The world is packed full of unique landscapes, diverse cultures, and original personalities. Yet no matter where you go, one thing stays the same: money makes the world go round. Those deciding to set off on a globetrotting adventure know the experience doesn’t come cheap, however, it takes more than a savings account to cover all the financial corners associated with world travel.
Before putting overseas travel plans into action, take the time to get familiar with the following financial concepts every world traveler needs to know about:
What makes cryptocurrency like Bitcoin and Altcoin important to world travelers is the universal nature of this form of payment. No other currency has the same potential for buying power when factoring access and security on a global scale. Understanding bitcoins and altcoins start with learning about the mining process. This review of Genesis Mining breaks it down pretty smoothly. In short, it’s how bitcoin transactions are processed and tracked. It decentralizes the duties traditionally fulfilled by banking institutions. These include security and record keeping, allowing payments to occur without an intermediary. Ultimately, mining is how cryptocurrency maintains value.
Credit card companies really want us to use our credit cards. Makes sense, but many cardholders fail to take advantage of the rewards these companies offer as incentives to spend through them. They spend with cards without getting the rewards. If you’re traveling, this is a major unforced error. Get a card with miles rewards or other perks useful for travel and use that to do the monthly spending. The points add up faster than most folks think. The result is potentially hundreds shaved off the cost of a trip.
It’s a no-brainer to get a debit card and credit cards prepped for overseas travel to avoid the inconvenience of having them flagged when used abroad. However in the event one becomes separated from their cards through misplacement or theft while traveling overseas, having a way to get funds will quickly become the preoccupation at hand. It’s an unfortunate situation which can be partially fixed with a money transfer from back home. With this in mind, understanding how international money transfers work is important for the would-be world traveler. It can be the difference between a trip remembered for its chaos and one remembered for the scenery and culture.
Thanks to remote workforces becoming more common, it’s never been easier for professionals to work while they travel the world. However, income is taxed and figuring out who gets the tax is important when hop-scotching from country to country every few months. Americans living and working abroad are burdened with an especially complex tax process because unlike most countries, income earned while living abroad is still subject to taxation at home. So, for any Americans reading this thinking about spending a year overseas, get familiar with the IRS guidelines for taxpayers living abroad.
Planet Earth is in no short supply of diversity. However, when it comes to human culture, one universal trait is the importance of money wherever you are. It’s crucial to get a handle on the various financial concepts which may come into play during a trip overseas. Simply put, it pays to have these potential factors figured out prior to taking off. Otherwise, they may overshadow the travel experience.
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