With these 3 measures you can make your finances fit for the holidays! • WorldSave
Would you like to start the holiday season without worrying about your finances? Then take the following 3 measures for your travel budget before you leave:
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1. Take enough cash with you!
Avoid unpleasant surprises at your holiday destination: Make sure you have enough money available at all times! Cash is trumps – but don’t take your entire holiday fund with you. 150 euros (or in the corresponding foreign currency) have been established as a guideline for the taxi ride to the hotel and for small purchases on the first day of vacation.
Set a budget beforehand and start saving towards your goal in good time. With a financial plan that also takes vacation time into account, you ensure that you don’t have to worry about your travel budget during vacation time.
Withdraw money abroad
You can then use an EC or credit card to withdraw the required amount in local currency from an ATM in the holiday destination. On-site ATM withdrawals have proven to be easiest and cheapest way turned out to stock up on local currency abroad.
There are around 3.8 million ATMs worldwide. In remote areas, however, it is helpful to find out about the availability of banks and ATMs before you arrive.
Exchange money on site
Are you carrying a large amount of cash with you to exchange at your holiday destination? Then keep an eye out for a reputable exchange office or a bank on site – avoid exchange offices at the airport or dubious offers at the holiday destination. There you usually get unfavorable exchange rates. In order to avoid discrepancies, a simple currency converter on the Internet can help you find your way around.
And of course: Protect yourself against theft! Therefore, do not transport your cash and valuables in just one place, in a single purse or handbag.
Cashing traveller’s cheques
Carrying traveler’s checks as a means of payment is an advantage in far-flung countries outside of Europe. You are insured against theft and loss and travelers checks are widely accepted. Banks, however, charge a small fee when cashing travelers cheques. Travelers should also order the checks from their bank in good time.
2. Bet on “plastic money” too.
With a credit card, you can easily finance a more expensive souvenir or a larger purchase and, if necessary, withdraw cash at low cost. To be on the safe side, you should also various credit and debit cards carry with them. Visa and MasterCard are the two most common payment providers for credit cards: if you have both on hand, you can pay your bills almost anywhere. Debit cards with the Maestro symbol are also accepted as a means of payment almost everywhere, while cards with the V Pay symbol are mainly accepted in Europe. However, fees may arise on the credit card statement for use.
Simply pay with your smartphone
Fintechs and other providers such as Apple Pay or Google Pay make it possible: In many supermarkets, shops and restaurants you can already easily pay cashless with your smartphone. This can be especially helpful if you ever lost your wallet with all your bank and credit cards. In order to use Apple Pay and Google Pay, however, it is necessary to enter credit card or bank details via the app. GooglePay also allows the account to be linked to the PayPal account. The direct debit then appears on the checking account like a normal direct debit. In some regions you no longer have to carry your wallet with you if you can pay cashless with your smartphone.
90% of all vacationers pay for their trip with PayPal
Even without Google Pay, users can make cashless payments worldwide over 22 million merchants pay with PayPal. Almost 9 out of 10 (87%) of all PayPal customers use the service to finance their trips, eg in advance Airbnb. In addition to Germany, PayPal is particularly widespread as a means of payment in the USA, France and Great Britain.
3. Don’t leave savings in your checking account without interest
Have you worked hard over the past twelve months and saved a not inconsiderable part of your salary? then prepare in time for the next vacation. Just let your money “work for you” while you enjoy your well-deserved downtime. Invest your savings, for example, in overnight or time deposits and benefit from higher interest rates!
Higher interest rates in other European countries
Because while German banks give an average interest rate of just 0.03% pa, you can get far more in other European countries. You will receive this via WeltSparen up to 40 times higher interest rates than at your house bank. WeltSparen offers you the opportunity to invest your money conveniently, easily and, above all, securely throughout Europe – secured by the EU-wide harmonized deposit guarantee system up to EUR 100,000 per customer and bank.
When it comes to the amount of money in a checking account, there is good advice: as much money as necessary, as little as possible! A rule of thumb: 3 net monthly salaries are sufficient usually as a liquidity reserve to be able to bear unforeseen costs. Anything above that could also earn attractive interest. The best thing to do now is to compare our offers at a glance:
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Invest globally diversified and cost-effectively
Flying to Mallorca every year for 2 weeks gets boring at some point. How about a 3 month vacation in the Maldives instead? Or would you prefer a trip around the world?
Larger and longer travel projects are much more expensive. In addition to overnight and fixed-term deposits, according to Finanztip, it makes sense invest part of the savingsin order to secure a higher return potential.
“The Finanztip basic recommendation is to invest part of the money in cheap, broad-based equity index funds (ETFs) over the long term and – depending on risk tolerance – another part in fixed-term deposits or call money in order to somewhat absorb fluctuations in the stock market.”
Anyone with an investment horizon of at least 5 years could tackle such a project with regular investments in the global financial markets. It is important to pay attention to the investment costs. With the ETF Robo savings plan, you have access to a broadly diversified ETF portfolio from as little as 0.33% pa at fund level.
Set up a savings plan now
This is how you make your finances fit for the next holiday in good time.
