Have you ever been worried about how to handle your money while you travel? For some, it can be quite overwhelming. How do you navigate the ATM’s, currency exchanges, credit cards and are travelers checks still a thing? (No they are not!) How do you know if you’re getting ripped off? The Bros have traveled extensively and have managed to keep their money safe and unnecessary charges and fees at a bare minimum. Do not fear, we got you covered! Read on for a comprehensive guide on how to keep your money safe while getting the most out of your money while you travel.

Where Should You Keep Your Money?

The first thing to remember here is that it’s always best to have a backup plan. Being prepared is the key to make sure you are never left stranded without a lifeline (in this case, cash!). If you’re reading this, you’re wondering how to handle your money while you travel, and a big part of that is keeping it safe. Here’s what the Bros recommend: 

• 2 checking accounts with ATM debit cards from separate banks
• 1 online savings account

Checking Accounts

• Sign up for a Charles Schwab checking account. They reimburse ALL of your ATM Fees at the end of each month. This is a game changer and you’d be insane to not be taking advantage of this. In our journey around the world, we saved over $300 each in ATM fees! That’s nothing to sneeze at so don’t throw your hard earned cash down the toilet and sign up with Schwab!

• For your backup checking account, the Bros recommend signing up with Bank of America or another bank that is part of the Global ATM Alliance. The game plan is to never have to use this card unless something goes wrong with your Schwab account. If you use your Bank of America ATM or debit card at one of their International partner ATMs, you won’t get hit with the ATM fees.

• You should not be storing your whole life savings in these checking accounts, because bad things can always happen. You could be a victim of fraud or your account could be compromised when you swipe your card at a shady ATM. Then there are the horror stories of being mugged and forcefully driven to an ATM where you are directed to withdraw all your cash. Be smart & keep enough in here that you need, but not that you’d be willing to lose. You can also set up limits with your banks on the maximum amount you can withdraw each day to help protect your money. 

BROS TIP: Only carry one ATM/Debit Card on you. Your backup/2nd ATM Debit Card should be hidden somewhere in your bag. If your wallet gets pick pocketed or you lose your wallet, you won’t lose everything. You’ll be glad you have a 2nd checking account and that you kept that card in a separate place!

Online Savings Account

Online Savings Accounts are great for a number of reasons, especially for travelers.

• First off, you usually earn a higher interest rate on your savings since an online bank doesn’t have the operating costs of running out of a physical location and maintaining ATMs. This means you’ll earn more money!

• Secondly, it ensures a deeper level of safety for your cash on the road. There’s no ATM card for someone to steal and access your money. The only way to access your cash is to log in to your online account and transfer money over to one of your checking accounts, where you can then withdraw it from an ATM. 

• This is where the bulk of your cash should be stored. You can transfer money to your checking account to withdraw as you need it.

• The Bros use and recommend Ally Bank. It’s super easy to use and they give great interest rates!

How to Access Your Money

Cash

ATM’s. Period. 

Forget about currency exchanges (one of the biggest ripoffs in travel) and traveling with loads of cash hidden in your bag. It’s not necessary! If you use the method already described you can be at ease taking small amounts of cash out as often as you’d like since you will be reimbursed all of the ATM fees with Charles Schwab.

Credit Cards

A lot of times you have the option to use your credit card while you travel. Credit cards with no foreign transaction fees can be just as good of an option as using cash.

Here are some recommendations for using credit cards:

• Just like your checking accounts, you should have 2 credit cards. Check out our posts on The Top 7 Travel Credit Cards and How to Hack Your Way to Cheap Flights!

• We like to hedge our bets by carrying one Mastercard and one Visa. Sometimes places only accept certain cards, and American Express is one of the most likely to not be accepted. This way, you should always be covered. 

• Once again, only keep one card on you in your wallet! The backup/2nd credit card should be hidden in your bag so that if you lose your wallet or it is stolen, you still have another credit card. Think and be smart when it comes to how you handle your money while you travel.

BROS TIP: When swiping a credit card, you may be prompted to pay in your home currency (US Dollars for us) or in the local currency. This confuses the crap out of so many people and it’s amazing how many make the wrong choice. NEVER pay in your home currency! ALWAYS pay in the local currency! If you choose to pay in your home currency you will be charged to convert to that currency at a horrible rate, and you’ll be charged a percentage on top of that for doing so. This means you will pay more than you needed to. Always pay in the currency of where you are. The more you know!

Some Final Tips

• Be sure to be on top of your travel alerts with all your accounts. What a pain in the ass it is when your bank freezes your card and account because they thought it was fishy that it was being used in Cambodia. Let your banks and credit cards know where you’re going so you never have this problem!

• Keep some US Dollars stashed in your pack for an emergency or for obtaining visas while on the road. Almost anywhere will accept US Dollars if you find yourself in a tough spot.

• Use Bank ATMs or machines located in popular spots with lots of foot traffic. Sketchy looking ATM’s in a dark alley way shouldn’t be your first choice if you can help it! 

This is just our recommended way of how to handle your money while you travel, and it certainly works for us. The idea is to always be prepared for the worst case scenario so that way if it does happen, you know what to do. When we were in Bali, my Charles Schwab account was hacked and there were some fraudulent purchases. Thankfully, the bank reimbursed me for the fraudulent charges and although I had to cut my ATM card up while they shipped a new one to my parents house back in the U.S., I had a backup checking account and ATM Card so I didn’t lose a step or have much stress because of it!

READY TO START TRAVELING THE WORLD?

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