Budget for Travel: How to factor in forex fluctuations and unexpected expenses

financialexpress.com:

Touring the world is an irresistible passion everyone has, but affordability is the key. If you plan wisely, you can explore the world without burning a hole in your pocket.

The biggest risk a foreign traveller has to face is the shortage of money during the overseas stay. It can happen anytime due to extraneous reasons like currency fluctuations and it has the potential to derail everything: from travel plans to daily spends. A careful, advance planning can effectively address this issue and make one’s journey stress-free and joyful.

As part of your trip budget, the first and foremost thing to do is to understand the economy of your destination and its currency. Calculate its current exchange rate with your domestic currency using apps or online tools. You can also analyse how the exchange rate has varied in the past against major foreign currencies. That will give you a fair understanding about the local currency, and how much money one has to reserve for the trip. More importantly, the destination should have a peaceful law and order situation as political unrest or a coup will suddenly de-stabilize the currency and the economy.

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On the basis of your homework, prepare a tentative budget and allocate sufficient money to essential expenditures such as airfare, road travel plans, food, accommodation, gifts etc. You must keep an emergency fund, too, to meet unforeseen circumstances. But try to limit the spending within the budget contours.

If your domestic currency is strong, more foreign money will reach your hand. It means you can spend more during your overseas stay. If your currency is weak, you will get only less foreign