Reading about why someone might want to do a trip like ours is all well and good, but equally important is getting down to brass tacks and figuring out the financial side of things.  While there are those who set off into the world without a penny to their name and make their way just fine, that type of traveler is going to have a much harder time of it.  Getting your finances and budget in order can be the difference between wondering where your next meal is coming from and being able to afford that trip to the Galapagos that you’ve always dreamed of.  Alternatively, it can be the difference between having a great 3-month trip and having a great 18-month one.

The general thought process usually goes something like this:

Wow, 18 months is such a long time!

That must be expensive

A one-week vacation for two people costs, what, $2500?

18 months is about 78 weeks

$2500 * 78 = $195,000

Holy crap, they must be rich

So, first of all, let me say that I do not have $195,000 to my name.  Not even close.  If I did, we would have left a long time ago.

The point, as I’m sure you’ve already guessed, is that a trip like ours does not compare to a standard one-week resort vacation, either in terms of cost or experience.  We won’t be staying in all-inclusives, as I mentioned previously.  But that much is obvious, and thus is not a very useful tip.  So here are a few techniques/strategies/tips that we have used (and will use) to keep expenses down.

1)  Reduce or eliminate your financial obligations back home

A common reason often given for being unable to travel, or staying in a job one hates, is “I’ve got bills to pay.”  Well, there’s a simple (although not always easy) solution for that: just get rid of all your bills!  That’s a bit facetious, of course, but the smaller your obligations are, the more freedom you have.  Bridgette and I will have no rent or mortgage to pay, no credit card payments to worry about, and no utilities or memberships to pay up.  The car is paid off, and Bridgette has been kicking ass getting her student loans paid off; they should be down to zero by the time we leave.  Without these ties, we won’t have to worry about funneling money back home at any point; our day-to-day expenses will be more or less everything we have to worry about.

I realize it’s not that straightforward for everyone.  Some of you have mortgages, or kids, or credit card debt, or a hundred other little things piling up.  While there are no quick fixes, and, indeed, for many people, these are calculated obligations taken on intentionally, there are certainly ways to minimize the impact this can have on your potential travels.  If you have a mortgage, you can look into renting out your home during your travels using a service like HomeAway.  This can allow you to mitigate the cost of an extended trip by offering up your (presently unoccupied) home as a vacation rental for other travelers.  If you have credit card debt or student loans, don’t despair; even if you can’t pay them off entirely in the time frame you’re considering, with a little planning you can set aside enough money for the payments for the duration you’re planning to be gone, and set them up for auto-pay so you don’t have to give them a second thought during your adventure.  If you have kids, sorry, you’re screwed.  Kidding!  Kids can get a lot out of international travel, both socially and educationally, although there are certainly more aspects to consider.  Since I don’t have any youngins, I won’t speak to this topic much, except to say that there are plenty of families traveling the world with children of all ages in every configuration imaginable.  While there are always obstacles and obligations, it’s important not to let those become an absolute barrier.

2)  Take advantage of frequent flyer programs to get free airfare

This is a topic that I could go on about for hours.  I’m sure I will end up writing numerous posts about frequent flyer miles and the best strategies for both accumulating and spending them.  For now, suffice it to say, there are some great benefits that anyone can take advantage of that will result in free airfare to just about anywhere you want to go.

The most important point is to avoid being in debt to the credit card companies.  If you’re paying any interest on your credit card each month, then no amount of CC rewards will make up for the money you’re losing in that manner.  Therefore, a prerequisite to this advice is “don’t have credit card debt.”  Alternatively, “get out of credit card debt.”  Once you’re at that point (which is certainly easier said than done in some cases), you’re ready to start accruing miles.

Most airlines have a rewards program that lets you accumulate points (or “miles”) towards free airfare and/or upgrades on their flights.  The most straightforward way of doing so is simply by flying on that airline.  If you have a rewards account, you can plug that in any time you make a reservation and get points automatically added to your account.  This will eventually result in free flights.  However, aside from business travelers, not many people fly often enough for this to be beneficial.

The alternative?  Credit cards.  Many credit card programs are partnered with airlines to offer a signup bonus in the format “If you spend $X in the first Y months, you’ll receive Z miles!”  Normally the offer is somewhere around a $1000 spend over 3 months to get 30,000 bonus miles.  This can obviously vary wildly depending on the bank, credit card merchant, and airline, but the format is usually similar.  Often, this can be enough for two round-trip flights, four one-way flights, or one round-trip first-class flight.  Using these miles for your travels can alleviate the costs significantly.

3)  Keep expenses low on the road

While saving and managing your money properly before your trip is of utmost importance, if you’re not smart about how you handle your money while actually traveling, you can easily blow through your budget without realizing it.  This is another category that could easily be its own series of posts, but I’ll touch on a few main points here.

