Money

• What should I do with my mail and bills?
• Should I bring some travelers checks?
• Can I just use an ATM card?
• Can I use credit cards everywhere?
• Should I bring some actual cash?
• How can I keep cash safe?

What should I do with my mail and bills?

Hopefully you have a trusted friend or relative to receive your mail on the road, and hopefully you won't be getting much important mail or many bills while on the road anyway. If you'll be using a credit card while traveling it's probably a good idea to have the bills forwarded to someone who you trust who can open them and then check the activity for you and pass along any important information.

With most banks you have a certain grace period to report fraudulent charges on your card so it's important to have someone checking them each month. If you are using your card on the road the chances of someone else using your account aren't terribly high, but if it happens you do want to make sure you can find out about it and report it in time so you aren't liable for the charges.

It is possible to actually receive mail on the road, and we covered that in another section, but it's really a pain in the ass and not something you'd want to rely on for normal monthly responsibilities.

Online banking is widely available, so that's a great way to keep track of your accounts on the road. Some credit card companies allow full access to your bills online as well, so arranging for that is a good way to stay safe and protected.

Should I bring some travelers checks?

Even a decade or two ago traveler's checks were the preferred method for dealing with cash on the road, but these days they are becoming a rarely-used tool for most seasoned travelers. It's not that they are not still accepted in all the same places, it's just that with ATMs being everywhere now traveler's checks are more hassle than they are worth to most people.

They can still be changed for local currency at banks, airports, and high-end hotels, and they can still be used to pay for some things at more pricey businesses, but the exchange commissions are always going to be higher than the small ATM fees you'll pay if you play that game right. And by using ATMs you can access your money 24-hours a day, while changing traveler's checks usually involves waiting in lines during limited business hours.

It's not a bad idea to carry an emergency fund with you in the form of a traveler's check or two since the ability to get a refund if they are lost or stolen could really come in handy. But most travelers are leaving the bulk of their money in their banks and withdrawing from ATMs as they go, which also limits the potential to get financially wiped out on the road.

Can I just use an ATM card?

For most travelers the ATM card is the primary weapon of choice these days, but check out the other money topics because some kind of a mix of ATM cards, credit cards, and a bit of cash is probably the best idea. The advantages of using ATM cards are many. You get to keep most of the money in your bank instead of in your money belt, and when you need it you can get it in the local currency at the exact fair and current exchange rate. Of course, you'll be charged a transaction fee to pull out foreign currency abroad. You can keep the impact minimal if you take out larger sums less often since the fee is usually per transaction instead of a straight percentage. Some banks have a certain number of free out-of-system withdrawals per month so check your situation before you leave home.

An advantage of credit cards that you don't get with ATM cards is it's much easier to get the charges knocked off if something goes wrong. And using plastic over the internet for future flights and reservations is normal fairly safe if you are careful, but with credit cards there is usually much lower potential liability if you happen to be the victim of fraud. And certain credit cards also offer extra insurance or protection for the thing being purchased, which you don't get with ATM cards.

Can I use credit cards everywhere?

No, unfortunately not. Credit cards are a great way to pay for things in many parts of the world, but in other areas they are useless. You should definitely bring one or more credit cards, however, you'll need another method of payment in certain regions of the world. As you may know, businesses have to pay banks a small percentage of the transaction in order to accept your credit card. In Europe, and the States etc. the business just eats the small fee themselves, but in parts of South America and Asia, for example, the fees are up to 10% and the business adds that onto your cost. In cases like this paying with just about any other method makes financial sense.

Also keep in mind that most credit cards will add a surcharge on your bill of between 1 and 3% to each purchase made outside your home country. That might sound like a fee it's best to avoid, but there are no methods of paying for things that don't involve losing something along the way. Changing cash or traveler's checks will involve fees that are normally a bit higher than that at best, and ATMs generally charge an unavoidable fee each time you withdraw in a foreign currency so 1 to 3% isn't so bad.

Should I bring some actual cash?

Yes, in addition to what you might be bringing for the airport run and the first leg of your journey, you should bring some cash with you for further down the line. US Dollars are best, but Euros are quickly gaining the same sort of worldwide acceptance. Keeping an emergency fund (in a safe place, of course) of perhaps $100 will come in handy in many different situations. And believe it or not, there are places in quite a few countries where you can pull additional US Dollars out of ATMs to re-supply yourself along the way.

There are various border-crossings and airport exit taxes that are best paid in dollars. In many (but not all) cases they'll take local currency as well, but this can get complicated if you are leaving a country and some fee pops up unexpectedly. Generally you'll want to leave each country with as little local currency as possible, so if you've successfully used up all of your money and a fee pops up or you want to buy something beyond customs at an airport, you can almost always pay in USDs or Euros.

How can I keep cash safe?

Most of the usual common sense stuff applies here. It's better to keep your wallet in your front pocket than in your back pocket as experienced thieves can be found in nearly every country on earth.

There are many variations on the money belt idea as well. The old money belts were literally belts that held up your pants, but they won't fit more than a thin stack of bills. Newer versions come with large compartments that will even carry your passport and they fit snuggly under your clothes, but these can be a bit awkward to access at times, especially if you don't want to broadcast that you have the thing to everyone in the area.

There are also versions that hang around your neck under your clothes and these tend to be large enough for even things like your passport as well. Another variation slides up your leg with a large pocket that is snuggly kept along your lower leg. Different people find different things comfortable so go to a travel store and carefully check out your options to see which you think will work for you.

In addition there are some security strategies that you'd probably never need in your hometown, but might be worth trying in countries where you don't feel as safe. Generally speaking, the chances of getting hurt or killed by a thief are extremely low, yet the chances of getting mugged aren't nearly so trivial.

One method is what we like to call the Two Wallet System. Keep most of your cash, credit cards, and any other important documents you need in one wallet, and keep that wallet in the safest possible place. Then buy an inexpensive wallet for most day-to-day uses. You'll keep enough cash for the day in there, as well as maybe an old library card or some other non-critical plastic. That way if you take a wrong turn and suddenly somebody demands your wallet, you hand them that one and you are on your way with only a minor loss.

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