When Vacations Go Wrong: 5 Costly Travel Mistakes & How to Avoid Them

Angie Glass | Jun 16, 2023

How do you get ready for a trip?

What travel habits do you rely on to get around, stay safe, and still have fun?

Whether you’re going across town, across the country, or to the other side of the world, what you do before you take off — and what you know while you travel — can help you avoid some risky, wallet-draining mistakes.

It can take some of the stress out of traveling. That can mean getting more enjoyment out of every trip, even if things don’t go as planned.

To help you get the most out of any vacation, here are some common, costly mistakes travelers tend to make and simple tips for avoiding them.

5 Traveler Mistakes to Avoid on Any Trip

You can’t control everything when you travel. But you can control what you know, how you get ready to get away, and what you do while you’re vacationing.

And if you know these common travel mistakes, you’ll be much better prepared to get away and make it a truly great experience.

Travel Mistake #1: Bypassing travel insurance.

Traveling is risky, and anything from the weather to flight cancellations, lost bags, and illness can interfere with a smooth trip. Without travel insurance, you could be left covering the costs of any mishaps or losses out of pocket. That could mean shelling out hundreds to thousands of dollars (or more) if you suffer a medical emergency on vacation, for instance.

Keep in mind that travel insurance is available for single trips and 365-day coverage for more frequent travelers — and that travel insurance tends to be affordable and relatively low cost when compared with other coverages.

Tip: Get travel insurance when you’re booking your vacation plans. Be sure to ask about any exclusions so you’re fully aware of what your coverage does (and doesn’t) include and so you can get add-on coverage if needed.

Travel Mistake #2: Not anticipating flight delays.

Unfortunately, about 1 in 4 flights operated by the major airlines these days is delayed for some reason.1

That could cause you A LOT of headaches and hassle on your next trip if:

You have a connecting flight, and you didn’t schedule enough time between flights.
You didn’t get travel insurance, and your tickets are nonrefundable.
You need to arrive at some destination at a specific time, like for an event that day or the next.

If you’re caught up in flight delays and/or cancellations, you could find yourself stranded in a connecting city, footing the bill to stay next to the airport until you can fly out. Worse yet, you could miss out on some of the fun you had planned for the beginning of your journey!

Tip: If you’re flying, try to add a “buffer” day for your flight travels, ideally one day extra for flying out and another day for flying back, just in case something unexpected happens and your flight is canceled (or extremely delayed). Also, avoid scheduling connecting flights within an hour or so of previous flights. Try to give yourself enough time to make connections, especially if you have to travel across larger airports and/or if your first flight is delayed for any reason.

Travel Mistake #3: Failing to pack smart.

Smart packing doesn’t mean packing everything. It means:

Only bring what you really need: What items will be at your destination (like robes or hairdryers)? Will there be laundering services available (so you can wash clothing)? Are there any baggage weight limits you need to consider? Thinking about these issues ahead of time can help you cut out the extras and pack them wisely.
Accounting for the key factors: What’s the weather like where you’re going? What are you going to do while you’re away? How long are you going to stay? Will you need to bring electrical outlet adapters (if you’re traveling to Europe)? The answers to these questions can help you pack smarter too.

If you overpack, you could be charged extra fees for overweight bags if you’re flying. You could also end up being more miserable on the trip if:

You have to lug around all your heavy baggage by yourself.
You lose items because you can’t keep track of everything (because there’s just too much stuff!).
Your bags or personal items are stolen because a thief offered to “carry” a bag for you.
You end up getting hurt because your baggage is too heavy.

Tip: Don’t pack at the last minute. Try to pack at least a day or two in advance. Think about what you have to carry around and what help may or may not have with your baggage while you travel.

Travel Mistake #4: Taking zero precautions against theft.

Tourists can be easy marks for pickpockets, scammers, and other fraudsters. So, if you look out of place and you’re not on guard, you could be their next target. You could also be vulnerable to travel theft if:

You don’t know where you’re going.
You don’t carry your money carefully or securely.
You’re wearing tons of jewelry, designer duds, or super flashy gear.

Tip: Keep a low profile when you’re traveling. Avoid carrying around a lot of cash at any given time. And stay alert to your surroundings, especially in known tourist areas which can be hotspots for thieves.

Travel Mistake #5: Paying for rental car insurance.

If you’re renting a vehicle at any point on your trip, you could be covered through your own auto insurance provider already — and even if you aren’t, buying rental car insurance through the rental car company is usually the most expensive option available.

