How to Manage Money While Travelling Internationally

When you step out of your home country, figuring out how to handle money abroad can be overwhelming. Should you carry cash? Rely on cards? Get a forex card?

Over the last 3 years, we’ve been full-time travellers across 45 countries — and as Chartered Accountants, we’ve tested every possible way of spending and saving money abroad.

Here’s our honest, practical guide to managing money while travelling internationally — what works, what doesn’t, and a few tips that will save you fees, frustration, and fraud. At the end, we’ve also shared our own personal setup for managing money on our journeys.

💵 Cash: Still King (but only sometimes)

Even in today’s digital age, cash is still essential while travelling abroad — especially in local markets, street food stalls, buses, and in countries where digital payments aren’t widely used. Smart cash-handling strategies while travelling:

• Carry enough for 2–3 days of expenses atleast.
• If you’re travelling as a couple/group, split the cash between you for safety.
• Withdraw from ATMs in the local currency or visit bank counters in the city. Avoid airport exchange counters — they usually have the worst exchange rates.
• If carrying cash from home, bring widely accepted currencies like USD or EUR (much easier to exchange than INR or other local currencies).
• Be cautious with black-market exchanges: rates may be better, but so are the risks.
• Keep cash in 2–3 different hiding spots — never just in your wallet.

🤑 Pro tip: Always carry a small USD stash ($200–300) in mixed denominations. It’s the world’s “backup currency” and has saved us multiple times — especially in Africa during Season 3.

🏧 Debit Cards: Handy but Risky

Debit cards are easy to get — anyone with a bank account has one — but when it comes to international travel, they’re not always the smartest choice.

Pros:

• Convenient and directly linked to your bank account.
• Simple to use at ATMs worldwide.

Cons:

• High foreign ATM withdrawal fees.
• Currency conversion mark-ups on every transaction.
• If skimmed or compromised, your entire bank account is at risk.

🤑 Our take: Use debit cards only for ATM withdrawals abroad, never for day-to-day swipes or online bookings. Some additional tips to save money when using debit cards overseas:

• • At the ATM, always select “Without Conversion” to avoid Dynamic Currency Conversion (DCC) scams.
  • Withdraw the maximum amount allowed (based on your cash needs) to reduce repeat ATM fees.
  • Remember, you often pay two fees: one from the foreign ATM, and another from your home bank. Whenever possible, find an ATM that has no / clearly shows zero withdrawal fees before you withdraw.

💳 Credit Cards: The Traveller’s Best Friend

Of all the payment options, credit cards are what we rely on the most. Here’s why we love using credit cards abroad:

• Safer than debit cards — they’re not linked directly to your bank account and usually come with better fraud protection from the issuer.
• Travel perks — free airport lounge access, reward points or miles, and complimentary travel insurance.
• 0% forex markup — some cards let you spend in foreign currency without extra charges, a must-have for frequent international travellers.

💡 How to use credit cards smartly while travelling:

• Carry two cards on different networks (Visa + Mastercard, maybe even RuPay if it’s accepted at your destination).
• Use credit cards for big spends like hotels, flights, and online bookings.
• When swiping or tapping, always pay in the local currency (never INR/USD on foreign POS machines) to avoid Dynamic Currency Conversion (DCC) fees.
• Enable SMS/email alerts so you can track spends instantly.

🚫 DO NOT WITHDRAW AT ATMs using credit cards as they typically have huge cash advance fees!

💱 Forex Cards / Prepaid Travel Cards

Forex cards are popular with first-time international travellers, but they’re not always the best fit for long trips.

Pros:

• Locked-in exchange rates (you know exactly what you’re spending).
• Easier to stick to a budget.
• Safer, since they’re not linked directly to your bank account or credit card.

Cons:

• Reload and withdrawal fees add up quickly.
• Hidden charges that aren’t obvious upfront.
• Replacing or unblocking a card while abroad can be a real hassle.

🤑 Our take: Great for short international vacations, but not the most flexible option for long-term, full-time travel.

