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The Hidden Costs of Travel: How to Plan and Budget for Unexpected Expenses

Written by Daniel Johnston | Mar 30, 2023 7:36:00 PM
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    Don't let unexpected expenses ruin your next trip! We've all been there: we budget for the big-ticket items like flights and hotels, only to be caught off guard by hidden costs. So, here’s a quick guide to help you plan and budget for the unexpected expenses that can arise when travelling.

 

Medical costs

This is a very important one, especially if you’re going overseas. Medical emergencies can happen at any time while travelling, and getting medical treatment can cost you thousands of dollars (depending on your destination).  come at a very high cost (often in the thousands). So, protect yourself with a good travel insurance plan that covers medical emergencies. And don’t just go for the cheapest plan, but check the fine print to ensure you're fully covered.


Baggage fees

Pack light, they say. Easier said than done! But that’s also a key way to avoid one of the most annoying and inconvenient costs for travellers – baggage fees. For your comfort, research airlines with generous baggage allowances when booking your flight. Also, paying for extra allowance is often cheaper if you do that at the point of booking, rather than at the counter.  


Withdrawing and spending charges

From ATM withdrawal charges through to exchange fees and credit card fees, it can cost you extra money to use your money overseas. To minimise these costs:

  • Check which local banks offer the lowest fees, and when you find one, withdraw as much as you can (keeping in mind that it’s best not too carry too much cash in your wallet, from a safety perspective).
  • Avoid exchanging currency whenever possible (dodgy currency exchange is a common form of scam around the world!).
  • Look for credit cards that waive foreign transaction fees and try to avoid cash advances whenever possible. 

Data roaming charges

While your trusty device helps you navigate new cities, capture amazing memories, and stay in touch with your friends at home, it can also come with hefty international roaming charges if you’re not careful. So, how can you avoid those pesky fees and still stay connected on the go? 


Check with your mobile service provider for international packages on data and calls, get a local SIM card if you're away for more than two weeks, or put your phone on airplane mode and then use offline maps and public WiFi.


Expensive car rental insurance

When it comes to renting a car, many travellers purchase the car insurance policies that car rental companies offer, which can be more expensive than other options. But there are ways to reduce this cost. Sometimes, you can save money by purchasing a separate car insurance policy from a different insurer or third party, rather than purchasing what the rental car company offers. Just make sure to thoroughly check what is, and what isn’t, covered in the alternative policy to ensure you have the right cover.


Buying essentials

A forgetful packing job can add to the costs, too. For example, not having proper winter clothing when travelling to colder climates may mean you have to buy expensive clothing overseas. The solution? Give yourself time to plan and make a list of all necessary items you need to bring with you – from toiletries through to chargers, adapters, and proper footwear. 


Replacing things

Sometimes things get misplaced or break while on the go; even the best quality-equipment doesn’t last forever. To minimize replacement costs, take good care of your belongings and create a checklist of essential items before leaving each place. Also, have an emergency fund in place, to cover the inevitable times when you need to replace your gear. 


And remember… 

Travelling is also about experiencing the unexpected! While budgeting for emergencies and unforeseen expenses is key, you can’t control everything. In fact, sometimes the most memorable experiences happen when we step outside of our comfort zones and allow ourselves to embrace the unknown – with a backup plan, of course.




Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion, and seek independent guidance.


 

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