Tip: Check your auto insurance coverage before your trip to see if it covers you in rental cars. If it doesn’t, shop around for rental coverage before you travel. Avoid getting this coverage through rental car companies whenever possible.

Better Plans & More Knowledge Can Help You Avoid Mistakes in Travel & Finance

With travel mistakes and their consequences, the more you know, the better. After all, you can’t manage risks you’re not aware of, and you can’t make the best choices if you can’t see the entire picture. Plus, the risks and uncertainties that can pop up with travel can change — and visiting one place may not present the same risks as vacationing in another.

That’s where your knowledge can help, regardless of whether you’re planning travel or focusing on your financial life. So can a trusted partner who can share insight and advice. So, if you’re facing uncertainty, risks, or questions about any aspect of finance, remember you don’t have to figure it out by yourself. You can turn to a financial professional for answers, support, and guidance.

Sources:

1. https://www.travelandleisure.com/most-delayed-airlines-2021-2022-6814429

This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2024 Advisor Websites.

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Let's Move Some Money!

By David Ashby • May 20, 2025

“Let’s move some money!” Some years back I was visiting with a friend as we watched our kids during a ballgame. He related to me how his visits would usually go with his financial advisor. He’d go in for his annual review and often would express disappointment at the performance of his account. He thought he would have done better the previous year based on news reports and such. I’ll never forget the reply given by the advisor in response to his disappointment: She’d say “Well, let’s move some money!” This phrase, he said, would tend to lift his spirits, at least a bit. Give him a bit of temporary optimism. Well at least, he would think to himself, she’s going to do something productive for my portfolio! The tendency to act is often comforting to investors. I’ve heard clients remark “my guy must be doing me some good- he sure trades my account a lot!”. It feels reassuring that they’re looking out for you, doesn’t it? Well, back to that statement “let’s move some money”. An obvious question to ask would be “are you going to put me into a better set of investments than I am in now?” If the answer is “No”, then why move money around at all? And if the answer is “yes”, then why don’t you have me in that portfolio already? Moving money around, or trading, often does benefit at least one party to the transaction; the advisor or broker. Suppose the broker spent the previous weekend at a golf tournament sponsored by the XYZ Investment Company, all expenses paid. Now my friend walks into the broker Monday morning and expresses concern over his investments. The “let’s move some money” notion kicks into high gear. And guess where it’s likely moving to? The XYZ fund is top of mind for the broker. There are certainly valid reasons for trading in a portfolio. For folks in retirement living off their investments, trades must be made to keep the cash coming. For savers making systematic deposits, trades must be made to invest the cash coming in. As different sectors of the market ebb and flow, trades may need to be made to keep the portfolio in balance. But moving money around to implement a different investment strategy is more likely to be harmful than helpful. You would probably accept the “buy low and sell high” axiom of investment advice. It sounds simple enough. But execution is another matter. When stocks fall, we get fearful and are inclined to sell out. When a stock (or a market) has done well recently, we get euphoric and are tempted to buy in. Both actions are in direct contrast to the “buy low sell high” strategy. If you’ve made this mistake in the past, don’t feel bad. The pros do the same thing. They get it wrong more often than they get it right! Your takeaway here: there are valid reasons to trade in a portfolio. But don’t fall for that “let’s move some money“ trick to make you feel better in the short run. Have an investment plan that you are comfortable with and stick with it! All content on this page is for informational purposes only. Opinions expressed herein are solely those of Mustard Seed and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your financial advisor prior to implementation period. Content should not be regarded as a complete analysis of the subjects discussed.

