A fist full of traveller's cheques.
I'm astonished to see how weak the dollar is going against the pound. I understand that the expenditure on the war against Iraq and the subsequent reconstruction is bound to have some effect, but I'm not used to seeing the pound being worth $1.79.

I recall over a decade ago working in Midland Bank (now HSBC) and seeing sterling rise to $1.99. I thought that it was ridiculous at the time. I wondered whether it was worth speculating on a dollar recovery, but couldn't figure out a way of doing it. It briefly entered my mind to buy US$ traveller's cheques from Thomas Cook or American Express with the intention of selling them back when the pound weakened.

I quickly dismissed the idea because it would have involved paying a spread on both sides of the transaction. The pound soon fell back down as I expected it to. It was only a few months later, when I was planning holidays in Europe that it dawned on me that I could have bought US$ travellers cheques and kept them for my next holiday, regardless of whether I was going to the US or not. Everywhere accepts them.

I have no crystal ball, but if you know that you are going abroad this year and don't think that sterling can hold at $1.79, why not save some money by buying US$ traveller's cheques now? Sadly I can't plan that far ahead, as everything in my life is 'subject to solvency', but some of you lucky people with regular salaries might be able to save a few quid on your Sangria.