Plan Your International Trip by Investing Today

by Pooja Shetty Financial Advisor

Plan Your International Trip by Investing Today

Traveling abroad for a holiday is exciting. To ensure you have a good trip, planning is important. It is easy to look forward to an amazing time once you book your tickets. However, there are several things needed to ensure you have a good trip.

Here are six points that may help you plan your next international trip without any constraints.

1. Check the validity of your passport and apply for visa

Before you go ahead and book the tickets, ensure the validity of your passport. It is recommended that your passport has at least six months before expiry when you travel internationally. In case the expiration date is near, consider renewing it before planning your trip. Several countries require visas to allow you to enter their nations. It is recommended you check the visa requirements of the nation you want to visit and complete the formalities to have a hassle-free trip.

2. Maintain copies of all important documents

During your travel, you would need a few important documents, such as passport, license, and credit cards. To ensure you do not have any trouble in case these documents are lost or stolen, maintaining copies of the same is recommended. In addition to carrying a copy of all documents, it is advisable to retain photocopies with relatives or friends back home. When you have the copies, the authorities will be able to help you in case of loss or theft of the documents.

3. Check the entrance and exit fees

Some nations may levy entrance and exit fees in addition to a visa requirement. It is recommended you check such fees and charges to prevent any trouble when you visit a foreign country.

4. Avail of a health and travel insurance

You may already have a health insurance plan. It is recommended you check if the same covers international travel. In case your existing health insurance does not offer international coverage, you may avail of a short-term policy valid during your trip. Furthermore, it is advisable to avail of travel insurance to protect against certain possibilities. Different insurers offer various kinds of coverage and conducting a research on these options to make the right choice is recommended.

5. Exchange some currency

There is a possibility that you may have to incur some expenses as soon as you land even if you have made prior bookings. These expenses may be traveling to your hotel or paying the car rental deposit. You may also need to grab some snacks during the travel. Paying for these through your domestic credit card may be expensive. To avoid this situation, it is recommended you exchange some currency prior to leaving your country. The currency exchange may take a few days depending on where you want to travel. Ensuring the exchange is done will avoid last-minute rush and delays.

6. Prepare your finances

It is important that you do not borrow money for an international trip. You may use your credit card to pay for the international expenses. However, it is important you check the conversion charges levied by your company before you use it. You may also be tempted to use your investments like fixed deposits or the emergency fund to pay for your trip. However, all these must be avoided to fund an international trip.

Here are three ways to save and arrange for the funds needed to enjoy the foreign trip.

· Early planning

This is important because when you start planning early, you will be able to save more money. If you plan your trip six to eight months prior to your travel date, you may be able to avail of excellent airfare, hotel, and currency exchange deals. Furthermore, you must consider traveling on weekdays because tickets on weekends are generally costlier.

· Consider all expenses

When you plan an international trip, you need to consider all expenses, such as restaurants, tourist location charges, internal travel, and others. Looking for coupons or group discounts online may help you save a significant amount during the trip.

· Investing especially in equities

If you start your planning two or three years before you want to travel, equity investing may be an excellent option. However, you would have to open a demat account online to invest in equities. Although it is a risky option, the potential returns are very high. If you have a demat account and want to travel two years later, start investing in equities today.

However, if you want to travel in a year, debt instruments may be a better option. You may have to save more every month because the returns on debt products in the short-term are not very high. Alternatively, you may consider a recurring deposit (RD) with any financial institution. Several institutions offer deposits for travel planning. If you choose this option, generally the financial institution pays an additional installment on your behalf. Furthermore, you may be able to avail of discounts if you travel with a partner company.

International travel may be expensive if you do not plan properly. So, follow the aforementioned tips to not only save money but also ensure you do not face any difficulties in a foreign country.

Start investing today and have a memorable trip.