Stay In Your Seat

By David Ashby • May 15, 2025

May 15, 2025 You’ve heard some rumblings that we’re in danger of falling into a recession. Comments on this issue are coming from legitimate financial professionals. These comments stem for the most part due to the current trade war the U.S. initiated against most of the rest of the world. And first quarter numbers just released show the economy shrinking, not growing. There’s reason to believe we’re headed for an economic slowdown. The tariff on Chinese goods (with some exceptions) as I write this is 145 percent. China, in retaliation, has imposed a 125 percent tariff on U.S. goods. This has significantly reduced trade between the two countries. The number of containers arriving on the west coast is down by some estimates, as much as 40 percent! Retail executives from Wal Mart, Target and Home Depot recently warned Trump to expect significant price increases and empty shelves shortly. So, given all that, what to do with my investments? You might be tempted to run for cover. In other words, just sell off my stock investments and convert over to cash until all this blows over. Sounds easy enough, right? Wrong! DON’T DO IT!. Let me explain. It’s true that stocks may suffer a decline in a recession. But we’ve already seen a significant decline in the markets. The Dow went over 45,000 in December. It’s currently at around 41,000, a decline of roughly 10 percent. The Nasdaq decline is even worse, off roughly 15 percent from its recent high. If you bail out now, you’re selling at significant discounts. But it could go even lower, you argue. Yep, it could. But if you cash out, you then have the issue of when to get back in. Recently, Trump put a 90-day pause on implementing tariffs. The market soared, with the Dow up over 2,000 points that day. If you were sitting on the sidelines in cash, you didn’t participate in that gain. To follow through on that, the next day the markets were down, giving back much of the previous day’s gain. But research shows that missing only a few of the big market days can have a significant impact on long run returns. A couple of things to remember during this volatile period: first, market gains, as well as drops, often occur rapidly. You’ve got to be out on the playing field to score, not sitting on the bench. Second, after market corrections occur, markets historically go on to higher levels 100 percent of the time. Those are excellent odds. Finally, make sure your allocation to stocks is consistent with your ability to tolerate market risk. If you can’t sleep over worrying about your stocks, maybe you should shift some funds over to bonds. But don’t completely abandon the stock market; it’s your best hedge against inflation over time. And the experts are telling us to expect higher prices!

Tale of Two Economies

April 22, 2025

July 2024 “It was the best of times, it was the worst of times...”. You might recognize that as the opening line in Charles Dicken’s classic A Tale of Two Cities. That phrase might well apply to the U.S. economy. Despite relatively strong economic numbers, polling in the U.S. consistently shows consumers are dissatisfied with the American economy. Only one in five Americans feels that the economy is doing well. There are likely several contributing factors to this. First, some media outlets consistently paint a dismal economic picture. If we heard it on the news, it must be true, right? Second, a major factor in dissatisfaction is the inflation shock we experienced the last couple of years. From the Great Recession year of 2008 through 2020 (the onset of Covid), U.S. inflation averaged just 1.7 percent per year. In 2021, prices shot up by 7.0 percent, more than triple the previous 13-year average. That inflation continued in 2022 at 6.5%. Inflation certainly has slowed, currently running just over three percent. Consumers may misinterpret this as prices should start falling. For example, assume a $5 jar of peanut butter pre-pandemic now costs $8. A lower inflation rate doesn’t mean peanut butter is going back to $5. It’s likely stuck at $8! The relatively long period of mild inflation, combined with a shorter period of rapid price increases, has led to consumer frustration. Real wages (wage increases over and above the inflation rate) have actually increased the last few years. But they haven’t increased for everyone, and many families feel left behind. Hence, the high level of consumer dissatisfaction regularly being measured in polls. The facts on three key measures of the American economy are as follows: GDP: GDP grew at a rate of 2.5% for 2023 and continued growing in first quarter of 2024 at a rate of 1.4%. Inflation rate: as mentioned, currently at around three percent. The Federal Reserve’s targeted rate is in the two percent range. Unemployment rate: currently at 4.0 percent, near an all-time historical low. Jobs are readily available in many areas. If we had to pick perfect economic numbers, we’d suggest GDP back to 2.5, inflation at 2.0, and we’re fine with unemployment at 4.0. The actual numbers aren’t that far off! In his book The Psychology of Money, financial writer Morgan Housel sums it up: Nothing is ever as bad or as good as it seems! Please feel free to contact us for any questions you may have concerning the enclosed reports or other financial matters. We appreciate the opportunity to serve you!

Tariffs: friend or foe?

April 22, 2025

April 2025 Given the business headlines for the first quarter, you may be hesitant to review the enclosed reports on your portfolio. Certain segments of the U.S. stock market experienced significant declines for sure. But those declines were offset to some extent by gains in other markets. Chief among them were gains in foreign stock markets. This includes foreign developed markets as well as emerging markets. Most fixed income segments had positive returns as well. As we write this letter, markets are digesting the news of the tariffs announced by the Trump administration on April 2. The announcement regarding new tariffs on U.S. imports has understandably stirred some waves in the markets, with a notable sell-off reflecting initial uncertainty. This move, aimed at giving American manufacturing a shot in the arm and bringing jobs back home, is a big step. It’s not surprising for volatility to follow as the world adjusts. Despite the uncertainty, markets have a way of riding out storms like these, whether it’s a new policy, a global event, or something else entirely. We’ve seen this before, and markets tend to settle down and adjust with time. Rest assured, we’re here to guide you through this stretch with care and confidence.

