A few people have asked me lately how we deal with money and finances, traveling from country to country on a boat. It doesn’t grow on a tree, and I don’t want to give half of it away to credit card companies and banks!
First and foremost, we don’t store money on Brick House. If we are ever robbed, I want to be able to look our thieves in the eyes and tell them honestly that we have nearly no money to surrender to them. If we ever sink, I don’t want to see my money AND my home go down all at once! I wish we could say we have a million bucks or gold bullion in the bilge but we don’t!
Like most people on land, we use credit and debit cards, and a few other tools to be sure we don’t get stranded. There are some difference though, since we frequently move from country to country, all with their own nuances.
FINANCIAL TOOL #1
First, for cash withdrawals, at ATMs which are in almost every location that has a “cash” economy, and even a trickle of tourists, we use our long time bank debit/credit card. It gives us a good exchange rate on foreign country withdrawals, so we use this one card for small (and larger) withdrawals when we are in a country that doesn’t use credit cards for purchases. The bank refunds any charges that the ATM charges, though I am sure some slip through the crack. We keep very little…like under $1000 in that account so that if we are ever held up at an ATM somewhere, there simply is not ALL of my money ready to dispense. We know one cruiser who had no limit and got stuck with about $10,000 usd of a foreign currency that was of little use elsewhere in the world. He got the zeros wrong…he only wanted $100.usd equivalent!
Most ATMs have a limit anyways, but some would let you do this maximum repeatedly, which isn’t any real protection. Our bank let us previously choose what the maximum amount in a 24 hour day that it will allow us be able to withdraw. However we still keep a maximum of $1000 in it, so that, no matter if the other safeguards work or not, we won’t go over $1000 if someone holds us up at an ATM machine or gets access with our card. $1000 would of course seriously hurt, but we wouldn’t be destitute on the street. Also if our PIN is lifted by some clever hacker, they wouldn’t get too too far too fast.
My bank has email/SMS alerts that go to my smartphone the moment a withdrawal or purchase is made over $1. So unless I was at Sea, I would know right away if something was awry.
To be sure I always have money in this account, I make manually scheduled small transfers from other accounts in to that account as needed. The terms of this debit/credit card is not something offered to new customers so I won’t worry about telling you about which bank it is…(also for unknown security reasons), but I suffer NO foreign currency withdrawal fees, the exchange rate is very desirable, and any ATM charges made by the foreign bank of automatically refunded. My research has shown that Fidelity, Bank of America, and USAA offer the best accounts with debit cards for this purpose but I’d urge you to check with your existing long term bank first. Your loyalty may pay off when you describe what you need. For us, this was our best option. You definitely want a bank that will let you withdraw your money from a foreign ATM with little or no fees. I actually write a code on my card to remind both of us that this card is ONLY for withdrawals…NOT for purchases! The Refund of foreign ATM charges are important because some ATMs over seas actually only allow very small withdrawals forcing you to use your card 10 times to get the money you need. $2.50 or $5.00 ATM charges per transaction could add up very quickly in this situation!
My bank offers excellent online tools including depositing checks by images, and paying bills online. So when I receive a check for something, usually through my Florida forwarding address, I can quickly get them deposited. I can snap photos of the check, though sometimes I have to print it out, and I can sign and deposit it all electronically. I can pay any bills I have in the USA electronically. I can transfer money between accounts as needed etc.
I automatically schedule minimum payments to go out monthly to credit card companies and other monthly bills that I have. This way if I am out of range, my minimum payment is always made while I am out on the blue yonder or are simply having too much fun and miss a due date. Interest rates and penalties for being late on even one payment can add up very quickly!
You MUST choose your bank and set this up before you leave The USA. Make sure you find a bank that offers very low or preferably NO Foreign ATM fees. Certainly look for a 1% charge or lower! And make sure they refund any charges ATMs overseas charge you from their side! If you do nothing else financially before you go…make sure your bank is going to work both electronically and at foreign ATMs before you leave! You worked hard for your cruising kitty…don’t share 1% or more of it back to the bank who has the privilege of holding it (and making money with it) for you!!
