Running out of money while abroad is every traveler’s worst nightmare. The situation can be horrible enough to put a dampener on even the best laid plans.

In order to avoid running through all the cash set aside for a trip in a few days, it is advisable for travelers to draft a realistic budget. This budget will enable an individual to have an idea of how much cash to set aside for the trip, keep track of expenses and to choose the most cost-effective means of travel, food and accommodation. A travel budget makes it easy to regulate spending and allows individuals to make the most of the cash they worked so hard to save.

Running out of money

Several situations can result in a loss of funds whilst abroad. The most common include being robbed of all cash, ATM cards and other documents, overspending on food, accommodation or travel costs, local exchange rates that are higher than expected, ATM failure and medical emergencies while traveling.

Although being abroad without funds presents a difficult dilemma and can be downright debilitating, it does not necessarily mean that a trip has to be terminated. The most important thing for vacationers to do is to keep their wits. Though dire, the situation does have solutions.

There are various ways in which individuals can get cash back into their pockets when they find themselves broke in a foreign country. Being aware of the potential solutions would make it easier and less stressful to deal with the scenario, should it arise.

How to survive

The first step is for the individual to analyze the situation with a clear and open mind. Being broke abroad can mean one of two things: that the person has completely exhausted all funds that they had or that they have sufficient funds but lack access to them.

Solving these two problems requires slightly different approaches:

• Seeking temporary local work

This solution is ideal if the traveler is completely broke and has no reserve cash. No matter how remote or foreign a place is there is usually some opportunities to earn money for those who find themselves broke. For instance, such individuals can earn money through bartending, washing dishes, serving or busking on the streets. Some can even earn decent cash by teaching English as a foreign language.

• Cash transfers

Another solution to salvaging a doomed trip is by receiving a cash transfer. This is a viable option for those who have temporarily lost access to their cash. Nowadays there are a variety of firms, such as Trans-fast, offering reliable, secure and fast money transfer services. The travelers can ask their friends or relatives back home to transfer money to them. They can then pick up the remittance in cash or they can have the funds transferred directly into their bank accounts.

If all else fails, vacationers still have the option of asking their local embassies for help. Most embassies can loan money to their nationals abroad to cover the costs of getting back home.

So, you want to get the best deal on your travel money and ensure your money is safe and working hard for you whilst abroad?  Holidays are expensive enough as it is so it makes sense to take some precautions and do a little planning when it comes to exchanging, carrying and spending your cash abroad.

1. Take A Combination Of Cash And Cards

When travelling to foreign climes, it’s a good idea to take a mixture of foreign currency and debit and credit cards so that you are prepared for all possibilities. For example, some vendors abroad may not accept cards or you might not have enough cash to cover that big shopping purchase.

Take care with your cards and inform your bank that you are travelling in case they put a stop on your card whilst abroad. Take photocopies of your cards and keep your provider’s emergency number safe in case you lose your card or have your personal belongings stolen.

2.  Remember The Exchange Rate!

Many people don’t take a second glance at the exchange rate when changing their money and certainly many don’t think of comparing exchange rates before they travel.  But in doing so, you could save yourself a significant amount of money especially if you plan to change up large sums.  Most foreign exchange companies today offer 0% commission deals so ignore this – it’s really not that important.  What is important is the actual exchange rate you are being offered.

If you are thinking of exchanging money at your bank you might want to think again. Their exchange rate might be up to 5% different to that of a foreign exchange broker who has access to live market rates.

3.  Put Your Kids On A Leash! 

When you’re travelling with kids, holiday expenses can really spiral out of control! Those snacks, souvenirs, inflatables for the pool and fairground rides can eat into your budget really quickly.  To keep a tight rein on your holiday budget, why not consider giving your children a set allowance each day? This will not only help you to keep your money in check but will also teach your children that money doesn’t grow on trees and that they need to budget too.

4.  Pick A Card, But Not Just Any Card

On holiday it’s easy to forget about a budget and to be tempted by sheer overseas indulgence. And if you take a big arsenal of credit cards with you, you could end up spending more than you bargained for.  There is no problem with spreading your spend when abroad as long as you can pay off the balance when you get back home.  It’s also essential to check out the fees payable for international cash withdrawals or payments on your credit card.  If you really want to take a credit card with you for those little luxuries, shop around for a 0% credit card and limit yourself to a budget that you can afford to pay back quickly when you get back. It won’t be a good feeling paying off a credit card bill for a holiday you had years ago!

