Money, money, money

Unfortunately, travelling costs money. Sometimes lots of it. But carrying lots of cash is obviously not the best idea. I heard a story about a woman who arrived in Delhi and had her money belt stolen before she even left the airport. All the money for her trip was in that moneybelt. She turned around and got back on the plane home; her trip -- and with it six months of savings -- was finished before it even began.
How to carry your cash? It used to be that travellers cheques were the best choice. But you're often charged a fee to buy them and a fee to cash them in. In places like India, there's a long complicated process involving multiple forms and waiting in line (sometimes for a long time) to cash a travellers cheque. It is, quite simply, a pain in the ass. Consider too that its not as easy as you might think to get your money back if they're stolen. Some travel companions of ours had their money belts stolen while travelling. The travellers cheque company wouldn't give them a refund without seeing their identification ... which, of course, was also stolen. It was easier for them to get a new passport than replace their travellers cheques! Most people don't realize that you usually need the reciept issued when you buy the travelers cheques; the cheque numbers alone aren't enough. In short, there really isn't much point to using travellers cheques these days when there are other, better options.
It is much easier to simply carry your ATM card with you. Most places have bank machines everywhere and there's the added benefit of usually getting a better exchange rate than if you were to change cash directly.
There's some things to consider before departing with your ATM card in hand, however:
-What international network does your card use? Most use PLUS or CIRRUS (the logo should be printed on your card and is also on the ATM machines). Most ATM machines abroad take both, but not all. Know what network your card uses and see if your bank can tell you if it is available in your destination.
-Can your card access more than one account (such as a savings and a chequing account)? You may not know which account you're withdrawing from while abroad, if that matters to you. Selecting the "savings" button on a foreign ATM machine may withdraw money from your "chequing" and visa versa.
-Keep your ATM reciepts. Some countries will require them to change unused money when you leave the country. You'll also want to double check that the amounts you withdraw match your bank statements. If you throw out the reciepts, destroy them first. Many will print your entire ATM number on them ... a pretty big bonus for someone snooping through your garbage can who knows what to do with it.
-If your bank has an internet banking option, use it. It's a good way to check your withdrawals.
-Some countries don't have ATM machines. They're rare, but they do exist. Lao, for example, has only one. Cash advances on a Visa card are the better option in these places.
-In some places, your ATM card might not work. In India, we searched for days to find a machine that would work, though many used the right network. Have a backup plan in case your card doesn't work ... and keep trying different machines if you don't have luck the first try.

Lastly, you should also carry a credit card with you. Visa seems to be the most widely accepted. High end shops, restaurants, and travel agencies will accept it. In many places, you'll be charged extra when you use it. 3% added to your bill seems to be pretty standard in SE Asia. I'd only use it in the most reputable places ... its pretty easy for someone to copy your credit card number and use it fraudulently. Find out how to check your visa transactions online to ensure someone isn't using your card without your knowledge. Get your Visa card setup for cash advances and ensure you know your PIN number. If your ATM card doesn't work, its always possible to get a cash advance on your credit card either at an ATM machine or by going into the bank.

Finally, its not a bad idea to carry a small amount of cash in a currency like Euros, Pounds, or US dollars (these days, the US $ is depreciating quickly so I'd recommend euros as a better choice). It can be exchanged pretty much anywhere and might be useful in an emergency. I wouldn't carry more than about $100 US.

There's more to be said about security of your cards and such, but I'll save that for another day.