One of the best bits of advice I could give anyone is to travel while you’re young. You have your youth and your health on your side. Trust me, once you get bogged down with a career, mortgage and family commitments, it is so much harder to do the budget, backpacker thing for any length of time. My twenty year old daughter is just about to complete her tourism studies and has plans to don the backpack and head off. We’re in full support of this knowing it will probably be the only opportunity to experience the true freedom of backpacker travel.

Running out of money while abroad is every traveler’s worst nightmare. The situation can be horrible enough to put a dampener on even the best laid plans.

In order to avoid running through all the cash set aside for a trip in a few days, it is advisable for travelers to draft a realistic budget. This budget will enable an individual to have an idea of how much cash to set aside for the trip, keep track of expenses and to choose the most cost-effective means of travel, food and accommodation. A travel budget makes it easy to regulate spending and allows individuals to make the most of the cash they worked so hard to save.

Running out of money

Several situations can result in a loss of funds whilst abroad. The most common include being robbed of all cash, ATM cards and other documents, overspending on food, accommodation or travel costs, local exchange rates that are higher than expected, ATM failure and medical emergencies while traveling.

Although being abroad without funds presents a difficult dilemma and can be downright debilitating, it does not necessarily mean that a trip has to be terminated. The most important thing for vacationers to do is to keep their wits. Though dire, the situation does have solutions.

There are various ways in which individuals can get cash back into their pockets when they find themselves broke in a foreign country. Being aware of the potential solutions would make it easier and less stressful to deal with the scenario, should it arise.

How to survive

The first step is for the individual to analyze the situation with a clear and open mind. Being broke abroad can mean one of two things: that the person has completely exhausted all funds that they had or that they have sufficient funds but lack access to them.

Solving these two problems requires slightly different approaches:

• Seeking temporary local work

This solution is ideal if the traveler is completely broke and has no reserve cash. No matter how remote or foreign a place is there is usually some opportunities to earn money for those who find themselves broke. For instance, such individuals can earn money through bartending, washing dishes, serving or busking on the streets. Some can even earn decent cash by teaching English as a foreign language.

• Cash transfers

Another solution to salvaging a doomed trip is by receiving a cash transfer. This is a viable option for those who have temporarily lost access to their cash. Nowadays there are a variety of firms, such as Trans-fast, offering reliable, secure and fast money transfer services. The travelers can ask their friends or relatives back home to transfer money to them. They can then pick up the remittance in cash or they can have the funds transferred directly into their bank accounts.

If all else fails, vacationers still have the option of asking their local embassies for help. Most embassies can loan money to their nationals abroad to cover the costs of getting back home.

We all enjoy the chance to get away for a while with friends or family, whether it be a short city break or a fortnight on the beach. When all we need is a little rest and relaxation, the last thing we need during our precious time away is to worry about money, but for many of us this is the case.

Here, we consider several simple things you can do to make sure that your holiday isn’t ruined by financial worries.

Consider the exchange rate

Exchange rates fluctuate on a regular basis, changing the amount that it costs you to holiday in respective destinations. Keeping a close eye on the exchange rates at the time of planning your trip can therefore save you a considerable amount of money when the time comes to travel.

Rather than cutting down on the things you buy and the activities you take part in, securing a good exchange rate can ensure that you’re getting the most from your money, allowing you to spend it as you wish while you’re travelling.

Buy currency before you leave

The way in which you acquire your cash for your trip will have a bearing on the amount that you spend. If you run into poor exchange rates or high levels of commission when exchanging your currency, you can easily end up spending more than you need to while you’re away.

The important thing to know is that exchanges at the airport will usually offer some of the worst rates, or they will charge you a hefty commission for your currency. The best option is to allow plenty of time before you leave to compare the rates of exchange and commission at your local outlets.

Acquiring your currency in advance will give you plenty of options and will help to ensure that you find the best possible rate.

Know your options

When you arrive at your holiday destination, you’ll probably need to top up your cash, or to use a card for your spending. Taking an American Express Credit Card, for example, can make life easier, allowing you to manage your finances online or even on your mobile.

This will ensure that you are able to keep an eye on your finances throughout your trip, helping you stay within your spending budget from beginning to end.

The main holiday expenses are displayed in this infographic

Whilst the infographic portrays the holiday habits of those in Northern America, it is probably fairly much the same across most western nations.

Source: FastLoanTree.com