5.  Be A Savvy Duty Free Shopper

If you can’t ignore the lure of the duty free perfume, booze or tobacco, just be mindful that duty free stores are using a new trick to make more profits – giving you the option to pay for goods with your local currency.  This might seem convenient for you but there’s a hefty conversion fee to consider – this could be as high as 3%.  You’d be far better to pay for goods in any leftover currency you have or to use your debit card.

About the author: Born and raised in San Francisco, Aviva Tabachnik is the Head of Partnerships at MyTravelMoney, an OPP award winning travel comparison website. Aviva is a keen travel adventurist & semi professional dancer.

We all enjoy the chance to get away for a while with friends or family, whether it be a short city break or a fortnight on the beach. When all we need is a little rest and relaxation, the last thing we need during our precious time away is to worry about money, but for many of us this is the case.

Here, we consider several simple things you can do to make sure that your holiday isn’t ruined by financial worries.

Consider the exchange rate

Exchange rates fluctuate on a regular basis, changing the amount that it costs you to holiday in respective destinations. Keeping a close eye on the exchange rates at the time of planning your trip can therefore save you a considerable amount of money when the time comes to travel.

Rather than cutting down on the things you buy and the activities you take part in, securing a good exchange rate can ensure that you’re getting the most from your money, allowing you to spend it as you wish while you’re travelling.

Buy currency before you leave

The way in which you acquire your cash for your trip will have a bearing on the amount that you spend. If you run into poor exchange rates or high levels of commission when exchanging your currency, you can easily end up spending more than you need to while you’re away.

The important thing to know is that exchanges at the airport will usually offer some of the worst rates, or they will charge you a hefty commission for your currency. The best option is to allow plenty of time before you leave to compare the rates of exchange and commission at your local outlets.

Acquiring your currency in advance will give you plenty of options and will help to ensure that you find the best possible rate.

Know your options

When you arrive at your holiday destination, you’ll probably need to top up your cash, or to use a card for your spending. Taking an American Express Credit Card, for example, can make life easier, allowing you to manage your finances online or even on your mobile.

This will ensure that you are able to keep an eye on your finances throughout your trip, helping you stay within your spending budget from beginning to end.

When it comes to staying safe, it doesn’t take a rocket scientist to tell you whether something is dangerous or not. When it comes to most accidents that take place overseas, it is more likely than not a combination of a) alcohol and/or b) stupidity. The best way to protect your life while on an adventure in Asia, travellers need to use a little common sense, before attempting to drunkenly recreate that scene from Titanic with Leonardo DiCaprio and Kate Winslett on the bow of a banana boat. It’s also important to read up on local laws prior to travelling. Police at home may give you a slap over the wrist for a small amount of drugs, but in Asia could see you come face-to-face with a firing squad or spending the rest of your life behind bars. Not a good way to end a holiday, right?

Carrying or using drugs is very, very risky and the laws on both trafficking and the use of illegal narcotics are worlds apart from those at home. While the laws of most Western countries take the ‘harm minimisation’ stance and aim to protect the health of drug users, all countries throughout Asia have the death penalty in place as an option to sentence would-be traffickers. Do what your mother says and stay away from drugs, and do not carry drugs for anyone else! Even if they pay you enough to buy your own Jetski! When you carry drugs for someone else – even if you do not profit out of it – that’s called trafficking, and Asian countries don’t let traffickers off too lightly.

The first thing that will save your life/get you out of trouble/prevent you from losing wads of your well-saved money is – common sense! If things sound dangerous, they generally are. If things sound risky, they generally are. If things sound too good to be true, nine-tenths of the time, they generally are! Scams don’t just happen in Asia, but all over the world. In Asia, scammers generally target tourists as they are often viewed as easy targets. Many scams involve gaining the trust of the potential victim, so if a fairly random person begins to act super nice to you – remember that no one is invulnerable to scammers, especially you.

Always be wary of other people and make sure you do not cause offense. Across all Asian cultures, the concept of ‘face’, ‘saving face’ and ‘losing’ face relates closely to what we refer to as ‘Dignity’. Dignity is of course important to westerners, but not compared to the complete and utter seriousness of the consequences of losing face in Asia. It is important when dealing with authorities, police or anyone to treat them with respect, and do not question their authority, as this could potentially make them feel like they have lost face – ultimately creating a worse set of consequences for you.

If you use common sense and logic while when travelling throughout Asia, the biggest cause for concern should only be minor interruptions, such as having the runs, sunburn, or that splitting headache from drinking too much Tiger Beer!

This is a guest article from Andrew Wang who blogs about saving money.