Great advice, Shanti! I am a huge Rick Steves Fan (Back Door to Europe books and PBS shows), and before we visited Europe some years back, I was scouring Rick's books and DVD's for great advice. He recommended something I had always thought kind of well....odd & silly.... a money belt. After doing some additional research, and finding a very slim cloth money belt that as a woman I could easily slip beneath the waist of my trousers, I bought one. And I used that sucker! Yes, it felt a little odd to pull it out and unzip it at times, but let me tell you, I NEVER once had to even think, "Is my backpack/handbag zipped up?", "Is my bag one that's strap is cut proof from a pickpocket?", "Am I holding my bag close enough to the front of my body for no one to access it", or worry about leaving it hanging on a chair in a cafe somewhere or on a train or bus.
I kept my passport, credit cards, all I.D. and cash that wasn't pocket change in that belt. And it gave me HUGE peace of mind. I would definitely do the money belt thing again.