After a multi-year pandemic, many of us are dreaming of a change in scenery. But travelling can be expensive, and odds are that there’s a recession looming on the horizon. So what could you do to keep to your budget during your holiday? Planning ahead, for one. With that in mind, here are 5 money-saving hacks you can use while preparing for your trip:
1. Use a Digital Multi-Currency Account
It used to be that we’d have to trek to a money changer just before a trip if we wanted the best exchange rates. Swiping your card while overseas was a big no-no since you’d be paying the credit card association’s fees on top of an FX rate with hidden markups.
Sure, you could open up a multi-currency account at your local bank, but the exchange rates are hardly any better. Most banks also don’t offer many options for foreign currency. (DBS, for example, supports just 12.)
Fintech has changed that. Multi-currency accounts like Wise and Revolut directly address those pain points by offering features like:
- The ability to lock in favourable exchange rates with just a few taps in an app
- Mid-market exchange rates (the rates bank use when they trade with one another) guarantee no hidden markups
- Low or no minimum balance to maintain
- The option to request a physical card, if needed
Revolut, for instance, supports card payments and ATM withdrawals in over 140 currencies. So if you’re planning a multi-leg trip and don’t want to hold a lot of physical cash, it’s an excellent option.
2. Take Advantage of Credit Card Offers for Free Miles
What better way to get discounted flights than to get a miles-focused credit card?
Some credit cards even have generous welcome offers provided you spend a certain amount within the first month or two of card approval – like the 22,000 KrisFlyer miles the American Express KrisFlyer Card gives. (That’s a free flight to Bali right there.)
Many of these cards also give bonus earn rates for travel bookings like hotels, car rentals, and tour packages. You could rack up those free air miles very quickly just by planning a trip with your family.
3. Charge Airfare to Your Card for Free Insurance
Insurance may seem like a small sum compared to the thousands you’re paying for flight and hotel bookings. Still, when you’re on a budget, not paying for insurance means you’re a couple hundred dollars richer.
Many travel-focused credit cards, like the Citi PremierMiles Card, offer free travel insurance when you charge your airfare to the card. Others offer discounts on packages from partner insurers.
Be sure to check the policy wordings as well as which insurer is underwriting the package. Most of the time this isn’t a big concern, but you’ll still want to make sure you’re covered by a reputable company.
4. Skip the Packaged Tour and Plan Your Own Itinerary
Packaged tours are great because they do all the research and planning for you.
But if you’re open to doing that yourself, you might find an itinerary that’s a lot more flexible and customised for your preferences.
And who knows: travelling off the beaten path may be the best way to create unforgettable memories!
5. Scope Out the Local Transportation
Everyone who lives in Singapore knows how accessible public transport is. As long as you have an EZ-link card (or a credit card with SimplyGo functionality), you can travel just about anywhere within the island city.
And while not every country has a great public transport system, all of them have their own inexpensive ways of getting around. India and Indonesia for example, have motorbike taxis. These are the preferred way to travel given the rampant traffic congestion.
Do a bit of research to find out what the locals use – and keep an open mind while you’re at it.
