International tourism is rapidly on the rise, experiencing a 7% increase in the last year according to data from the United Nations World Tourism Organization. In response, countries are preparing for the tourism boom and the increased revenue that comes with it. However, backpacking across the world come with a price tag attached, with the round the world trip being estimated at anywhere between $20,000- $30,000. However, before setting off on your round the world trip, it may be smart to get yourself financially ready.
Ensure Your Access (And Knowledge) Is Global
Each country has its own preset financial rules including cash limits, withdrawal amounts and accessibility to international accounts. To find out the travel allowance and travel restrictions, have a look at the country’s individual tourism advisory website for travelers. With the introduction of financial technology into the banking world, companies have plugged billions of dollars into inventions such as mobile apps. This applies to credit card companies and lenders. Check with your banking provider about their global services on offer and if available, install their banking app.
Research the currency and get familiar with the average currency conversion of the different countries. While you do not need to know the exact conversion, it is good to have an idea of how the local currency translates in other countries. Use this to gauge your spending and use it as a starting block to create a budget aligned with your goals. Allow some room in the budget for emergencies and unexpected expenses that always seem to pop up.
Take Steps To Secure Your Identity
Almost 60 million Americans have been affected by identity theft, according to a survey by Harris Poll in 2018. With the recent progression in technology, digital identity theft and fraud is also on the rise on a global scale. The most form of common identity theft for 2017 centers on financial information, mainly credit card information. While visiting these various countries, security of your sensitive information can be compromised. As a response to this epidemic, many banks and lenders have introduced fraud and spending alerts as a part of their standard package. Finally, the rise in identity theft has been linked to smartphone use. Installation of a suitable protection app on your mobile phone can reduce your chances of being at risk.
Always Have A Backup Plan
As you prepare to travel abroad, one thing to consider is the possibility of an emergency arising abroad. To begin with, aim to have an emergency fund so that if something unexpected happens while you are traveling, you will have access to some extra cash. Each country also has their individual travel requirements. In this way, you are better prepared for the change in culture you are about to experience or for any emergencies that may pop up.
Finally, be sure to know the locations of the consulate in your home country should you need their assistance. You can register yourself at your local embassy in each country. In the event of an emergency arising, the embassy will contact your family if needed. To access your country’s local embassy information in your travel destinations, check out the World Embassy Page. Most embassies now offer the option of registering online, which is simple and convenient. If you find yourself in a situation without access to cash, you will need to have your family’s or friends’ contact information easily stored.
Whether it is budget or first class, being financially smart plays such a big part in achieving your travel dreams and achieving them. With a few steps beforehand, you can protect yourself and practice perfecting your money management skills. With your finances in check, you can focus on enjoying your adventure and the beauty the world has to offer.