Travel Series - Setting Expenses/Budget

This is the 4th installment of the travel series and today, we'll be talking about a crucial aspect of travel that many of us are very familiar with — money. As we all know, we need money to travel (and just about every facet of life). And with money being so important, managing our finances so we aren’t broke by the end of the trip becomes very important. So whether you're a solo traveler seeking epic adventures or jetting off with friends for a memorable getaway, mastering your finances is key to a stress-free and rewarding journey. For this week, I'll be sharing some tips that may help you with saving money. So with all that said, let's get right to it!

Alright, first things first. Let's talk about how to access your funds while on the road. One of the best ways to save money is by avoiding excessive and unneccessary fees by using a credit card that offers no foreign transaction fees worldwide (recommendations I make here are available only in America as I live in America). This gem can save you a ton of money in the long run. Being able to purchase anything while overseas without those pesky charges eating into your budget can be a life saver. Especially if you plan on staying for more than a week. Make sure to do your research and find a credit card that suits your travel needs. One thing to be careful about is the annual fees some cards have as that may be something you don’t want to pay for. Those types of credit cards do have more to offer in terms of benefits and rewards, but that annual fee is the tradeoff. When I was traveling around Korea, I used my credit card for many things as most places tend to take card over there and because I knew my card had no international fees, I never had to worry about any additional charge for any purchases. I just bought whatever I needed whether that was food or a train ticket.

For this next section, I want to move onto a similar topic: withdrawing money from atms. As some of you might know, withdrawing from atms internationally will result in being charged a fee. Everytime you withdraw money, you’ll be charged a fee and very quickly will that start to build up. Traveling can be pricey as it is so don’t let those atm fees be overkill for you. To combat this, I HIGHLY recommend getting a Charles Schwabb Debit Card. When using this debit card to withdraw money abroad, they actually refund you whatever atm fees you end up getting. So let’s say you accumulate $30 of atm fees from withdrawing money when you’re traveling around Mexico. At the end of the month, they actually just refund you $30 back into your account, no questions asked. You may ask what’s the catch? But honestly, there really isn’t any catch. They just do it, I actually don’t understand it either. But from my time traveling and using this card, they always refunded me the atm fees back at the end of the month. It’s an incredible card and for traveler that is able to get it, I highly suggest you do asap. Even if you already have a credit card with no international fees, you’ll probably still need cash for some countries like Japan as a lot of places over there still don’t accept card. Also, smaller shops may only be cash only so cash is still definitely an important thing to have.

As I said earlier, cash is still important to have. So, let's chat about another way to get bills: exchanging currency. This next tip could make a huge difference in your wallet. This is a standard rule I like to live by (aside from one scenario): NEVER exchange money at the airport. Those rates are usually sky-high, as there’s no nearby competition. Instead, opt for local banks or reputable currency exchange offices in the city. Look for places that offer competitive exchange rates, and don't hesitate to shop around a bit before making the exchange. This may require you to have the local currency already as you probably might need it to get into the city so if cash is the only option and you can’t get to the city with your credit card, I’d suggest trying to convert some money back in your home country before taking off. That’s what I like to during my trips, whether that was Korea, Japan, or Mexico.

Your travel plans will be different depending on your budget, so before you even set foot on that airplane, take some time to calculate how much you're willing to spend on your trip. Break it down into categories: accommodation, transportation, food, activities, and some extra for those unexpected gems you'll undoubtedly stumble upon. Having a clear budget in mind helps you stay on track and avoid overspending while at the same time, allows you to be as stress free in terms of spendings as possible on your trip. The last thing you want to do is spend a bunch of money in the first couple days of your trip, leaving you with little to nothing at the end of the trip. The key is balance and enjoying your trip thoroughly. For myself, I usually try and predict the things I’ll be spending my money on for the actual trip so that includes all accomodations I’ll be using for the entire trip, transportation including the flight, food, portable wi-fi or sims card, any monthly subscriptions I may have like adobe lightroom, and extra cash for the unexpected. Aside from the obvious items that have a set price like the accomodation or the sims card/portable wi-fi, I really try to estimate the cost. For example, for transportation, if I’m visiting Korea, I roughly am familiar with the costs of the buses and trains there so I can kind of guess how much it would cost for a week, two weeks, or however long I’ll be there for. If it’s for a country I’ve never been to before, I’ll try to get that information online either on google or reddit, then I’ll come up with an estimate cost from that and try to be flexible with that category. The important part really is the be flexible as nothing is set in stone. This is just to help you with your spendings during your trip and avoid destroying your finances.

Now, let's talk about the dynamics of budgeting when you're flying solo versus exploring with friends. When you're on your own, you have the flexibility to control your expenses entirely. But when traveling with friends, communication really is key. Try having an open conversation about budgets and expectations beforehand to ensure everyone's on the same page. There may be some outings where you’ll want to hang out with your friends and maybe grab a nice dinner. That may be more expensive than something you’d normally get if you were by yourself. Make sure to account for those types of expenses. We all know our friends better than others so you’ll probably have an idea about whether you’ll need to take that into account for your trip. But on the other hand, sharing costs for accommodations or transportation might save you a bunch as well, and group discounts can be a game-changer so definitely do take that into account as well. For example, when I was traveled to Hawaii with my friend earlier this year, I paid around $450 or so for the accomodation during our stay. Obviously, it was fun to have my friend there, but if I had traveled solo, I probably would’ve had to double that at least so I was also glad my friend was able to go, financially speaking.

Now let’s talk about another topic when talking about budgetting: short-term or long-term travel? Well, at the end of the day, it doesn't matter too much as budgeting is still important for both, though I’d say it’s essential for long term traveling. For shorter trips, I’d personally prioritize experiences that truly resonate with you. Whether it's local cuisine, guided tours, or cultural performances, allocate your funds wisely to create lasting memories. For me, I’d try to use my funds to enjoy my time to the fullest while at the same time, trying to get to the best locations possible for photos I’d want aka the time I went to the top of the Lotte World Tower in Seoul. I might’ve not gone up there if I had been doing long term traveling as it was pretty pricey, but I told myself it’s something I don’t get to do everyday, so why not? I also had some friends that wanted to go so that helped with my decision as well. If you're embarking on a long-term adventure, strike a balance between affordable stays and splurging on special occasions. At the end of the day, it’s all about enjoying your travels so remember: it's all about finding what brings you the most joy.

Last but not least, let's uncover some savvy money-saving tips. Try opting for local street food or local restaurants over fancy restaurants or cooking in when possible, use public transportation if available (or bikes if available), and consider accommodations like hostels, Airbnbs with long term stay deals, and hotels in less touristy trap areas for cost-effective lodging. Look for city passes or attraction bundles to snag deals on popular sights if you’re into those. It really is all about striking a balance between enjoying yourself and being mindful of your spending. Personally for me, I am trying my best to be more minimalistic and always ask myself when buying something if it’s really going to be helpful for me (especially photography gear). That mindset has definitely helped me be more efficient in terms of my finances.

Anyways, that’s all for this week. Remember, it's not about being cheap, but rather about making the most of your travel experience while keeping your finances in check. For anything I may have not mentioned here, feel free to share your own money management tips or experiences in the comments below—I'd love to hear from you! And with that, you’re pretty much ready to going out and enjoying your trip! I hope these tips and this series have been helpful to you and you're better equipped to navigate the financial landscape of your next adventure, whether you have specific goals and experiences you want for your trip or you just want to venture out and let whatever happens happen. I could go on and on about the types of goals and experiences you can have while traveling, but a lot of the fun is finding out for yourself.