Tip #3: Handling Money Overseas

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What is the best way to get foreign currency without paying exorbitant conversion or international transaction fees?
1. Check with your credit card company, bank or credit union to find out a) what (if any) transaction fees are levied on international purchases & withdraws; b) the exchange rate for a particular foreign currency (i.e. GBP aka British Pounds); & c) if they have (or are affiliated with) any banks in the country you are going to visit. I have found that American Express (at least my Rewards card) does not charge a transaction fee. However, it’s hit or miss if Amex is accepted overseas. Most merchants prefer Visa and MasterCard.

2. Check the exchange rate via an independent online tool (i.e. XE Universal Currency Converter). This can give you an idea if your bank or credit union is giving you a good rate. Right now, with the economic turmoil in Greece (and Italy as well as a few other European countries), the Euro is losing some of its value which is making it weaker against the U.S. dollar. That means more euros for your buck.

3. Debit Cards/Check Cards = I always withdraw cash from the ATM once I get to my foreign destination. The exchange rate is usually pretty good. Be sure to research banks in the country you are visiting to check out their exchange rates beforehand. While exchange rates change daily, usually you can spot trends to identify banks that offer the best rates on a consistent basis. Quick tip — ATMs at the major train stations in the UK do not charge fees for non-bank users so this is a great place to withdraw cash.  Be sure to call and let your bank know you will be using your card overseas. 

4. Credit Cards = A few years ago Europe (including the UK) introduced a “Chip + Pin” card. These are credit cards that are embedded with a “smart chip” and require a 4 digit pin to authorize transactions. Think of it as a debit card.
    a. Using U.S. credit cards abroad: It used to be that you could use your U.S. credit card for foreign purchases with no problem. But this past year, I have found that the acceptance of cards without a “smart chip” is becoming less common. However, most hotels & major restaurants and store chains still accept U.S. credit cards. I usually ask the merchant before purchasing a product or service if they accept cards without a chip. Be sure to verify methods of payment with small B&Bs as I’ve found they prefer cash.
    b. Dollars vs. Foreign Currency: If you pay for an item with an American credit card, be sure to verify that the merchant charges you in the local currency. DO NOT allow them to charge you in U.S. dollars. Hotels will usually ask if you would prefer to be charged in U.S. currency. ALWAYS DECLINE. The exchange rate is terrible & you will end up paying up to 6% more than if you kept the charge in the local currency. Your card company will convert the charge on your statement. Which leads me to…

5. Travelex Cash Passport = I found out about this while at JFK airport on my way to Prague in April. It’s a “pay as you go” Chip + Pin card. You can load up the card either online or at the Travelex kiosk at the airport. It’s safe & easy to use. This allows you to pay for items via a credit card without transaction fees. When the card runs out of money, simply go online and add more funds. You can either buy the card online (for a $9.99 fee) or at a Travelex location (which are in most airports but you can verify on their website).  If you purchase the cash passport online, you can have it shipped or pick it up at a Travelex location.  I prefer to buy my card at the airport which allows me to avoid the $9.99 fee.  The exchange rate is very competitive.

Travel Tip #2: Champagne Vacations on a Boones Farm Budget

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Have you been dreaming about a destination that seems out of reach financially? Where there is a will, there is a way. With smart research & proper planning, you can save a ton of money on your dream vacation. Here are few things to consider:

1. Plan ahead. Know your destination, approximate dates of travel (even if it’s just a preferred month) and your budget. This will allow you to take advantage of a great deal when the opportunity is presented.

2. Airline tickets — When should you buy airline tickets?
    a. For domestic & off-peak international travel, I recommend booking 3 months to 14 days prior. If you are flying international during peak season, you should be prepared to buy your ticket 4-9 months before your trip. I’ve noticed a trend of discounted airfares offered late summer for fall & winter travel to Europe.

    b. DO’s & DONT’s

        i. DO be flexible. You can save a couple of hundred dollars by being able to move your departure or return date by 1 or 2 days.
       ii. DON’T buy a ticket on the weekends. Ticket prices are highest during this time. 
       iii. DO buy your ticket on a Tuesday around 3pm. Pricing trends have shown that many sales are launched on Monday nights which offer discounts of 15%-25%. Competitors tend to match these offers on Tuesday morning. By 3pm, fares are as cheap as they are going to get for the week. Deals usually expire by Thursday or Friday so snap up a good deal no later than Thursday.
      iv. DON’T fly on a Monday, Friday or Sunday as these are the most expensive tickets.
       v. DO fly on Tuesday, Wednesday or Saturday to get the cheapest flight.

    c. Get the social media edge by “liking” (on Facebook) or following (on Twitter) airlines. They have started to tweet & post hour-long airfare sales which can be to your advantage.

    d. Available resources: Check out Bing Travel
        i. This site aggregates information from online travel sites (Priceline, Expedia, Travelocity, Hotwire and BookingBuddy).
       ii. It also has Price Predictor — a tool that is based on historical pricing trends. Has a green, yellow, red stoplight theme which will recommend to either buy now or wait.
      iii. It posts last minute deals. You can get a good deal with last minute deals but it’s a huge gamble. This is really for those who decide today they want to go someplace this weekend.

3. Hotel or Vacation Rental? You can generally save a ton of money by renting an apartment, flat, house of villa. Vacation Rentals typically require you book for a minimum number of nights. You can purchase food & make your own breakfast & lunch (which will save you a ton). Most usually have washers & dryers so you can do a load of laundry which will keep your luggage lighter (and guarantees no over-the-limit baggage fees). I’ve booked a flat in London for 5 people for New Years Eve and we are paying only $250 per person for 5 nights. I will cover the ins and outs of vacation rentals in Tip #5.

4. Buy train tickets in advance. You can take advantage of great deals which can save you up to 50%.

5. Dining. Eat at local Mom & Pop restaurants in non-touristy parts of the city. The food is phenomenal and 1/3 of the price you will pay for average fare next to a famous monument.

6. Tours. Check out last-minute tours on Viator. This site is great and they usually have tours that are 20% off the day before or of.

7. Consider a cruise. It’s an all-inclusive which makes it cheaper than doing a land-only vacation. Plus, it allows you to hit several locations in a short amount of time.

Bottom line…organization & planning will save you a good amount of money. Money that you can spend on your next vacation!