January Newsletter

April 22, 2025

January 2025 The year 2024 saw healthy returns overall in the market, despite finishing the year with a whimper. For example, international equity markets, both developed and emerging, saw declines of eight percent plus in Q4. The U.S. bond market declined more than three percent in the same period. Several other sectors saw less severe declines. The notable exception was U.S. growth stocks which continued strong performance into Q4. Going into Q4, we faced the uncertainties of a close election as well as future actions by the Federal Reserve. As expected, the Fed followed through on three rate cuts in 2024. However, coinciding with the third cut on December 18, Fed chairman Jerome Powell indicated the pace of future rate cuts was likely to slow from earlier expectations. This was somewhat unnerving to investors banking on aggressive rate cutting in 2025. Ironically, a reason for slowing rate cuts, as outlined by Powell, is the overall health of the U.S. economy. Inflation has moderated, employment is strong, and the economy is growing. (A notable exception here is the housing market, where 30-year mortgages remain around seven percent.) It’s a case of good news (a healthy economy) being bad news (a slower pace of rate reductions). New year, new faces We’re happy to announce the addition of two new team members. Ayden Sharp is a December graduate in finance from Southern Arkansas University. Ayden, originally from Leander, Texas, and his wife Christan, reside in Magnolia and he will work out of the Magnolia office. Kirk Reardon is our new advisor in the Texarkana office, located at 5329 Summerhill Road. Kirk and his wife Shannon, reside in Wake Village, TX, and are the proud parents of two sons, Holden and Cooper. We’re excited to welcome both to our Mustard Seed team. Also, some not so new faces! We recently celebrated the 20-year anniversaries of two of our senior financial advisors. Angie Glass is a Chartered Retirement Plan Specialist in the Magnolia office. Bruce Butterfield is a Certified Financial Planner in the El Dorado office. Angie and Bruce began their careers at Mustard Seed in 2004 as part- time employees. Both have distinguished themselves with a strong base of long-term clients and in- depth knowledge of a broad range of financial issues. Congratulations Angie and Bruce! A note about texting Mustard Seed is required to archive all written communication with clients. This requires us to use a special program for texting. Many of our clients are already using this alternative texting and we will attempt to convert the rest in the first quarter of 2025. We’ve enclosed a flyer with more information on this.

Fact Checked

April 22, 2025

October 2024 The long-awaited and much debated interest rate cut finally happened. The Federal Reserve had announced earlier this year the aggressive rate increases of 2022 and 2023 had done their job in slowing inflation. (The latest inflation numbers came in at 2.5 percent, close to the Fed target of two percent.) The Fed had further indicated rate cuts were now on the horizon. Perhaps the only surprise in the September announcement was the size of the rate cut at 50 basis points, or one-half of a percent. We’re already seeing the results of this rate cuƫng environment. A 30-year home mortgage is now around six percent, down from 7.8 percent a year ago. Good news for home buyers. But one person’s gain is another person’s loss. Savers who recently collected a 5.5 percent interest rate on short-term Treasury bills now see that rate down to four percent. On balance, however, a declining rate environment should be positive for the economy overall. No doubt the election is on the minds of many. How could it not be given the barrage of coverage! We briefly addressed this in our April newsletter. But a quick reminder: Over the last 100 years, we’ve had 27 presidential administrations, 14 Democrat and 13 Republican. Stock market returns have been positive in 23 of 27 periods. Of the four losing periods, two were Democrat and two Republican. Your takeaway: the market has historically fared well regardless of what party is in the White House! Don’t adjust your long-term financial game plan because of an impending election. Texting with Mustard Seed It is crucial for us to stay connected with our clients. If you receive a text from (870) 626-0038, it means that a Mustard Seed associate is reaching out to you. In order to initiate a chat with them, please respond with a YES. Please be aware that all written communications must be archived according to our compliance regulations. Therefore, our associates are not allowed to send business-related information through their personal cell phones. To text your advisor, please use (870) 626-0038. Please contact us for any questions concerning the enclosed reports or other financial matters. We appreciate the opportunity to serve you! Your Mustard Seed Team