One of my favorite quotes from Tim Ferris is Reality is Negotiable. Unfortunately, not everything in life is negotiable so today’s post is about the reality of money.

If you live in the US and love to travel, you probably check the Euro rate from time to time.

So far 2010 has shown to be a better year for the US Dollar, (better than most of 2008-2009). How long will this trend continue or what exactly is keeping the US dollar up is the subject of numerous financial sites and newsletters.

Some think that the situation in Greece is causing investors to rush to the dollar and that the current trend will likely continue through 2010. Others believe that the US dollar may drop further in the coming months.

Amidst this uncertainty you may be wondering, should I buy Euros now?

Surprisingly, not much has changed since the day I wrote about this topic (on December 2008), so the following tips still apply:

1. “Unless your name is George Soros, do not buy large amounts of foreign currency”.

2. Buy only what you need for an upcoming trip and use ATM and credit cards for the remaining expenses. For instance, if you’re traveling from the U.S. or Canada, probably your two biggest expenses will be airfare and auto rental. It is usually best to pay for these items via credit card prior to departure. The remaining expenses such as lodging, meals and gas you may want to pay for with a credit or debit card. Use cash for all miscellaneous items (boat rides, snacks, train or bus rides, cyber cafes etc.)

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If you think you can’t afford a Corsica Vacation…

In Corsica as in all of continental France, room taxes are almost negligible. For instance, if the room rate is 88€ a night, the room tax is only 1.22€.

In contrast, hotel taxes and other mandatory room charges in the U.S. (like parking) can add an additional 13-15% to the total cost of your hotel stay. Room taxes can easily add an extra $10-15 a day to the total room rate. As with other expenditures, be sure to consider taxes when determining the true cost of a vacation.

Related Post

Buying Euros

Corsica Travel Guide

Filed under: Corsica Travel