Travel money (Blog #8)

Welcome to my latest travel-related blog, which is about travel money, although I think it should really be retitled 'Travelling with money'.

I know that lots has already been written and said about this topic, but as a traveller you should always be looking for travel tips from all sources and on all topics.

Before you travel anywhere away from your native country, it is worth first asking yourself several important questions regarding how much money you should take and how much you think you'll need.

1. Which country or countries am I travelling to?

2. What's the cost of living where I am going?

3. What are my daily costs going to be?

4. Will I need cash or can I get away with only carrying a credit card?

5. How safe and secure will my cash and cards be while I am travelling?

The first of these questions relates to the various currencies you might want to take. I am, for example, travelling to Germany, Austria, the Czech Republic, and Bulgaria in a few months' time. I know I can use the Euro in Germany and Austria, but I have read that some places in the Czech Republic will take Euros, but at a poor rate of exchange. I suspect that I might be able to also spend Euros in Bulgaria, but I wouldn't want to rely on it. So, my trip to 4 counties is going to mean carrying 3 different currencies. 

When travelling with a sizeable amount of cash, be sure to split it up so that, for example, if your backpack is stolen, you don't lose it all. As a general rule, my wife and I each carry a bit of cash on us, but we'd also keep some in the safe in our hotel room. I am always very nervous about unwittingly flashing my cash, especially in public areas. I also like to carry sufficient small denomination notes so that I can hand over as near to the purchase price as possible. Unscrupulous people might try to deliberately short change you if, for example, you hand over a €50 note for a €5 beer.

Apart from being deliberately short changed, another scam you should be aware of, especially in restaurants, is when you're offered being charged in your own rather than the local currency. The restaurant's exchange rate won't be anywhere near the current rate. It's basically ripping you off.

The proliferation of ATMs means you don't necessarily have to take all of your holiday cash with you from the outset, but make sure you'll be able to access a machine where you are travelling to, and check what your card provider's charges will be.

I have a Halifax Clarity credit card, which I use exclusively for foreign travel. Their exchange rates are very competitive, exchange charges are zero, the app is so easy to navigate, and I like that I can freeze the card when I am not travelling. Security of your credit card is very important. You should think about what would it be like if your card was stolen or lost. Do you know how to report this to your card provider? Could you manage without your card and still have money to spend? Also, for this reason, never let your card out of your sight. My wife and I always take a second credit card along, from a different issuer, as backup. It doesn't matter that their charges are higher,  as I'd rather pay a little more than have our trip totally ruined. 

Nowadays people pay for things using their phone. Personally, I wouldn't rely on being able to do this, and I certainly wouldn’t, at least for now, rely on it as my sole method of payment. 

I use the Big Mac Index to gauge how much I am likely to spend on a daily basis. This generally includes food, drinks, transportation, entry into museums, art galleries, tourist attractions etc. For my trip, I know that generally the cost of living in Germany and Austria is going to be higher than in Prague and Budapest, however, I will budget as if I were visiting a major capital city with top prices. Anything less will be a nice surprise. 

I tend to budget on a per day basis. I was in California recently, and I set a $100 spend per day. This didn't include accommodation costs. I used the first couple of days to gauge the cost of the things I would be buying the most, such as coffees, sandwiches for lunch, evening dinner, museums and art galleries, a ride on the local light rail etc. As the trip progressed, I tended to use my credit card for things over $20, but towards the end when I realised I still had plenty of cash, I used more cash for things. Don't forget that you've already 'spent' the cash so you may as well spend it, whereas credit card purchases have to be paid for later.

Going on any trip is fraught with uncertainty when it comes to money. Research and planning your expenditure should be part of your preparation. Once you're on your trip, make sure you and your money stay safe, and don't blow all your cash in the first few days.

Finally, thank you for reading my latest blog. Leave a comment, please. You can also follow me on Instagram #mike53onthemove and on Twitter @Mike53onthemove. 

©Mike Young 2023.