📱 Mobile Wallets & Digital Payments

Depending on the country, digital wallets can completely change how you handle money abroad. In some places, they’re more widely accepted than cash or cards. If you’re from India, you’ll know how easy using UPI or Paytm wallet is!

Similary, these are the popular mobile payment options around the world:

• China: Alipay, WeChat Pay (used everywhere — from street vendors to train stations).

• Africa: M-Pesa (especially in Kenya and Tanzania, where it’s the main way locals pay).

• Europe & US: Wise, Revolut, and Venmo (great for easy international transfers and card payments without heavy fees).

We personally used these options in both China and Africa, and they saved us a lot of hassle — though setting them up initially does require a bit of effort.

🤑 Tip: Some wallets require a local SIM or bank account to set up, so they’re most useful if you’re staying longer in a country.

🌍 Handling Multiple Currencies

When travelling internationally, managing multiple currencies smartly can save you both money and stress.

🤑 Our simple three-way strategy:

• Keep USD as an emergency currency — widely accepted and easy to exchange in most countries.
• Use a 0% forex credit card for big spends — hotels, flights, and online bookings are safer and cheaper this way.
• Withdraw local cash using a low fee debit card for small daily expenses — street food, local transport, and markets.

This 3-way approach keeps your finances simple, safe, and flexible while travelling abroad.

🔒 Safety & Fraud Protection

Money mishaps are the last thing you want while exploring a new country. From ATM scams to pickpockets, staying vigilant can save you a lot of stress and money. Here are some practical tips to reduce fraud and theft while travelling:

• Use ATMs inside banks – avoid random street kiosks, which are often targets for skimming or hidden fees.
• Never let your card out of sight – even trusted vendors can swipe your card incorrectly. International spends usually don’t require PINs or OTPs.
• Carry a “dummy wallet” – keep a small amount of cash and expired cards in it. If you’re mugged or pickpocketed, it can protect your real funds.
• Use RFID-blocking sleeves – especially in high-traffic areas or countries known for digital theft. These prevent thieves from scanning your contactless cards. Or disable the tap and pay feature using the bank’s mobile app.
• Split your cash and cards – store them in different pockets or bags. That way, losing one doesn’t leave you stranded.
• Enable instant alerts – SMS or app notifications for all transactions help you spot fraudulent activity and report it immediately.

🤑 Pro tip: Even if a destination feels safe, taking these precautions can save hundreds of dollars and hours of hassle. It’s better to be slightly over-prepared than be caught off guard.

📊 Tracking Expenses on the Road

Small daily expenses can add up quickly while travelling internationally — even more than flights or hotels sometimes. Tracking your spending is the easiest way to avoid surprises and stick to your budget. Our top pointers for tracking travel expenses:

• Use dedicated travel apps – we rely on apps like TravelSpend or Trail Wallet to log daily expenses by category: Stay, Food, Transport, Activities, and Miscellaneous.
• Maintain a simple Google Sheet – if you prefer, a spreadsheet works just as well. It allows you to track cash and card spends in real time. This is what we do – everyday, everywhere.
• Log cash spends immediately – street food, local transport, or small purchases often slip your mind if not recorded right away. We do this on a Whatsapp message to eachother.
• Review weekly – a quick weekly review helps you identify overspending and adjust your budget for the next week.
• Use separate categories – stay, food, transport, etc. – this makes it easier to calculate your total spending and understand your cash flow abroad. 
• Track the expenses in the currency they were incurred and apply the relevant exchange rate to your home currency to know how much it impacts you.

🤑 Tip: Keeping your finances transparent and organized reduces stress, helps you avoid unnecessary fees, and ensures you can enjoy your trip without worrying about money.

💰 Quick Comparison: Cash vs Debit Card vs Credit Card vs Forex Card vs Digital Wallets

We’re curious – what’s your travel money setup – do you swear by cash, cards, or something else? Share your hacks in the comments below!