FINANCES

CREATING A BUDGET

The cost of traveling abroad varies considerably depending on the country you plan to visit, the value of a U.S. dollar in that country, how you get there and travel around once there, where you eat, and where you stay. Before you go, do some research on the cost of living in the country to which you're traveling; calculate a reasonable per-day budget that will meet your specific needs; then add a bit more to cover those unforeseen expenses.

EXCHANGE RATE

Become familiar with the value of the currency in the country to which you are traveling compared to that of the U.S. dollar. With a little research on exchange rates, you'll have a better idea of what things actually cost. You also may want to investigate the difference in the exchange rate if you use your credit card or debit card to make purchases abroad instead of converting U.S. dollars to foreign currency after you arrive. You may find that you'll get more favorable terms using your cards and have less cash to carry and risk losing.

Note that currency exchange rates are not constant. The New York Times and similar publications publish exchange rates daily. You also may reference www.x-rates.com or www.oanda.com for up to the minute exchange rates for the country to which you are traveling.

MONEY

As noted in the section on SAFETY, do not carry excessive amounts of cash. Have a small amount available for tipping, transportation, and emergencies. Remember, the more money you have on your person, the more you will lose if it is stolen. And lost or stolen cash can't be replaced.

Also, in order to avoid violating local laws, iNext recommends that you deal only with authorized agents when you exchange U.S. dollars for local currency.

CREDIT CARDS

Credit cards are generally easy to use and widely accepted in other countries. Also, they can be easily replaced if lost or stolen. But before you depart the U.S., check with your card issuer to find out about the likely fees for foreign transactions (typically in the range of one to three percent) and any possible restrictions you may face abroad. Also remember that some foreign countries allow stores to impose an extra charge for credit card purchases.

Taking more than one credit card makes sense just in case one is lost or otherwise can't be used, such as if a company "blocks" part of your credit line to cover expected costs when you rent a car or check into a hotel, thus making that amount of credit unavailable to you. Also, it's a good idea to contact your card issuers before you go and let them know where and when you will be traveling. That way charges abroad won't be denied based on incorrect assumptions that your card has been stolen.

Note that a Visa, MasterCard, or American Express card also may be useful to obtain emergency funds or a cash advance, albeit with high interest rates. American Express cardholders may also cash personal checks drawn on their home bank accounts at an American Express office.

ATM/BANK CARDS

ATMs are common in many countries. Your ATM card is a recommended means of accessing funds when you're abroad. Generally, you get good exchange rates and you don't need to wait for the bank to open! Before you leave the U.S., find out how much your bank charges for international ATM fees.

For both credit cards and bankcards, inquire with the issuer to verify that the card is valid for an international banking system. Memorize your PIN in numbers, not letters; foreign phone pads are often configured differently.

PREPAID DEBIT CARDS

A prepaid debit card allows you to load a specific amount of money on the card for purchases and cash withdrawals from ATMs. It also may be possible for you to add funds to the card while abroad by phone or online. Be advised though that many prepaid cards come with an assortment of fees and may not always be accepted at all retail stores or banks.

TRAVELER'S CHECKS

Traveler's checks are also a safe and easy means of carrying funds. American Express and Visa are the most widely recognized brands. A distinct advantage of traveler's checks is that the issuing bank or agency provides refunds if the checks are lost or stolen. Of course, be sure to keep a list of your traveler's check numbers separate from the checks in the event that the checks are lost or you are a victim of theft.

If you decide to use traveler's checks, remember to buy them before you depart the U.S. and note that you will need to present your passport to cash a traveler's check when you're abroad.