[Money Matters] | [How much to bring?]

Money Matters

Decide before you leave how much money you intend to spend on your trip and stick to it. You can have money wired to you in an emergency, but this is very expensive. See further down the page (here) for a guide to budgeting. There are a couple of options available for carrying your money with you: Travellers' Cheques: Travellers' cheques are the safest form to carry all money abroad. If you plan to visit a number of countries, take them in US Dollar denominations, as these can be universally accepted. Before you leave, make a few copies of the serial numbers, and leave one copy at home. This will ensure that you can claim them back if they are stolen. When travelling, cash enough cheques to to last you at least one week, to avoid many transaction charges. Also, only change as much as you expect to spend in each country. Otherwise, you will face hefty currency conversion fees Tip: avoid transaction charges by cashing travellers' cheques in the foreign offices of the issuer (E.G., if you have AMEX cheques, cash them at AMEX offices abroad, where they may change them for free) Tip: if you are travelling with a friend, get travellers' cheques in both of your names, so either one of you can cash some if the other is sick. Note: the imminent introduction of the EURO single currency across most of Western Europe (the UK is a notable exception) will make travelling much easier, as this one currency can be exchanged in (initially 11, subsequently more) many countries. Cash: Bring as little cash as possible with you, wherever you travel. There are so many bureau de changes around that there is no reason to carry much real currency with you. It is a good idea to have small amounts of cash for each of the countries you are travelling to, which will allow you buy a meal, or book a room before you change some extra money. If you don't know which currency to bring, take US Dollars, which should be accepted universally. Credit Cards: These are a good idea, and very safe. Most of Western Europe accepts all major credit cards, while you may encounter problems in Asia. While there are many benefits to bringing a credit card, including being able to book hostels in advance, it makes it very easy to over-spend your budget. Unless you're very self-disciplined, one solution is to transfer money into your credit card account before you leave, and only spend what you have. This way you won't come home to huge bills. Another advantage of a credit card is the ability to withdraw money from ATM machines worldwide with them. Again, this will be expensive if there is nothing in your account to start with. Tip: many credit card companies offer travel bonuses to card-holders, including free travel insurance. Seek out the best deal for you before you leave. Bank (ATM) Cards: Depending on the type of bank account you have, it is often possible to bring your ATM card abroad and access your money through the VISA or CIRRUS network. Most of Europe supports this, which can be very useful for quick access in emergencies. As the fees involved are usually high, this should be used only in emergencies.

[top]

How much to bring?

This is always a difficult question to answer. It really all depends on where you are travelling to. Europe is much more expensive than Asia, which is much cheaper than Australia. So, taking each section into account, here's some guidelines: Europe: The basic rule of thumb recommends bringing $50 a day for most of Western Europe. This should scrape you buy, letting you stay in dorms in hostels, and eating very cheaply. Certain countries and cities are obviously more expensive than others (Paris and London spring to mind), but careful budgeting will go a long way. For the occasional meal in a restaurant and a private room in a hostel, $70 a day would be more accurate. This figure doesn't include your travelling costs, but if you have a Eurorail or Inter-rail ticket, they should be negligible anyway. Tip: if you plan to stay in many hostels, buy a YHI hostelling card before you leave, as this will entitle you to cheaper rates in affiliated hostels Asia: The popular convention of 'doing Asia on the cheap' still holds through. If you want to stretch your budget and see many places, South East Asia, in particular offers backpackers the opportunity to travel with little money needed. US$10 a day is a typical estimate that will buy you a hostel bed and 3 hearty meals. Increase this to $15 or $20 if you plan on visiting a few Western fast-food restaurants or wish to get a double hostel room. Australia/New Zealand: If you are planning to visit Australia after Asia, the cost of living may shock you, but it actually isn't too expensive, and is somewhat cheaper than most of Europe. The standard $50 a day should get you by if you want to stretch your budget, but various activities and sightseeing can add considerably to this. USA: It is easy to get by in the US on $50 a day, and there are many guide books written with this specifically in mind. Transport costs may add much to this figure, while accommodation and eating are by and large cheap.  In general, decide how you want to live while travelling. Some people will insist on spending the least amount possible, and surviving on the road a bit longer, while others will need the regular comforts of a few beers, a nice dinner or a comfortable bed. It is possible to get a mix of both and travel realistically. The best advice is to make a budget before you go, overestimating most of your spending and try to stick to it.

[top]