I travel a lot and I’ve developed some strategies so that I can better manage my money while away from home and stay in budget.
I should be frank and say that I did go over budget on a couple of things during this last trip, but that’s hardly surprising because Australia and Hawaii aren’t cheap!
A couple of things that I do prior to leaving for a trip is try to pay for as many items that I can prior to departure. My goal is to minimize the number of transactions that I engage in using a debit or credit card when I’m far from home and can’t keep as close an eye as I would like on my accounts.
Set Aside Cash
If I am traveling domestically I do try to set aside a nice amount of cash to again minimize the number of times I have to withdraw cash from the ATM. I hate paying to get my own cash and even though I have a CHASE account (they have ATMs everywhere) I prefer to use cash whenever possible. This is the case wether I am traveling domestically or internationally.
Slowly Purchase Foreign Currency
If I am traveling overseas I still use the same cash policy. Please note: I have lived overseas several times so I have a very good feel for how to manage this in the foreign countries I normally go to. I would not suggest this to people who are: new to overseas travel, nervous travelers, or staying in a place where they can’t lock their belongings.
I purchase cash in the currency of the countries that I will be visiting prior to departure.
Also, at this point I am normally at my friend’s homes for a good chunk of most of my trips so my extra cash is hidden in plain site (and locked) when ever I am out of the house. Obviously I wouldn’t have these funds (or any other valuable) in checked in luggage. That would be stupid. You could also withdraw cash once you arrive in the country that you’re visiting and then exchange it so that you eliminate the risk of losing it. Obviously, if I lose the money-it’s gone!
I do usually use a designated card for transactions such as: hotel or hostel room payments, excursions, and other slightly larger expenses that I would like to keep track of.
What’s On Me
I tend to carry cash on me when I’m walking around during my trips as a lot of places are still very cash reliant and it’s not as common to use “plastic” After I ran out of cash in Australia (took almost 4 weeks!) I did use my card. The problem was that they have switched to tap technology. It caused a lot of stress to the cashiers that I worked with and I will be requesting that all of my cards be switched to tap technology.
Overall, when traveling I think it’s best to have a plan and a mix of options to fall back on in the event that your circumstances change or something comes up.
I developed my travel money strategy after a lifetime of travel AND being hit with a huge fraudulent charge for video games that happened after a ski trip to Breckenridge. Every since then I am hyper vigilant about how I use my cards when I’m traveling.
This year I’m switching to a cash only budget so I will use my debit card during my trips from one of my secondary bank accounts. This has been an interesting switch so far and I hope to have my process down before I go on my next trip abroad.
What’s Your Travel Money Process?
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My travel money process is to learn how each country operates so that I’ll well prepared. For instance in Russia you wouldn’t believe how behind they are as far as money and cash is king, even for things that would seem obvious to use a card. Iceland was brilliant. I did not take out cash…not once! They love plastic and it made tracking my expenses for write offs a breeze…plus I hate having leftover change from a country when I come home.
Somehow I am not surprised that Russia is still a cash based society. That’s good to know about Iceland as it is on my list to go to sometime in the next 3 years. I want to ride an Icelandic pony through the wilds of Iceland…then sit in a hot spring.
I tend to rely on debit/credit cards when traveling and keep a good watch on the overall spending so as not to go crazy. I am really bad about remembering to get cash before we leave on a trip. Last time we visited family in Hawaii we planned on just grabbing some cash from an ATM. But, it turned out there were no Wells Fargos on the island, so thankfully we were able to use the cards.
I am switching to a cash only budget for the next year…I am still working on how to handle travel and reservations. There might be an exception for tickets, I’m not sure. So far I haven’t used credit for the past week. So, we’ll see how that goes. Obviously I will keep you guys posted!!
I always withdraw from an ATM, cash in country. It’s easiest (except in Japan where you can only withdraw at Seven 11!) For the US, I have a travel card with cash loaded. In Europe, I load up my European bank account/card. Elsewhere, I work with cash from ATMs (Dubai, New Caledonia, Japan, Morocco).
You have the least competitive exchange rate for foreign currency in your home country (ie USD to anything bought in US is less competitive). Anyhow…
I also have two credit cards. One I use almost solely for travelling, as you previously could forward load it, and then withdraw ‘cash advance’ with no fees, and the card still offers no foreign transaction fees like most credit cards. So that’s my preference when it’s a bigger purchase (lots of clothes in one transaction, hotels etc).
I have a bank card from one bank that still doesn’t use Tap technology here in Australia, but the shared account card with my partner does. Doesn’t worry me as much, as I still run a cash budget for incidentals week on week, as i feel anything <$10 should be a cash transaction due to merchant fees for the vendors. (Oh can you tell my father's a banker?)
I love this comment because you make a good point about the difference in each country’s banking and financial practices. There are places that are totally cash focused. I really don’t love taking money out overseas because I try to blend in as much as possible. I did confuse people in Australia because not all of my cards had the tap technology. Now, I need to switch all my cards to avoid that problem.
Surely normal people use ATMs, so then you really are blending in? I’m a tad confuzzled?!
LoL! Normal people DO use ATMs but, there are some places: Argentina-where I DON’T blend in. I actually felt very unsafe there and was glad that I had cash prior to arrival. I also like to see “the lay of the land” so that I can find the safest and most non-descript place to go to withdraw cash.
I getcha – I had the vultures circling when I was getting money out in Abu Dhabi. Single woman alone, getting cash – without a headscarf.
Exactly!
I always use cash when I travel abroad because I don’t always have Internet access to check my account balances. With cash, I know exactly how much I have left. But I don’t get foreign currency ahead of time, I find withdrawing from local ATMs is usually the easiest and cheapest way to go for me.
I like to use cash when I’m abroad and it makes things easier. I am leery about withdrawing cash overseas because of the potential for fraud.