While Travelling #1 – Foreign Currency Notes

Always remember – when you are visiting abroad – to have 50% of your expected expenses in foreign currency notes (destination’s official currency in hard cash form).

It definitely helps in emergency scenarios and for making payments to shops – who do not accept cards.

Now, you might think that 50% in hard cash is quite huge! But, if you change your expected expenses as ‘pre-paid expenses’ – then, it will not be huge!

In a typical Family Vacation, the travelling expenses are split as follows

1. Flight Tickets (20%)
2. Hotel Stay (25%)
3. Attractions & Entry Tickets (15%)
4. Food & Transportation (20%)
5. Shopping & Other Expenses (20%)

With technological advancements, the first 3 points have become ‘pre-paid expenses’ i.e they are pre-booked even before we reach the destination (covering 60% of our overall expenses)

The last 2 (Food, Transportation, Shopping & other expenses) will be the only expected expenses and having half of this in cash is much easier!

Key Things to Know:

• Buy Foreign Currency Notes in your country and at authorized forex dealers
  • Do not buy it at airports or in shopping malls, as the conversion charges are extremely high
  • Do not buy it at unauthorized dealers as they might be counterfeits or you may not get a receipt for the purchase
  • Preferably ask for a mix of denominations as it will be easy to make small payments (for taxis, street hawkers etc)
• Always check the rules on foreign currency note holding limit – in both your country as well as in your destination
• If there are plans to re-use the old foreign cash (saved from previous travel) – check if it is not demonetized
  • Foreigner fined for having demonetized notes

Well.. This was all about foreign cash usage. Check out next on when to use Forex Card or Credit Card!