Yahoo Finance 9 Mistakes New Millionaires Make When They Travel
Maybe you just came into a lot of money through the sale of your shoestringed start-up business. Or maybe you’ve saved for most of your adult life and your investments are paying off in today’s market.
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Whatever the reason, if you recently came into money, you might be excited to indulge in travel adventures with your newfound wealth. But before you embark on your dream trip, take note so that you don’t make some of these common mistakes.
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Not Budgeting for Your Trip
Funds may seem limitless if you’ve just come into a lot of money. But you should still start your trip with a budget and a plan, according to Patti Clement Executive Vice President, HUB Private Client.
“Because it’s newfound money, many still don’t understand the risks,” she told GOBankingRates in an exclusive interview. “They’re looking for luxury accommodations and fine dining and forgetting about a budget. That can get them into trouble. If they keep spending like that, they won’t have their money for long.”
Not Alerting Your Bank
Similarly, if you plan to spend outside your normal habits, as well as outside your region or in another country, alert your credit card companies and your bank.
“They have to make sure the bank and credit card companies know where they’re going,” Clement pointed out.
Otherwise, it can result in an embarrassing moment when your card is declined, even if you have plenty of funds available.
Wearing Pricey Clothes and Jewelry
While you’re away from home, it’s important not to flaunt your wealth, as that could make you a target for theft or kidnapping. Clements warned against carrying expensive designer bags or wearing fancy jewelry in U.S. cities or abroad.
“New millionaire travelers need to understand that with money comes a need for a little bit more awareness. You’re high profile now,” Clement said.
Not Understanding Local Cultures
Often, studying local cultural norms can help you blend in.
“You have to make sure you’re armed with a lot of information about the places you’re visiting,” Clement said.
Understand local laws, as well as cultural traditions, to blend in and make yourself less of a target. This can also enhance your travel experience, Clement said.
“Rather than just staying in a fancy hotel, take time to explore the history behind the country you’re visiting. You’ll have far more of an experience if you explore the actual everyday life of the culture.”
Keeping Expensive Jewelry in Your Hotel Room Safe
If you decide to bring heirloom quality jewelry on a trip, don’t leave it in the safe in your hotel room, Clement said. “Some insurance companies require you to have it in the hotel’s main safe so that they know it’s completely guarded,” she said.
The best place for your jewelry is in your home, in a safe that’s not stored in the master bedroom, she said. “Burglars go through the master bedroom first,” she advised.
Not Having Kidnap and Ransom Coverage
Kidnap & Ransom insurance coverage is an important component to traveling as a high-net worth individual, Clement said. But more than that, work with travel advisors to ensure you have a plan for any contingency.
“A lot of insurance policies can cover a medical emergency and even political evacuation,” Clement explained. “If there’s a conflict or a crisis in the country you’re in, you want to make sure you have a plan. Have the proper measures in place so that if there’s 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’re getting. You may want cancellation protection if you have to delay a vacation due to illness or even a work emergency.
“If you take out travel insurance, make sure you understand what that travel insurance is covering,” Clement said.
Not Securing Your Home
Before you leave, ensure your homeowners’ insurance has riders for any jewelry, collections, or alternative investments such as fine arts, that you may have in your home. Having home security alarms that connect to a central station is crucial, but don’t rely exclusively on technology to keep your house safe.
“Have somebody check on your home when you’re not there,” Clement suggested, even pointing out that you can notify the police and ask them to patrol the house occasionally.
She added, “If people are going away for a long period of time, I would suggest they have an automatic water shut-off; if there’s any type of leak, it will shut the main water line off.”
Sharing Your Adventures on Social Media
Finally, while you should let a few close friends and maybe even local police know you’re leaving town, don’t tell the general public. “Make sure that your profile is low-key when you’re going away,” Clement said. “Don’t advertise on social media and tell everybody where you’re going, because then you become a target.”
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This article originally appeared on GOBankingRates.com: 9 Mistakes New Millionaires Make When They Travel
