Not everyone thinks about savings when they’re traveling.
In fact, the time for budgeting is long before take-off. Usually, budgeting takes place as travelers create their itineraries and set aside funds for the major expenses like lodging, transportation, and tours.
The approach is usually methodical and measured.
But it’s easy for that financial savvy to go out the window while mid-vacation. After all, it’s time to unwind and live a little. Who cares about spending a bit here and there for an extra sweet treat or a cheeky souvenir?
Unfortunately, it’s easy to start hemorrhaging money while vacationing. We tend to be a little more impulsive and on the hunt for a good time. Even little things can pile up quickly.
Those who aren’t careful to stay on top of their spending might be in for a rude awakening when they get home and check their accounts.
If you want to avoid overspending abroad, then focus on these main areas. They’re usually the main culprits when it comes to unexpected expenditures.
International phone plans
Millions of tourists pay for international phone plans. Unfortunately, service providers know that people want to stay in the loop when traveling—which means they charge exorbitant fees for basic features like texts.
But if your cell plan already covers international roaming (and many do), you don’t need to pay extra. T-Mobile has one of the better roaming plans, for example.
Instead, you can use Wi-Fi to make phone calls, video calls, and browse social media apps. But make sure that you only connect to trusted networks. Using free public Wi-Fi exposes you to hackers and scammers.
Travel insurance
You might not need travel insurance when you travel internationally.
In general, travel insurance is useful only for those who wouldn’t be able to get home if something goes wrong on their trip. It’s required by countries because they don’t want you to become a financial burden in the case of disaster.
But if you’re in solid financial standing and didn’t fork over more than $2,000 for a single tour or day trip, you should be fine without it.
Gift shop trinkets
Tourists are always on the hunt for a quality souvenir. Not only do these serve as gifts for loved ones, but they’re also memorabilia.
But try to avoid purchasing gift shop trinkets in touristy areas. In fact, I recommend avoiding souvenir shops in general.
If you want to pick up souvenirs, try to shop around at stores that specialize in things you’re interested in. That might be a handmade book in Venice, unique tiles in Porto, and so on. These will have higher-quality products than a general souvenir shop.
Tourist trap restaurants
Just like avoiding souvenir shops in touristy areas, you might also want to avoid the restaurants. If someone walks up to you and offers you a menu, it’s a pretty good indicator that you’re going to be overcharged for a flavorless meal.
Foreign transaction fees
Most tourists have a travel rewards card—which is what you should be using abroad, almost exclusively.
Foreign transaction fees on non-travel rewards cards can quickly add up depending on your bank and the country where you’re traveling. This is one of the prime culprits when it comes to overspending abroad.
If you don’t have a travel rewards card, you can save by using cash. But this can also be a risk in terms of pickpockets.
If you don’t have a travel rewards card, consider putting all your trip charges on a single rewards card of a friend or family member who is traveling with you. It will give them a boost in terms of points, help you save on foreign transaction fees, and make it easier to divide expenses later, as they’re all in one spot.
Cabs/ride shares
Depending on where you’re going, public transportation might be more accessible and affordable than taking a cab. In many cities, it’s probably also faster.
If you’re able to, avoid taking cabs or ride shares throughout the day. Even by offsetting one of your daily journeys by taking the bus or a train can save you big – especially on longer trips.
Overpacking vs. Buying on arrival
My last piece of advice is a bit complex.
On one hand, travelers can save by avoiding overpacking. Overpacking might force you to pay insane weight fees to airlines—especially if you have multiple flights scheduled on your trip.
My first piece of advice: your luggage isn’t going to get any lighter, so it’s best to start off a little empty. This will prevent you from paying any overweight fees.
However, I also caution against the mindset of ‘I’ll buy it when I get there’ for smaller travel amenities like toiletries. Like souvenir shops, these types of toiletries can cost you an arm and a leg when in a popular area. (They know tourists might come unprepared.)
So, pack lightly to avoid paying weight fees, but not so lightly that you’ll be overspending on products when you arrive. (Simple enough, right?)