IMPORTANT! Do NOT make purchases with this same card. If the card is compromised…this will leave you potentially more “stranded” than any other financial tool I mention here. Make these 2 or more separate cards. Have backups, just like you do for other systems on your boat.
FINANCIAL TOOL #2
We have a second credit card that we have had for a few years now that I think is probably the best credit card we have ever had. I research these kinds of things to death, and this one not only offers the most benefits and a great sign up bonus, but is also a very flexible company to work with, while maintaining excellent security. We use it ONLY for purchases as withdrawals of foreign currency would have some associated fees, and my above card takes care of that need. This card from Chase has the best of everything that we need as cruisers, EXCEPT withdrawals. It is called the Chase Sapphire Preferred Visa Card. We use this card ONLY for purchases since withdrawals don’t offer the benefits my bank does. Here is why I recommend it..
- Great Sign up Bonus! You earn Ultimate Rewards points (one of the most valuable benefits to me…I have already flown us both home and back for free using just the bonus points I got from signing up and making one big purchase on it!) 50,000 just for signing up and spending $2000 in the first few months. Get Your own 50,000 Points Here
- My purchases on dining and travel earn double points. This includes expenses like food and grocery delivery services, tolls, UBER and more. This is a lot in some country, not so much in others.
- No foreign transaction fees…This is BIG for us! (Remember this means on purchase NOT withdrawals!)
- Fantastic Exchange rates
- Chip and Signature Technology, which provides better security and wider acceptance when traveling overseas. This is also big…some countries will not even take a Card that doesn’t have this chip! Not so important in the USA…but extremely popular in most other parts of the world now!
- Primary rental car insurance, which can keep you from having to file a claim with our personal insurance, that we don’t even have because we don’t own a car, for damages to a rental car. Nice to know this is covered. We rent cars all over the world!
- Trip cancellation/Interruption Insurance
- Baggage Delay Insurance (for trips home or land travel)
- Trip Delay Insurance
- Purchase Protection
- Extended Warranty Protection
And again, 50,000 Points good for many many airlines! You don’t have to choose which airline til it’s time to travel! And if you buy the ticket on their website, the points actually count as dollar for dollar, PLUS 10% more towards that purchase. So you can find a great deal, and then it becomes 10% better! And their prices are the same or better as everywhere else. This is a BIG bonus for us since the best airline to use differs as we travel around. Why lock in to one airline, and then when you need it, that airline doesn’t service where you are!?!
Sign up Here for this card. It is the perfect card for a roaming cruiser as far as I can tell after so much looking!
Like with everything sailing, we DO carry a third credit cards too. It’s a distance second choice for PURCHASES, but I like to have it primarily for online purchases…one that if it is compromised, it is not going to paralyze us on the ground. For this card, I have chosen the Chase Explorer Card. Here are the benefits of this Card.
-40,000 Sign up bonus after spending $2000 in the first 3 months(easy) , plus for a limited time only, and extra 25,000 points is spend $10000 in the first 6 months (harder) The points are good on United Airlines and it’s Star Alliance partners only, unlike the card above. You get double and triple miles on various kinds of purchases. Apply Here, Today, to Get the Bonus Miles too! Limited Time
-Free checked bag on United Airlines — a savings of up to $120 per roundtrip for cardmember and one 1 companions
-25% back on United Airlines inflight purchase
-No foreign transaction fees
-Two United ClubSM passes — over a $100 value. We always take the longest, most round about, longest layover flights to save a few dollars traveling back to see family. These passes are a godsend on a long flight to or from!
-Baggage Delay Insurance
-Lost Luggage Reimbursement. What my bag with boat part is lost?
–Trip Delay Reimbursement
-Trip Cancellation/Interruption Insurance
-Travel Accident Insurance
-Auto Rental Collision Damage Waiver
-Zero Liability Protection (Important since this is the card we use for online purchases)
-Emergency card replacement, not just to home address, but to anywhere in world, in one business day.
