Wanting to find out a bit more about managing my money whilst travelling around the world.
I'm from Scotland and about to set off round the world, starting in South America. Does anyone have suggestions on what the best way to manage my money is? Am I better using a credit or debit card? I'll appreciate any help I can get, feeling a bit clueless on what is best/cheapest/safest.
Hello button face and welcome to the forum. Each person will have his or her preferred way of managing money on the trip. I would like to share one of the best pieces of advice I was given. It really saved my bank accounts when I was in Spain and my ATM was stolen. I have a bank account devoted solely to travel. The ATM card is not linked to my regular checking or savings. I can go online and move money between accounts, but the ATM card will only access that 1 account. When my ATM card was stolen, I did not have to worry about cancelling any of my regular online transactions with my checking account or have to close it. The only money the theives were able to get to was the small amount I had in the special account. Again, this is something that works for me. I prefer to have the ATM card and pull money out as I go so I don't have to use a credit card for very many things. Each time a VISA is out of my sight, is time to worry that someone is copying it in my opinion.
I hope you have many other ideas posted here. Have a great trip. South America has become my favorite destination. Enjoy it.
Another nice bonus: ATM withdrawals have some of the best exchange rates available. It will be higher than the true interbank rate (because your bank will tack on a commission) but its still much better than an exchange outlet.
i think you can easily manage the money if you plan it first, where to put the how much amount, in spite of all these, you must take a little bit extra money with you. But the one and the main thing is it to plan your budget
[Edited: 2014 Jan 16 01:52 - Roosta:95057 - No commercial links in the forums, please. See TOS]
Welcome to travel blog.
You've been given some great advice.
The key is to make a budget and stick to it so you can continue to travel.
Both a debit card and credit card can be used safely if you are careful when and where you use it. To check your account make sure you are on a secure connection.
I agree with all of the above. ATMs by far the most convenient source these days (certain British banks used to do free-international withdrawls - think one was Alliance and Leicester - see if anyone still offers this service). A credit card is (traveller's cheques aside) the safest (most protected source) and essential for the odd big purchase. We always travel with both (and an option on the latter: visa and mastercard), but also always have a smallish amount of cash (dollars are still best) and a bunch of traveller's cheques. The latter can't be beaten if you are (unlikely) robbed of everything. Oh, it may seem anal, but keep a tab of all you spend each day, otherwise you may be surprised at how "out" your guestimates are AND delighted when you're cruising under budget.... We keep running tabs on total thus-far spent and average daily spend; but then again we are anal........ Such records are - honestly - really interesting we re-read decades later....
We have used a Post Office money card in the past (available from major post offices in the UK), you can pre-load it and add to it if and when you need to, it also means that it is not linked to any other accounts if it does get stolen or lost. They work at ATM's all over the world.
I would think using a credit card overseas is a risk, especially in countries where there are high chance of getting the card number stolen.
What would happen if one day your card is blocked and you have no access to cash? Then how are you going to clean up the mess? It's best to use cash and travelers check (you can cash it and it is safe as well)
Recently we've found that it's difficult to change travellers cheques in some places because they are so rarely used.
Brendan gives a good piece of advice about keeping an account just for day to day that you top up online. That way if the card gets stolen, you don't loose a lot of money.