Everybody has their own opinions about how to travel with money.
My opinion (and everybody is entitled to my opinion) is to bring a combination of Travelers' Cheques, a good amount of cash, and different credit cards.
Traveler's Cheques: American Express.
Credit cards: Bring both Master Card/Visa and American Express. Remember to alert your banks of your travel plans. Ofen they block your account if they suspect fraudulent purchases. I can't tell you how many times this has happened to me.
Cash: Bring both large bills and a lot of one-dollar bills. You can use the large bills for large purchases. The one-dollar bills come in real handy when you want to tip someone. Keep the small money in your pocket. Tuck away the large bills in a secret pouch. When carrying a lot of cash, it's so important to keep it ON you. Not in a shoulder bag, not in your pockets. I always travel with a hidden money pouch. Something like this from TravelSmith.com works well:

This money pouch is pretty ugly, but that's okay. You wear it under your clothes. Thanks for visiting my blog. Namaste!
Money often costs too much.
~Ralph Waldo Emerson
~Ralph Waldo Emerson
