Serena,
In previous posts, one of our members, Churrocaliente, shared with us the Victoria's Secret Wonder Bra has a pocket which enables one to hide extra credit cards, cash, documents, etc.
You may want to take a look at these as well.

It was a very liely thread. If I find it I will post it.

I don't think carrying a "decoy" wallet is a good idea. The point is that you don't want to attract ANY attention, even if the attention is focused on a decoy wallet/monopoly money.
It is a VERY difficult subject. I think Passport, Credit card etc should be on you (for I.D, shopping, cashing cheques etc)but secured. I like to have cash in my front pocket for small items, tickets, snacks etc. This way if I am also threatened, I can hand over my money by just reaching into my pocket.
I like the "money belt" idea but don't dig for it every time you want to buy something. Be ready for purchases, plan a bit ahead. If you do need to get to your money belt, go to the wash room, take out what you need and put the rest away.

One thing no one is mentioning here (and I do not promote it) is pepper spray. This could be used in extreme emergency, like the mugging described above. I am sure it can be purchased in Madrid. Any ideas???

Before anyone thinks about buying a "self-defense" spray to carry, many types that can be purchased in the U.S. are banned in Europe and being caught in possession, let alone the use, can lead to arrest.

Just back from two weeks in Spain.
I feel a money belt or some kind of security pouch, wherever you ware it, is a must. Inside goes everything you can't afford to loose: passport, cash reserves, tickets, credit card #s, extra credit card, ATM card etc. In your purse, or better yet in your pockets carry only spending money for the day.
My wife had here backpack picked at the Banco de Espana metro stop. This very smooth operation involved two well-dressed women who appeared to be looking at a tourist map of Madrid whenever she looked at them. She dismissed them as possible threats thereby giving them the opening they needed. Fortunately all here valuables were in her money belt and all they got was an empty soft purse.
Also stay away from the doors on buses and the metro. This is snatch and run territory.

My last 2 trips were to Argentina and Colombia (2 countries notorious for pickpockets). I use a safety pouch that loops around your belt and slips inside your pants (with loose pants totally unoticeable). Just think ahead when you are going to have to use it and you can discretely slip it out. With a little creativity the loop can be made to look like your pants belt loop. I carry my essentials (passport photocopy/credit card/ ATM/ back up cash) in there, and then in my front pants pocket I have a cheap nylon wallet with a small amount of local money (even throw a dollar bill in for effect) and an expired credit card. That way in the unfortunate case of a mugging I can hand that over and get the heck out of there. I have started using a messenger bag instead of a backpack because: a) the strap is thick and wide, b)you carry it across your chest and under your arm and c) I see them on people all over the world and I feel it doesn't scream tourist as much as some of the other options for men.

Excellent advice!! I like the last post. A cheap wallet, some expired cards and some filler token bills. Hand it over to the thief IN CASE OF EMERGENCY. The money belt with the loop seems like a great option. As picky as I am, I might even try that one this summer.

Great string of advice!

Electracity:
The pouch is made by Eagle Creek and I've seen it on Magellan's and REI's website. Leave for Madrid tomorrow ... so excited!

To US People
You can in the US buy a bra with pockets.
The pockets are big enough for quiet a lot of money. There were a long explanation on this site about 3 month ago.
Ask againe and maybe some one remember more
DaisyE

But what I want to know is DO THEY MAKE THESE FOR MEN because I'd rather leave my purse at home. I'll need a 38C, I think.

Saludos, MadridMan