If you have rarely traveled overseas there is a good chance that you have questions about how to handle your personal cash while you are trekking around to 11 different countries. If you have questions….Good! That means you’re thinking about the things that need to be thought about.
Below is some helpful information regarding money on the World Race that should hopefully address the most frequently asked questions.
How much personal spending money should I bring?
The best way to determine the answer to that is to look at your current spending habits. Are you a saver who loves a good thrift store and avoids going out to eat? Or do you fall into the more "money is made to be spent" philosophy? Try to think about what will be important to you out on the field. Are you going to want to go on frequent excursions on your days off? Do you have to have your Diet Coke and Peanut M &M’s regularly? Do you love to collect souvenirs? Are you going to want to send gifts back home to the states? These are the types of things that affect your WR spending habits. Here is a chart that might be able to help determine how much money will be appropriate for you:
For the Conservative Racer: $0-$900
It is technically possible to get through the whole WR without spending any of your own money but It's not recommended that you attempt to do so. There will inevitably be things that you will want or need to get through the year. However, you can get by on very little if you stick to a strict budget and pracitice excellent self discipline. While a year of saying no to a lot of extras can be very challenging, it can also be one of the most freeing experiences of your life.
For the Average Racer: $1000-$1400
Most Racers budget for about $100-$120 a month. While you won’t be able to indulge in everything that you might want on the Race, you’ll still be able to get American food every now and then, take a tour of the Pi Pi Islands in Thailand if the opportunity arises, and pick up some new duds along the along the way. The best way to approach this is to save up some months and plan to spend extra in others. For instance, try to spend little in Moldova so that you can have more financial liberty in Thailand (where you’ll want it!) Again, you'll have to practice discipline but this a great year to learn just how little you can live on and be happy with.
For the “YOLO” Racer: $1500+
If you're the type who has never really stayed within a buget and don't plan to start now then you'll need the extra cash to account for that. If you want to seize every opprtunity that comes your way and don't want to be hindered by lack of finances and if you know that you just cannot handle a steady diet of rice and beans, you'll need to bulk up your checking account.
Should I bring cash on the Race?
What are some options besides carrying cash?
It’s okay to have small stash of US cash that is well hidden but it’s not recommended that you carry all of your personal money in cash as that is a very easy to way to have it lost or stolen.
Personal Checking Account
Most everywhere you go businesses will take Visa. You can use your normal Visa debit or credit card to pay directly or to pull money from an ATM just like you do here in the states. You should talk to a representative from your local bank and ask them what their international banking policies are. Some banks have a lot of fees but some have very minimal fees. Find out how your bank operates and then you can decide if you want to use what you have or go with a different option.
*Be sure to talk to your bank and notify them of the specific countries you will be traveling to. This will ensure that they don’t freeze your account when they see transactions occurring in foreign countries.
Charles Schwab
Many Racers also choose to open a Charles Schwab account and it comes highly recommended! They are great for international transactions. You can give them a call or stop by a local branch to ask more questions and get yourself set up.
http://www.schwab.com/public/schwab/banking_lending
Visa Money Card
With the Visa Money Card you preload the card with a certain dollar amount and then treat it just like you would a regular debit or credit card. If the card is lost or stolen, you only lose the value that is on your card since it is not attached to a personal account. If you run out of money or get low, you can call and have more money transferred onto it. Talk to your local bank about getting set up with one of these cards or you can get one online.
http://usa.visa.com/personal/cards/prepaid/prepaid-card-faq.html
How do I handle my taxes and other bills while on the Race?
The best way to do this is to establish a Power of Attorney who can take care of things while you are away. Find someone that you can trust and get them set up with the necessary paperwork. Do NOT wait until the last minute to do this since there can be several steps involved and you don’t want to be rushed or stressed. Below are some websites that you might find helpful.
http://www.ehow.com/how_4500955_set-up-power-attorney.html
http://www.legalzoom.com/power-of-attorney/power-of-attorney-overview.html
Real Money Advice from Real Racers:
- Create a budget and STICK TO IT!
- When you first arrive in a country, pull out the money you want for that month and then only spend what you have. This will help you stay within budget and avoid frequent ATM fees.
- To reduce the temptation of buying up every pretty or cool trinket in sight, choose one small item that you can collect from each country such as earrings, bracelets, stickers, or patches.
- Spend less in some countries so that you can spend more in others. For instance, only spend $25 in Swaziland so that you can take advantage of some amazing opportunities in the Philippines.
- Practice self control with the little expenses like Coke and candy. It's easy to "nickel and dime" yourself into an empty bank account.
- Be okay with the personal money that you have and don't compare to what other people have. Comparison is the death of joy and gratitude.
- Ask the Lord what His expectations are for you these 11 months. It is His money so it's never a bad idea to ask Him how you should spend it.
- Try to spend your money on experiences instead of coffee or candy. You really CAN live without those things! If the chance to take a safari comes up, you'll want the budget to do it.
- Consider how your spending habits look to your ministry contacts and the local community. Do you look like a person who is trying to relate to the hearts of the people and be a part of their culture? Or do you appear to be a rich American on a cool trip? If you show off the fact that you have money, that is often what people will want from you rather than the Jesus inside you.
*If you have more question about personal spending money on the World Race, feel free to contact your Mobilizer. They are more than happy to help!!