Stay in hostels!  While the monetary savings are the most obvious benefit (hostels in many parts of the world can be found for less than $10 USD per night), there are many intangible benefits as well.  Hostels tend to attract a younger, more adventurous crowd, so you are much more likely to meet people of a similar mindset.  It’s very easy to find people willing to spend a few hours, days, or even weeks exploring a new area with you.  Hostels often arrange social events such as pub crawls, cooking lessons, or excursions to nearby hotspots that make it easy as pie to meet some new friends that have interests in line with yours.  They also commonly have kitchens available for general use, which means you can pick up some groceries from the local market and make your own dinner, which usually turns out cheaper than going out to a local restaurant.

Take local transport.  Taking taxis everywhere may be the easiest thing to do, but it’s certainly not the cheapest.  A legitimate taxi will be much more expensive than the equivalent bus ride due to the fact that a bus can take dozens of people per trip, while a taxi can take only a few.  But more importantly, most taxis will have a “tourist price” that will be many times what a local would pay for the same distance.  While this can be mitigated somewhat by researching average fares for common trips, learning a bit of the local language, and just being amiable in general, there’s no getting around the fact that the bus is going to be cheaper.  In addition, this can often give you some unique insight into local life; you’re certainly not going to be running into any farmers, craftsmen, or holy men during your taxi ride, and why are you traveling to these places if not to experience something new?

Eat the street food.  While going out to a nice restaurant for some local cuisine is definitely a must-do in many locations, you can get just as authentic an experience (and a much cheaper one!) by frequenting some of the local food stalls.  This is generally the type of food people commonly eat in many places anyways, so not only are you stretching your budget, you’re more likely to rub elbows with the very people you’re there to visit.  Look for the busiest stalls; the more they’re selling, the more quickly their inventory is cycling, and the less likely you are to encounter food that has been sitting out for a while.

4)  Look into working as you go

What?!, I can hear you saying, I thought the whole point was to get AWAY from work!

While that is certainly true, there are a number of ways you can top off your savings account occasionally so that you can afford to travel even longer, while at the same time building up skills (and unique experiences) that you wouldn’t have otherwise.  This tends to be easier the longer you plan on staying in one place.  The more slowly you’re traveling, the more opportunities you’ll have to pick up some work along the way.  Here’s a few ideas to start with.

Work at a hostel in exchange for room and board.  In the majority of hostels, many jobs are done by other travelers just like you!  This is not generally paid work; rather, you’ll usually put in 2-3 hours of work per day and, in exchange, you’ll score a free bunk or room, as well as the right to share in any of the food the hostel provides.  Considering that lodging and food are two of the main expenses you’ll have to budget for while traveling, this can work out to make a large dent in your daily expenses.  You’ll be doing jobs like laundering the linens, cooking meals, cleaning the common areas, and even leading events like bar crawls and excursions to local sights.  The caveat here is that they are only going to be receptive to bringing you on if you’re planning on being in the area for at least a couple weeks, so this is a good option when you find a place you love!

Turn your hobby into income.  If you’re an enthusiast of adventure sports, this may be a good option for you.  Often, companies that offer excursions for activities like SCUBA diving, white water rafting, skiing, etc., are looking for guides to work on a shorter-term basis.  This type of work is frequently seasonal, so they may bring on a few extra workers for their busiest times of the year.  This can be a great way to do what you love while making a bit of cash that you can use for further travel once the season ends.  Depending on the activity (and the country), you may need to acquire certifications or licenses in order to be eligible, so be sure to look into that before packing your bags.

Teach English as a second language.  This one is definitely more of a commitment than the other options, especially if you’re going the traditional route of teaching for a full school year, but it can be a great way to jump-start your travel fund and see a unique side of a foreign culture that you may not get to experience otherwise.  These jobs are abundant in Southeast Asia, although you can find them in Europe or South America as well if you’re willing to put in a bit of work.  So what do you need in order to land this type of gig?  Well, for one, you need to speak English!  If you’re reading this, I’ll assume you’ve got that part down pat.  The next step is generally to get a certificate, the most common of which is the TEFL.  This involves some coursework, which can be completed either online or in-person, and generally costs a few hundred dollars (although that cost can increase if you opt for a fancier program), and will take a few months to complete.  Once you have your TEFL certificate in hand, you should be able to start applying for teaching gigs that look interesting to you.  There is bound to be some competition for some of the more choice locations, so the more flexible you are with your destination, the more easily you’ll find something that works for you.  Having teaching experience or a college degree (in anything) will make you more attractive to the more competitive schools.

There are probably a hundred more tips and tricks that can be used to make travel more affordable.  The point is, many people have the impression that traveling, especially internationally, is a privilege reserved for the rich or advantaged among us.  Simply being smart about your finances, purchases, and travels can be the difference between being able to afford a week-long vacation once a year and being able to satisfy even your most outrageous vagabond fantasies.

Get out there!