So, how much money am I going to need?
It depends on where you're planning to go, how you're getting
there and how rough your willing to live.
A lot will depend on the extras such as going out for a meal
every now and again. Or how much you drink. Some extra expenses
are worthwhile such as going for a pizza in Italy. Some sights
are expensive to get into, but that's why you've gone travelling,
there is no point in travelling somewhere and then not doing
anything because your broke.
A rough estimate in more expensive countries is US$35 - 50 per day, while in some countries it can be as little as US$10 – 20 per day. Some days you will spend more than this and some days less so it will balance out. If this seems like it is beyond your budget maybe you should consider a Working Vacation.
Travelers Cheques? Cash? Visa.
Forget travelers cheques. They are safe and get better rates than
cash but a hassle if there are no banks available and you may
have to pay a fee to cash them.
In Europe the best option is a Visa/Mastercard or
Cirrus Maestro network card. Occasionally cards seem to cease to
work for a few hours but the problem seems to resolve itself
before you starve on the streets. Most cards will give you a good
wholesale exchange rate which is better than any conversion shop
or retail bank. This is an article on Credit Cards and Travel.
June 11, 1999 Plastic: Still Best for Foreign Travel By Ed
Perkins If you're heading out of the country this summer, charge
cards and ATM cards remain the best way to pay your way. Despite
recent revelations about unexpected surcharges, plastic still
gives you more foreign currency per dollar than you can get any
other way. And while you'll always lose a little on each
exchange, careful use of ATM and charge cards can limit your
losses to somewhere near 1 percent -- a lot less than the 5
percent or more you lose each time you exchange currency or
traveler's checks. Specifically, here's how best to cope with
money matters when you travel outside the United States. 1. Pay
as many bills as possible with a charge card. With most bank
cards -- MasterCard and Visa -- you lose only the reasonable fee
of approximately 1 percent that the international MasterCard and
Visa networks charge for the actual currency conversion process.
Of the big T&E cards, Diners Club also charges just 1
So, how much money am I going
to need?
Depending on your destination, how you are getting there, and what
your budget will be; which will dictate how rough you must live, you
need to have some info of the country you’re in to help decide
the best form of payment to make. Most backpackers daily budget is
around USD50 a day but there’s really no point in going travelling
and you can’t do anything cause you’re broke. Consider your
budget carefully before embarking on your travels. If your finances
do not comfortably cover your expenses then maybe you should consider
a working holiday. |
Some pointers that could help
you:
Register with Master Currency for free SMS on daily latest currency
rates.
Credit Card Endorsement – have the amount you will use stamped
in your passport. This is important as you may not be able to use
your credit card.
Cash Passport – earn voyager miles with Visa Traveller Card –
Visa pays in USD
Travellers Cheques – Thomas Cook offices do commission free encashments
and returns. You will find their offices at most Airport and Seaport
terminals and they have offices in the cities. Enquire about the list
of their offices you can use.
Credit Cards, ATM Cards – By far the best and safest way to pay
wherever you go in popular destination countries where you find ATM’s.
Carry a few USD20 bills to local currency to pay at the places that
do not take credit cards. In Europe Visa and Mastercard, and Cirrus
and Maestro networks cards are accepted.
In the USA you can use Visa, Mastercard, American Express and Diners
Club. In an emergency a credit card is invaluable. In the USA your
credit card imprint is required for airline bookings, hotels and car
rentals. Foreign Exchange Bureaus are rare in the United States of
America and its difficult to exchange any currency or travellers cheques
other than US dollars.
Use ATM’s to draw cash. Punch in your PIN and the amount you
require in local currency. ATM’s convert currency at close to
the wholesale rate plus a USD3 fee. Sometimes it can be as much as
USD5 per transaction and the foreign bank with the ATM you use may
add their own fee of USD2 irrespective of the transaction amount.
So a few large withdrawals will be less expensive. If your PIN is
5 digits you may have to change so check with your bank before going
away.
Remember Visa and Mastercards accrue interest immediately regardless
of when you settle your bill. You will always lose on each exchange
but careful use of your ATM card will keep losses at a minimum, around
1 percent, which is a lot less than the 5 percent you lose exchanging
travellers cheques or currency. Coping with money matters cost effectively
means using your charge card to pay your bills. Visa, Mastercard and
Diners Club charge a 1 percent currency conversion rate. Paying with
plastic is groovy! |
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