Introduction
Travelling can be an enriching and exciting experience, but it’s also important to prepare for the unexpected. Financial emergencies can happen while you’re abroad, ranging from missed flights to lost luggage and medical emergencies. Being financially prepared for such situations is crucial to ensure your safety and peace of mind during your journey. In this post, multipl will discuss the importance of financial preparedness during travel and offer advice on setting up an emergency fund and having quick access to financial resources when abroad.
The Importance of Financial Preparedness
Unforeseen Expenses
Travelling exposes you to unforeseen expenses, such as unexpected medical bills, stolen belongings, flight cancellations, etc. These situations can turn a dream vacation into a nightmare without adequate financial preparation.
Limited Access to Funds
While abroad, you may not have immediate access to your regular financial resources because debit cards may not always work or currency exchange rates can fluctuate. Therefore, it’s important to have alternative means of financial support.
Peace of Mind
When you are financially prepared, you can enjoy your trip without constantly worrying about financial problems. Knowing that you have a safety net can greatly enhance your travel experience.
How multipl Helps You Create an Emergency Fund
multipl is the world’s first “Save Now, Buy Later” app, which helps you spend through goal-based investments. Let’s see how multipl can help you build your emergency fund.
Goal-Based Savings
To create an emergency fund, you must first calculate the total budget for your trip. Your emergency fund should cover at least 10-20% of your total budget.
Now that you know how much you need to save, multipl selects appropriate mutual funds that align with your emergency fund goal, time horizon, and risk tolerance.
Auto-investing
Using multipl, you can automate your SIP investments for your emergency fund. Therefore, you can consistently save money without having to remember to do so manually. This disciplined approach makes it easier to build your emergency fund.
Risk Management
When creating an emergency fund, it’s important to balance liquidity and returns. multipl is based on the Safety, Liquidity, and Returns (SLR) framework to ensure the safety of your capital, liquidity of investments, and deliver risk-adjusted returns.
No Hidden Charges
When setting up your emergency fund with multipl, rest assured that there are no hidden charges. Similarly, when you decide to redeem it, you can do so with a brand voucher or receive the full amount and market returns in your bank account. However, the funds you invest in may have their own associated charges. You can easily find details on fund-specific expense ratios and other applicable charges right on the allocation screen.
Accessing Quick Financial Resources Abroad
Inform Your Bank
Before travelling, inform your bank of your itinerary. This prevents them from flagging your international transactions as suspicious and potentially freezing your accounts.
Local Currency
Carry some cash in the local currency before starting your travel or exchange at a local bank upon arrival. Having local currency on hand is crucial for small expenses like transportation or food when you first arrive.
Emergency Contacts
Keep a list of emergency contacts, including your bank’s customer service number and the local embassy or consulate, in case you need assistance with financial matters.
Travel Insurance
Invest in international travel insurance that includes coverage for medical emergencies, trip cancellations, lost belongings, etc. This will reduce financial stress during emergencies.
Mobile Banking Apps
Download your bank’s mobile app to access your accounts and perform transactions while abroad. Check if your bank offers mobile check deposit services for quick access to funds.
Final Words
Financial preparedness is a critical aspect of safe and enjoyable travel. By setting up an emergency fund, you can mitigate financial risks and handle emergencies more effectively while abroad. Remember that being prepared not only enhances your safety but also allows you to focus on the adventure and enjoyment of your journey.
