Your money: 4 tips for traveling abroad

Despite the devaluation of the peso and the economic fragility of the country, the truth is that there are many Argentines who are vacationing abroad these days or who plan to cross the borders in the coming days, weeks or months.

For this reason, in the column today we will provide 4 financial tips so you can enjoy the trip to the fullestwithout the obstacles imposed by the Government becoming a headache.

Let’s get started!

With few exceptions, the trips do not start the moment the plane takes off, but at least a couple of weeks before, when we draw up the financial plan.

What does this plan consist of? Basically, in calculating the money we intend to spend. This is a number that we must always keep in mind so that temptations do not unbalance our budget, since -as we will see later- many people resort to quick access to ATMs or simply check if they have money deposited in a savings account to take on a new spending without measuring the consequences.

Meals, excursions, transfers, purchases… The budget must include these items and others that occur to us. In addition, 10% must be added to the result for unplanned expenses.

The next step to optimize expenses is to divide the total budget by the number of vacation days. This way we can establish daily limits and not reach the end of the trip with the rope around our neck.

A saving strategy that is gaining more and more followers is to change the old habit of staying in a hotel for that of rent an apartment through digital platforms.

The savings in this case are double: the chosen place is not only usually cheaper and more spacious than a hotel room, but it also enables the possibility of buying food in supermarkets and cooking, since the vast majority of apartments for rent They have all the necessary equipment for us to handle ourselves at home.

The difference in expenses between going to the supermarket and having breakfast, lunch or dinner outside can easily reach 200%, especially when it comes to large families where 7 out of every 10 dollars spent on the trip goes on food.

Should I spend in cash or with a debit/credit card? This million dollar question has a very simple answer: with a card.

This is so because, even with the recent 10% increase in taxes applied to the tourist dollar (the one used for card expenses), the gap with the free, blue or illegal dollar (depending on who is looking at it) continues to be high. The dollar loaded with taxes is cheaper than the version that is obtained outside the official square.

The second question that arises here is whether to use a credit or debit card. The answer It will depend on the expectation of devaluation that each one has, since, when we spend with debit, we are charged the peso/dollar exchange rate that governs at the time of purchase, while in credit card expenses the calculation is will do at the expiration of the billing cycle.

The truth is that, in an Argentina where the devaluation of the peso usually gives many more negative than positive surprises, with sudden jumps in the dollar, common sense tells us that any cautious person should prioritize closing the calculation as soon as possible so as not to be exposed to a devaluation that may end up making the product or service purchased outside the country considerably more expensive.

Taxes from those countries are usually included in the price we pay for goods or services purchased abroad, which we can often recover through an administrative procedure at the airport of the place visited.

It should be clarified that not all countries offer returns and, in the case of adhering countries, not all businesses are included in the taxes devolution.

At this point, the recommendation is to ask directly in the place where you want to buy something or look for a sticker that says tax free.

To get the tax refund one you must request the invoice for taxes devolution on trade. Then you must present it at the airport before taking the flight back or out of that country to another destination.

Although it is not common, they may ask us to show the purchased merchandise, so it is convenient to do this procedure before dispatching the luggage.

Namely: in high season the process can take about two hours.

The percentage to recover varies according to the country. In Germany they offer returns of 19% and in Italy, 23%. In the US it varies depending on each state.

The countries that have taxes devolution son Germany, Denmark, Spain, United States, France, Greece, Holland, England, Israel, Italy, Japan, Mexico, Poland, Portugal, Thailand, Uruguay, Vietnam, Australia, Austria, Belgium, Cyprus, Croatia, Slovenia, Slovakia, Finland Czech Republic, Hungary, Iceland, Indonesia, Ireland, Korea, Lithuania, Luxembourg, Malaysia, Morocco, Norway, Romania, Singapore, South Africa, Switzerland, Sweden, Taiwan and Turkey.

Yes, I know, vacations are a time of relaxation and recreation where nobody wants to be too aware of issues like the ones we review here.

Nevertheless, relaxing too much about money matters can lead to unnecessary headaches on the way back. They are neglects that usually pay very dearly.

The tips in this column will allow you to enjoy responsibly and smoothly. Also, repeat the travel experience earlier than expected. Remember that summer is still missing and you will want to rest to face 2023 in the best way.

If you are one of the lucky people who will soon cross the borders, I wish you a very good trip and I invite you to continue reading this column from wherever you are.

Until next week!

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