Nothing ruins a holiday quicker than running out of money...or losing your wallet and passport. Below are some tips on how to ensure you get the most out of your home currency, as well as some smart ways to pay for items that will reduce your exchange costs.

Tip 1: Local currency: These days you really don't need a large amount of local currency. The right card (with the right features) will often be a lot more beneficial. So where possible only carry a small amount of cash, preferably less than the amount your travel insurance covers.

Tip 2: When you do have to change currencies: Avoid commission free brokers. While you don't pay a commission you will almost definitely pay for the trade via a very bad exchange rate. The best thing to do is to ask how much of the local currency you will get for one US dollar and work it out yourself from there.

Tip 3: Use holiday pre paid cards: These are a great invention. You put a selected amount of money on one of these pre-paid cards and use it when you are on holiday. If you lose it, it isn't linked to any of your other accounts so is a lot safer.

Tip 4: Check out the currencies before you travel: If you are not too fussed about where you travel to, but just want a vacation, then check out the currency conversion rates before you book. If you find a country where the exchange rate is really good, then travel there! You will also get to visit some amazing places that you otherwise may not have travelled to.

So there you have it, four tips to help you manage your money when on a vacation. Definately better then spending the last few days of your trip all crammed into a hostel room!

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