This is really two questions:  How much cash to safely carry and how much to withdraw in one ATM transaction to minimize fees.  I usually withdraw the equivalent of US $200 at a time.  I carry the equivalent of $20 to $50 depending on my plans for the day in my purse — the rest is in my money belt.

You can easily get local currancy from the ATM in any country.  The same situation applies.

A lot of it depends on your bank as to what to withdraw.  $200 US won’t go far as $150 euro or so if you are paying everything in cash.  A lot of banks charge high rates to use cards overseas.  They will charge anywhere from nothing to 5 and 10 dollars per withdraw so if you must make 20 withdraws while in Europe it all adds up.  I tried to take out all I would need in a particular country or city.  Usually around 300 euros but walk around only with small bills in a wallet and lock up the rest or wear it in a money belt.  Cards are basically not needed because they can cause serious troubles if they get stolen and many things cost extra if you use a card

i took $6000 in cash. (was that stupid? ) there was never a point where i felt like i was in danger of having it stolen or lost. i never even bothered with a money belt.

If you don’t use a moneybelt, you’re just asking for it, IMO []
 
I would always take out like 2 or 300 bucks at a time so you konw, 10 euros []
 
I actually kind of use cash as something of a “last resort;” I found that credit cards work a lot easier, you don’t have to keep going back to the ATM, and as long as you don’t have a crazy company, they only add like 3% to what you spend. Sucks, but you pay for the convenience. Some places obviously this doesn’t work as well… if you’re in the back country mountains of Austria, say, you won’t be whipping out the plastic … but in cities and towns, I’ve never had anyone say “nein” to a credit card []

The exact figures will depend on your bank and your credit card, but this is how it works for me.
 
If I go to an ATM, I pay $5 per withdrawal, plus a 2.5% fee over the interbank rate.
 
If I pay by credit card, I pay 2.5% over the interbank rate.
 
So for these two examples, credit card is cheaper.
 
But some hotels or hostels offer a discount for paying in cash, in which case that might be advisable.
 
For the few people on this board who live in Vancouver, you can use this place to exchange currency, where the rates are approximately 2% over the interbank rate.
http://www.vbce.info/
 
The only problem with this place is that I don’t consider it wise to consider huge sums of money around, so there’s only so much you will want to exchange in advance of your trip. But for me it is a better deal than either an ATM or credit card.
 
 

Just an added question about a money belt.  Do you where it under your clothes at all times?  Just wondering because being a girl, we don’t always were the baggiest clothing…not that I’m wearing anything skin tight in Europe but ya know, shirts and sweaters are fitted.  Any recommendations?  I know they advise you to sleep wearing your money belt because the safest place is on you so that won’t be a problem.  Just wondering about the day time. 

skrait23,
My money belt stays on me 24/7 from the time I leave home until I return. It should have items that you must not loose or have stolen.
For me that is my passport, visa, credit/debit cards, big money, rail pass, driver’s license, and important phone numbers. I take it to the shower in a zip bag.  I can loose everything except my money belt and still salvage my trip. Inconvenient, yes but think how bad it would be if you lost these items.
Take clothes that will allow you to use the money belt.

Yep, it takes some getting used to, so wear it at home for a few weeks before you leave. But then, don’t take it off unless you’re in the shower… in which case, hang it on the shower nozzle or something. Every year I hear about girls who lost everything on their trip because they got sick of wearing their moneybelt, and stuck it in their purse, or gave it to their boyfriend to hang on to. BAD IDEA, unless you want to become a statistic []. I’d imagine there’s nothing worse than being in a foreign land with no money, no way to get money, and no way to identify yourself to the authorities.