Again, I consider this card GREATLY inferior to the Chase Saphirre Card listed above. The points are only good on United Airlines and it’s Star Alliance Partners. It’s a good backup card to have, far superior to others I have gotten, if for nothing else than making online purchases that are a bit riskier than usual. If it is compromised it has excellent fraud protection, and they are willing to send me a new card overseas instead of to my US home address. It’s a great backup card.
OUR THIRD FINANCIAL TOOL
Sometimes you want to buy something in a neighboring country to where you are. Or sometimes you want to buy something from a capital city of the country you are in, and that is a long ways away from you. They don’t take credit cards….you don’t want to send a box of cash through the mail, you don’t want to fly there to hand them the box of cash, they don’t take checks, and…What do you do?
What I do is use my account at TransferWise. It allows me to easily do a bank transfer without incurring all those nasty charges my home bank charges for the privilege of converting my cash and actually sending it overseas for me. It usually saves me a minimum of $35 and often much more than that, not to mention the time it saves.
Do not wait until you need this tool to sign up for it though…It takes a bit to set it up. It’s all done online, so easy, but it does take time for things to get set up properly and securely. I have used this for a few years now, sending hundreds if not thousands of dollars for vendors and it’s gone smoothly and quickly every time. We also know other cruisers who transfer money to their extended family in the Philippines, in the US and other. It’s often almost instantly that the money lands in the recipients account and you are on your way to getting what you need.
Another great use for TransferWise has been when I buy or sell something from/to another cruiser. They can or I can pay in my own currency and they get the currency they need. It often happens that we are leaving a country and don’t need, say an air conditioner any more, since we will no longer be at marinas, and the distances are too great to lug this thing around. We are leaving tomorrow and don’t want a wad of local cash that is useless in the next country…instead, we get US dollars from a Swedish couple. For example…
Sign up for TransferWise here so it ready when you need it
UPDATE: It is extremely important to use a phone number for Transferwise that you will carry with you around the world…If you should forget you password to get in, you will need a code sent to you phone. If you use a phone number from Malaysia, and then sailed to Mauritius for example, and hence do not have that phone number anymore…you could be Locked out forever. This is especially problematic if you carry a balance of a foreign currency in that account! There may be other ways, but there will be some aggravation!
Get a free GOOGLE VOICE number or other solution before you get Transferwise! Make sure it can receive SMS messages as well as phone calls!
A couple of tricks we have to play…
When we apply for the card, do NOT use your Florida Green Cove Springs address. They don’t approve you instantly, and you are then asked to supply a utility bill to prove you “live” there. Use that other address you have and it approves instantly.
When we sign up for the card, they will only send to our US address. And you have to make your purchases in the first few months to get all those great bonus points. So how do you get your hands on the card to do so?? Quickly? Well this is a little risky. We get the number…but not the card…and we activate it to make our purchase. And we make an online purchase such as paying taxes, or a part for the boat…to get that minimum purchase made as soon as possible to make sure we get the bonus miles. THEN we deal with getting the card..either through mail, or someone who comes to visit, or when we manage to go home to get it.
Also…if you then LOSE this card, after you have your miles secured and all, they are excellent at replacing your card when you are traveling. They send it at no expense to you, to whatever country you provide and address for. Exceptional customer service all the way around.
Also…important…for both cards we have…we call them and update our travel plans frequently. They know this country and the next few we will go to. We once showed up, to Singapore actually…and we actually had to beg money from the richer than us residents there, just to get A bus to the airport which would have some ATM machines that would recognize our card. When I got those and they didn’t work there either, I realized I had forgotten to update that travel plan. Customer Service answered my call quickly, from the airport, and got our card working again. It would have been horrible to have to beg for a bus fare back to the boat! Call your card issuers regularly to let them know where you are! Chase Sapphire has an excellent tool in their system to make this a very easy phone call day or night for customers.
Good luck building your own arsenal of financial tools. We hope this gives you some ideas…please comment below if you have found others that work too, ok?
These are the tools I have in my arsenal to be sure I am solvent in every country I visit…
How we Got the Money to go Cruising, and how you can get the money to go cruising
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