Following the pandemic, travel became a much higher priority for most people. A travel survey from Forbes revealed that 49% of consumers plan to travel more in 2023.
While there are plenty of ways to travel without breaking the bank, some don’t have the same level of financial literacy to do so, and others have the tendency to overreach their finances.
Still, if traveling more is one of your or your family’s goals for this year, you might want to first take a look at the state of your financial wellness.
What is financial wellness?
Financial wellness is essentially the practice of managing your finances in a way that allows you to achieve your financial goals and live a secure and happy life.
Of course, taking vacations and traveling are also part of a well-balanced lifestyle. But with all things, it must be done in moderation.
When traveling, it is important to maintain financial wellness because it helps you plan for unexpected expenses, manage your budget, and make sure that you are not overspending on unnecessary items.
Set Realistic Goals
Narrowing down the main purpose of your trip helps you determine how much you are to budget.
Some people prefer to spend time in nature and learn about the culture, while others prefer to shop for items or go on food trips. Some of the top travel destinations like Japan or London will allow you to enjoy a bit of everything.
But, you can always prioritize and plan around experiencing certain locations and events to make your plans more realistic. This is also useful if traveling with children, friends, or a romantic partner.
Create a Budget
Traveling can be expensive if not planned properly. According to an Affirm survey, three out of four millennial and Gen-Z respondents said they plan to take up to six trips in 2023, and half of those respondents reported they plan to spend up to $5,000 on travel expenses this year.
Budgeting entails a lot of research and planning. You’ll need to consider accommodation, transportation, meals, shopping, and emergency expenses.
Another tip would be to compare prices for flights, hotels, and other activities to find the best deals. Use a spreadsheet or an app to build your budget efficiently.
Travel on Credit
Although we encourage readers to save up for their travel expenses as much as possible, it’s also beneficial to use credit perks when traveling.
For instance, you can use flexible, pay-over-time options to spread out your costs or wait for deals from airline and hotel companies partnered with your card.
However, make sure that you’re not letting credit checks impact your credit score.
If you plan on traveling on credit soon, space out your financial applications because each hard check can lower your credit score.
Tracking expenses while traveling is also another challenge, as it’s easy to be swayed by fast-paced activities.
It can also be difficult to coordinate finances with family or a friend group since you have to choose between splitting expenses or paying as you go.
Luckily, it has become much easier to track expenses while traveling thanks to applications that can easily categorize your spending. There are even some AI-powered ones, and ones that can integrate with different payment methods to make tracking much simpler and more automatic.
Be Financially Healthy While Traveling
Traveling is an exciting way to see the world and create lasting memories with friends and loved ones. Because it can be expensive if not planned properly, it’s best to go only if you’re confident in your financial state.
This will keep you stress-free during your trip and will ensure that you’re returning to a sound bank account.
Moreover, maintaining good financial health will allow you to reap rewards such as extended stays, airline miles, travel cashback, and other useful travel perks.
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