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How to handle your money at home and abroad will be to greatly consider before you leave. How To Carry Your Money "Coconut's" Money Belt After two trips and experimenting with the best way to carry money, I discovered a traveling wallet that fit the bill. It entails wide diversity of features most valuable to a traveler. Coconut's traveling money belts offer the following features which should be in any billfold you purchase. Always try on the belt you are looking to buy. They should feel comfortable. Money belts should be worn under your clothing, next your body for security purposes. The Coconut's Belt Features
How To Carry Your Money Safely
How To Carry Your Money Unsafely
What To Carry In Money Belt Each traveler's "Money Portfolio" will be customized to their own personal needs and wishes. The following items are included in my personal "Money Portfolio", which I have carried successfully throughout my travels.
$Desirable Dollars$ Stability Of United States Currency Currency exchange rates change daily if not hourly around the globe. Depending on the strength of the United States dollar, you may have greater buying power at certain times than others. Overall the stability of the United States dollar, on the world market, is relatively sound. Foreign merchants and individuals welcome United States currency when buying items such as souvenirs because they know it will hold its value more steadily than perhaps their own national currency. Shop owners and vendors will collect United States currency. When it hits a high in the exchange rate they will then exchange the dollar themselves for their own currency and make a profit. Traveler’s Checks Traveler's checks are the safest and most efficient way to carry money when on a trip. Only purchase the kind that are guaranteed to be replaced if lost or stolen. Leave the receipt numbers at home with a family member or friend. Carry a photocopy of the traveler's check numbers and emergency contact number. If they are stolen you will have a record at home as well as in your pack. If you know the check numbers and information, then replacing the check will go much faster so you can be on your way once again. Put the bulk of your traveler's checks in one hundred dollar denominations and five to ten twenty dollar traveler's checks as well. The twenty dollar traveler's checks come in very handy for an extra day in one country, when you don't want to cash a hundred dollar traveler's check. Transaction Fees Most if not all banks, hotels, and exchange offices will all charge a transaction fee when cashing either a traveler's check or United States dollars. Currency exchange offices post the daily exchange rates; inquire as to what the transaction fee will be. Most exchange offices are competitive, some offer a slightly higher rate, however the transaction fee may be higher. A receipt will be given to you, listing the rate of exchange, conversion amount in foreign currency, and the transaction fee. Count Your Money Before You Leave Always count your money before you leave the exchange counter. Take your time to make sure you have the full amount you should receive. Ask if you do not understand any part of the transaction, the fee or the conversion into foreign currency. Once you leave the counter it's your word against the cashier's and there will be little you can do to rectify the situation. How Many Traveler's Checks Do I Cash? Cash one or two checks when you get to your first destination. After a few days of travel, you will begin to get an idea of how much you are spending on accommodation, food, transportation, and sight seeing. Budget how much you will spend in four or five days and cash as many checks as you will need. It is important not to cash too many at any given time in case of theft, but you also don't want to spend all your trip trying to locate the exchange offices, so plan accordingly. Keep a log, in your journal or a small memo book, of when and where you cashed traveler's checks. A running tab will keep track of how much you are spending and where you cashed your checks. If your checks are stolen you will also know which ones you have already used. Personal comfort about carrying cash and the accessibility of exchange offices will be factors as to how many checks to cash and carry at any time. Exchanging Currency From Country To Country Bills may be exchanged from country to country, however coins may not. Again, a transaction fee will be incurred when exchanging foreign bills. Coins are not transferable from country to country and will not be exchanged at currency exchange offices. Spend excess coins before moving on to the next country, exchange them for bills, or spend them. Coins make fun souvenirs of travel, I hold on to a couple from each country I visit. Where And How To Exchange Money
Airport, train station, and hotel exchange offices always offer the worst rates and highest transaction fees. In these locations, the exchange offices are counting on your desperation and anxiety in collecting and transferring foreign currency. You pay for the convenience and instant gratification. Sometimes you just have to change at least twenty dollars at the airport when you arrive. You may need cab fare, subway fare, or bus fare. Cash a twenty and join the many travelers before you who also received the "rip off" exchange rate. Try to stick with official banks, foreign currency exchange offices, and American Express offices. They offer the most competitive exchange rates and the most reliable service. How To Exchange Your Money At The Exchange Office Traveler's Checks
DO NOT co-sign traveler's checks before you get to the window. If the teller does not witness you co-signing the traveler's checks, chances are he will not accept the checks. Cashing Bills
Remember, paper money (bills) will be exchanged, but coins will not. Credit Cards Emergencies, big ticket items, and quick cash advances - there are a myriad of good reasons to carry internationally well known plastic cards. Credit cards offer a certain amount of peace of mind when traveling. If I need more money I can take a cash advance or, in case of an emergency, I can show my little plastic card and get the help I need. If you plan on making a large purchase or to arrange a side trip when you are in a certain country, then paying by credit card saves you from draining your traveler's checks and throwing your budget askew. In addition, if there is any problem with the merchandise or booking of the side excursion, you may have some recourse with the merchant or travel agency through your credit card company. A cash advance on your credit card is a quick and safe way to restock your funds. I did not want to carry over three thousand dollars in traveler's checks while in India, so when I ran out I drew cash from my credit card and applied it to more traveler’s checks. It is best to take the cash advance and purchase the traveler's checks at the same bank location. It is never wise to carry large amounts of cash, even for a short distance or short period of time. Before you leave, contact your credit card company and inquire if your limit can be raised. Having your limit raised is not permission to spend more; Simply think of it as increasing your insurance policy. Know Your Limit Using your credit cards may be a once-in-a-blue-moon event or a challenging effort not to spend more than you can afford. Know your realistic financial limit before you go, what you can spend, and what you will be able to pay back when you return. Paying by credit card is painless in the moment of the purchase, but when the monthly statement arrives people seem to suffer from amnesia, and have a small heart attack. Make a contract with yourself before you go about, how much you will spend and what your limits will be. Promise yourself you will abide by your own personal contract and stick to your oath. Draw up a contract with yourself that you will only spend so much, then do it! Advantages Of Carrying And Using Credit Cards
