In years gone by when we were nervous travellers we always took travellers cheques. These days and a bit more experienced we now only take AUD$ and place them in the hotel room safe. We always carry credit cards too.
A couple of times I have placed $100 in separate envelopes which were numbered and we changed one at a time in numerical order. However, my husband has said he doesn't want to do it again as we stay in reputable hotels and have never had a problem.
I still think the envelopes are a good idea.
Cheers Geri