Maybe you just made a lot of money selling your startup business on a very small budget. Or maybe he’s saved for most of his adult life and his investments are paying off in today’s market.
Whatever the reason, if you recently gained money, you may be excited to enjoy travel adventures with your new wealth. But before you embark on the trip of your dreams, take note to avoid making some of these common mistakes.
Don’t budget for your trip
The funds may seem unlimited if you have just won a lot of money. But you should still start your journey with a budget and a plan, according to Patti Clement, executive vice president of Hub International.
“Because this is newly discovered money, many still don’t understand the risks,” he told GOBankingRates in an exclusive interview. “They look for luxury accommodation and good food and forget about the budget. That can cause problems for them. If they keep spending like this, they won’t have their money for long.”
Don’t alert your bank
Likewise, if you plan to spend outside of your usual habits, such as outside your region or at another company, notify your credit card companies and your bank.
“They have to make sure the banks and credit card companies know where they’re going,” Clement said.
Otherwise, it can result in an embarrassing moment when your card is declined, even if you have plenty of funds available.
Wearing expensive clothes and jewelry
While you are away from home, it is important not to flaunt your wealth, as this could make you a target for robbery or kidnapping. Clements warned against carrying expensive designer handbags or wearing luxurious jewelry in cities in the United States or abroad.
“New millionaire travelers need to understand that with money comes the need for a little more awareness. You’re high profile now,” Clement said.
Not understanding local cultures
Often, studying local cultural norms can help you blend in.
“You want to make sure you have a lot of information about the places you’re visiting,” Clement said.
Understand local laws, as well as cultural traditions, to blend in and become less of a target. This can also improve your travel experience, Clement said.
“Instead of just staying in a fancy hotel, take the time to explore the history behind the country you’re visiting. You will have much more experience if you explore the real daily life of the culture.”
Keep expensive jewelry safe in your hotel room
If you decide to take traditional-quality jewelry on a trip, don’t leave it in the safe in your hotel room, Clement said. “Some insurance companies require that you have it in the hotel’s main safe so you know it’s fully guarded,” he said.
The best place for your jewelry is in your home, in a safe that’s not stored in the master bedroom, she said. “Thieves go through the master bedroom first,” she advised.
Not having kidnapping and ransom coverage
Kidnapping and ransom insurance coverage is an important component of traveling as a high-net-worth individual, Clement said. But more than that, work with travel advisors to make sure you have a plan for any contingencies.
“Many insurance policies can cover a medical emergency and even a political evacuation,” Clement explained. “If there is a conflict or crisis in the country you are in, you need to make sure you have a plan. “Have the right measures in place so that if there is a situation, you can get out or get to safety without panic.”
Not understanding your travel insurance policy
Travel insurance can cover many contingencies, but be sure to read the fine print so you know exactly what you’ll get. You may want cancellation protection if you have to delay your vacation due to illness or even a work emergency.
“If you purchase travel insurance, make sure you understand what that travel insurance covers,” Clement said.
Not insuring your home
Before you leave, make sure your homeowners insurance has riders for any jewelry, collections, or alternative investments, such as fine art, you may have in your home. Having home security alarms that connect to a central station is essential, but don’t rely solely on technology to keep your home safe.
“Ask someone to check your house when you’re not there,” Clement suggested, even noting that you can notify the police and ask them to patrol the house from time to time.
He added: “If people are going to be away for a long period of time, I would suggest they have an automatic water shut-off; “If there is any kind of leak, it will shut off the main water line.”
Sharing your adventures on social networks
Finally, while you should inform a few close friends and maybe even the local police that you’re leaving town, don’t tell the general public. “Make sure your profile is discreet when you leave,” Clement said. “Don’t advertise on social media or tell everyone where you’re going, because then you’ll become a target.”
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