.
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2. Budgeting and tracking while you travel
Build a realistic travel budget and track your spending
It seems a lot of people would benefit from better budgeting when they travel. Compare the Market reports that 40.4% of Australians blew their travel budget by an average of $11,518 on their last holiday, which is a huge amount to overspend. Tracking your costs is the best way to avoid this, as it lets you see when spending is getting out of control so you can pull back.
Before every trip, I create a travel spreadsheet with categories like:
• accommodation
• transport
• food and drink
• day trips, tours, tickets
• travel insurance
• spending money
I start with estimates and update costs as things are confirmed. This gives me a clear picture of where our money is going and helps me decide when to reduce costs and where I want to splurge.
This should help: Insider secrets to reduce your travel costs – don't miss this list
On big trips, I also track daily expenses. During an eight-month adventure around the world a few years ago, logging everything showed me how costs changed from country to country and helped us adjust our budget. With one pot of money to last the entire trip, tracking the details stopped us from blowing it all in the first couple of weeks and helped us pace ourselves.
Apps like wanderlog, TravelSpend or Nomad Wallet are great if you prefer digital tools, but I personally still like using a physical notebook and spreadsheet to jot notes and log totals.
Spend in the cheapest way
Wasting money on fees is the worst. Those little fees can add up fast. According to savings.com.au, Aussie tourists are losing nearly $100 per person in international transaction fees. That money would be much better in your pocket.
To counteract this, I choose cards with no or low foreign transaction fees. Some credit cards include free travel insurance, but always check the fine print.
Multi-currency accounts like Wise or Revolut can help you hold and convert currencies at favourable rates and withdraw cash as needed.
3. Managing cash vs using cards
Cash
Gone are the days of travellers' cheques and carrying a bundle of cash. I don’t take local currency with me now. I usually withdraw a small amount from an ATM at the airport for basics, but in most destinations, cards are the easiest way to pay. Always research your destination as some places still rely on cash, especially off-the-beaten-track destinations.
If I know I’ll be using cash, I withdraw it in reasonable chunks to minimise fees, without carrying too much at once. And my husband and I always split our cash between us for safety.
4. Staying mindful of spending abroad
Research local costs
Before any trip, I look up prices for meals, taxis, public transport, tours and attractions. This helps me avoid overpaying in places where tourists are easy targets.
The first time I arrived in Thailand, I hopped into the first tuk tuk I saw and paid four times the normal rate. That experience taught me to slow down. In places where haggling is expected, I never make a quick decision because the price always drops.
Keep your cards safe
I always store a backup card separate from my main one, just in case. I also use an anti-theft bag or a wallet with RFID protection to help prevent unauthorised scanning. It gives me peace of mind knowing I’m covered if anything happens while I’m out and about.
Feature image: iStock/pixelfit
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