Disadvantages Of Carrying And Using Credit Cards
Credit Card Fraud And Theft Always keep the customer copy receipt of the charge transaction and put these receipts in a secure place (wallet, Zip-loc bag in backpack). Some countries still use the carbon copies; make sure you take them with you or rip them up and throw them away in a million pieces. Double check the transaction amounts and total charges. They will be written in the currency of the country you are in. It is your responsibility to check the calculation and translation of the dollar amount you are spending. Be aware and check the transaction, everyone makes mistakes, so give them the benefit of the doubt. Be straightforward and polite when remedying any miscalculations or misunderstandings. Again, if you do not understand the numbers and transaction, ask the clerk nicely to explain it to you. Always carry the International #800 number of you credit card company along with your account number and expiration date. Credit card fraud is a drag. Use every precaution to not become a victim. The Black Market Non-Official, Illegal Foreign Exchangers Exchanging money on the black market is illegal and sometimes dangerous. Oftentimes seedy individuals or more organized crime runs the black market currency exchange rings. Always remember that it is illegal; although it may all seem very innocent. Some travelers may be encouraged to trade their dollars on the black market, enticed by higher rates of exchange, only to find themselves in a set-up. Now they have to deal with the local police and frequently have to buy off the officials and shop owners. Beware of exchanging your currency on the black market. You don't know these people and it may mean trouble. Individuals who try to get me to exchange my dollars on the black market have approached me all over the world. Although twice I have exchanged currency on the black market, I did not make it a habit or feel particularly good about the transaction. These black market agents are usually harmless, just tell them no and keep walking. Don’t worry, I have never been chased down to exchange my money. Stay with official money exchangers and avoid any hassles or problems with the police. Trading Dollars On The Black Market Twice I have apprehensively exchanged dollars on the black market, once in Russia and once in India. In Russia, I entered the official bank and found the black market agent standing next to the teller window. Not only did I find this stunning, his line actually moved much more speedily than the bank’s! The black market teller was as much a staple in the bank lobby as the light fixtures. I traded a twenty-dollar United States bill with him and that was the end of it. While in India, I did not budget my money well for the week and ended up broke on a Sunday afternoon. I wanted to catch a bus the next morning around 5:00 a.m. and settle my lodging bill before then. I also thought eating dinner would be a good thing but credit cards were useful where I was. I exchanged a traveler's checks with a shop owner, under the guise that I was purchasing some jewelry. We negotiated a rate of exchange, bartering for the best rate and then we made the transaction. The entire incident made me uneasy and I vowed not to be in that predicament again. Although some travelers use the black market as their main source of currency exchange, I would not recommend it. Automatic Teller Machines ATM machines may be available in certain areas of the world, although I have heard they are unreliable and are located only in specific cities and locations. Do not rely on ATM money services while traveling. If You Choose To Use The ATM System
Money Manager At Home When you are away your monthly bills will still come to your address. They need to be paid or you will find yourself in a collection agency when you return. No one wants this type of a nightmare awaiting her when she returns from a magnificent adventure. The time you plan on being out of the country will vary, and so will the amount of help you need in looking after your affairs while you are away. If you plan on traveling only for a few weeks, your needs will be drastically different than the woman who plans to travel for several months or a year. Depending on the duration of your travels you will need to ask a trusted, reliable friend or family member to pay your bills and manage your financial affairs while you are away. Ask someone you know you is reliable and manages their financial affairs well. Credit card balances, student loans, and other financial obligations may need monthly tending that will not wait until you return. Figure out what will need attention while you are gone. Lay it all out for whoever will tend to your financial obligations while you are away. Be specific about how much to pay and when, don't leave your trusted friend or family member guessing. Pay off any bills or consolidate credit cards to simplify your financial obligations for your agent. Get Organized And Make Your Money Matters Simple And Clear File Folders
Envelopes And Stamps
Checkbook
Adding Money Manager To Your Checking And Saving Account If you plan an extended time of travel consider adding your manager onto your checking and savings accounts. The agent may then have access to either deposit or withdraw money from one account, or transfer money from your savings account to your checking account. It is near impossible to put another person on your bank account when you have already left the country. Direct Deposit And Direct Withdrawal
Change Of Address Bills Go To Money Manager
Remember your designated money manager at home is doing you an enormous favor by keeping your financial matters in line while you are gone. Budget how much money you will need to keep in your accounts to cover your financial obligations and then add some to that. Don't leave agent at home frantic about paying your bills while you are relaxing on the Greek Island of Mykonos. Arrange a time with your advisor to explain your financial affairs and ask if he/she has any questions or concerns about them. Work this out before you go, so you both feel secure when you depart. The more you simplify your financial affairs, the less headaches your friend or family member will incur. Check in with this person every couple of months to make sure all is well. Remember to buy them a really nice gift for covering your affairs while you were away!
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