Money Makes the World Go 'Round

Or should I say, "money goes 'round the world" because you have to take it with you to your dream destination. You can't live without it, especially when traveling abroad. I'm always up for swapping best practices or learning from others what has or hasn't worked for them. So when I met up with a pair of fellow travelers that were also trekking through India, I jumped at the chance to learn what was working for them. They had a family member that was sending them money via Western Union, which is a convenient, consistent and reliable way to send money to anyone around the world. It worked for them, but it seemed like it'd be too much work for me.

The good news is that you have options! What are they? What should you choose? And what if it's your first time in India? Well, scroll on, dear reader, scroll on!

Option 1: Exchange Money at Home

This option lets you arrive at your destination prepared, no need to stop off at an ATM or at a dreaded Foreign Exchange (FX) counter. You can just walk out of the airport, ready to start your journey.

If you're going on a trip with fixed dates or for a short amount of time, this could work well for you. And since you have cash in hand, it can help you stick to your travel budget and you can get the small denominations you want. Plus with a finite amount in your pocket, you'll be able to resist all the pretty things that cry out to you from the vendors' stalls: "I can fit in your suitcase; I don't weigh that much. I can be a gift for 'so-and-so'. You'll never see me again if you don't take me with you now!" (I admit, I had some problems in Jaipur 😉😩)

The downside to this is that you'll (potentially) have a lot of cash on your person, which could make you vulnerable. And if you do spend all your cash buying pretty gifts that may or may not wind up with their intended recipient (I'll leave it up to you to decide whether or not you consider yourself as an ' intended recipient'), you may need to get more, which means you may still need to follow the other options. Sometimes it may be hard to know how much things truly cost, so knowing and using all of your options is a best bet.

Now that I've rambled on about doing the foreign currency exchange before leaving home, it would help to let you know where you can do it. You can try your current bank to see if they offer it. And I'm sure there are many options that you can do a Google search to find, but one that I know that will definitely work is through AAA. Check out this link on getting Foreign Currency to find out more.

Option 2: Use the Foreign Exchange at the Airport

Don't do it ... just don't. Unless you're desperate and have no other choice. But before you walk over to that counter, look around the airport for ATMs and turn your phone on!

Option 3: Get Currency from Friends

Do you know someone who has gone to your destination country? Maybe they had a little left over cash they wouldn't mind parting with. You can do a direct exchange with them without paying any additional fees. Simply look up a currency converter site to get the current exchange rate. Here are some suggested sites to use and you can even download their apps.

Or, if your friend is especially kind, they may gift you some of that spare cash they have. Either way, getting currency from a friend is an easy and inexpensive way to help you get started on your journey.

Option 4: Use an ATM

The benefits of the ATM are that you can get money as you need it along your journey at many convenient locations. That said, it's important to choose the right debit card so that you don't pay a lot in fees. You'll want to find a bank that at least has $0 foreign transaction fees and it's an added bonus if they reimburse you for any ATM fees.

These articles show what banks offer such cards in the US so you can compare and select one that's best for you.

Please note: This is specifically for debit cards where the money comes straight out of your account. As a best practice, you may want to open account with one of those banks that is dedicated strictly to your travel budget. This keeps your travel money safely away from your 'real' money for when you're home and minimizing any sting from losing your debit card while abroad (yes this really happened to me, but that's for another blog post).

To help you save more money at the ATM, when they ask to convert it to dollars for you or let you take the money out in the local currency, always take the local currency. As an example of savings, let's say I withdrew ₹500 and the ATM said it could convert it to $6.40 for me or I could withdraw it in rupees. By choosing the latter and my bank would charge me $6.00. It may not seem like much, but every dollar adds up, and you can just imagine if it were a larger transaction.

It's a good idea to also have a separate credit card that also has $0 foreign exchange transaction fees. What has worked for me is to use my debit card strictly for ATM cash withdrawals and my credit card for any other purchase. If my credit card number gets stolen, my losses are minimized because I can always cancel the card or dispute the transaction with the credit card company. But if my debit card info is stolen, it'd be harder to get my money back. Try to be balanced in your spending, because you don't want to come back from your trip with a load of debt you can't afford.

If you're looking for a credit card that is international travel friendly, check out these sites to help you find the right one for you.

Thrifty Traveler: "Everything You Need to Know About Avoiding Credit Card Foreign Transaction Fees"
Thrifty Nomads: "THE BEST TRAVEL CREDIT CARDS FOR 2023"

So what will work best for you?

Maybe one of these methods or some combination. It depends if it's your first trip to India and your comfort-level with having certain amounts of cash with you. Decide what's best and safest for you.

Additional reading with tips 7 practical money travel tips are here on Thrifty Nomads, scroll to the "Essential Tips" section.

Happy travels!

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