When it came to our money, we had followed all the rules about carrying money: we had our ATM cards, a supply of travellers cheques and about US$100 in cash. The sensible approach so that even if you lose one of your sources of money you've always got a backup.
The catch, we were to discover after arriving at 9pm in Yangon, was that the military junta were protesting against the international embargo by prohibiting all use of international credit cards and travellers cheques in Myanmar.
...major bummer...
We then found ourselves in the interesting situation of having just US$100 for a 3 week trip, US$500 of travellers cheques and worthless plastic credit cards. Faced with either an expensive flight back to Bangkok just to change some money, or an expedition into the underword of the Burmese blackmarket, we found ourselves in a little shop with our guide negotiating over prices. After some wheeling and dealing, we managed to change US$400 of those travellers cheques on the black market for a commission of 10% - a very low commission we were to find, since everywhere else we asked during the trip around the country wanted 30-40% commission.
The one upside was that it was a very cheap US$400 trip around the country for 2 people for 3 weeks....but that's another story.
So, on to carrying money...
"Carry a mix of currency options"
When travelling anywhere overseas, with perhaps the exception of Myanmar, you should always carry a mix of cash, travellers cheques and credit cards. This is so you always have a backup if you lose one of your sources of money.
Cash - "Never carry more than you can afford to lose"
When it comes to cash you should never carry more than you can afford to lose. In previous jobs, we have heard about students losing 500 euros ($900) when their wallet was stolen whilst they were sleeping on a train. That sucks. Don't let that be you!
The best travel insurance policies might cover loss of cash up to a few hundred dollars, but you'll need a police report and perhaps other evidence to substantiate your claim. Whilst it might be painful incurring bank fees for multiple withdrawals, that's definitely better than losing all your hard-earned coin.
Travellers Cheques - "Insured Money"
Travellers cheques are notes that you buy in Australia and then redeem overseas for foreign currency cash.
For example, if you buy 10 x 50 euros travellers cheques in Australia, you can then redeem those anywhere in Europe (either all at once or one by one) for 50 euros cash each.
The great benefit of travellers cheques is that each one has a unique number and your signature on it, so if they are lost or stolen you can have them cancelled and replaced with new ones. This is like being able to insure your money.
Banks, travel agents, post offices, foreign exchange bureaus (like Thomas Cook) and American Express in Australia are all capable of selling you travellers cheques. Normally you pay a commission or fee when you buy the travellers cheque in Australia - this can seem a bit steep but is worth it for the guarantee of knowing you can have them replaced if they are lost.
Normally you should be able to cash your travellers cheque overseas without having to pay a second commission or fee. You will usually have to show your passport and countersign the cheque in order to cash it - this is the vendor's way of ensuring that it is actually you who is cashing the cheque and not someone who found it or stole it from you.
Tip: Once you've bought your travellers cheque you should make a photocopy of it and record all the serial numbers and keep these in a safe place. In the event your TC is lost, you'll need those numbers in order to have the cheque replaced.
Credit/Debit Cards
Carrying an Australian credit/debit card overseas is an easy way to make purchases in shops around the world or to withdraw cash from foreign ATMs.
Before leaving for overseas, be sure to check with your bank how much they charge for you to use your card overseas. This ranges from $2 with some banks on particular account/card types up to $20 with others so it pays to check in advance!
Withdrawing cash from ATMs abroad using your credit card is useful because you can access your money almost everywhere and you usually receive the best possible currency conversion rate (which you don't get when, for example, changing cash at a money exchange booth at an airport). Once again, though, find out in advance what your card issuer charges for using your card either at an ATM, or in a store, overseas.
We discovered that if we used our card as a credit card in a shop or restaurant, instead of withdrawing cash from an ATM and paying cash, we were saving ourselves a $5 fee each time. Needless to say we use the credit card function and sign for our purchases when overseas!
Finally....
Finally, it's always good to check on Smarttraveller.gov.au before you head overseas. In the travel advisories section you will find information about any known threats/scams etc affecting tourists in particular countries - information that might be useful to you once abroad.
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