I left my first job as a graphic designer at a newspaper to embark on a year-long work visa adventure in Australia. One of my colleagues asked, “How will you manage financially? Do you have a trust fund?” I responded, “No, I saved up and will work while I travel.”

Traveling is more accessible than you might believe, and it can often be cheaper than your current living expenses. A common misconception is that travel costs are prohibitive. I'm launching a series on Travel Funding that will cover strategies for saving for your journey and tips for minimizing major expenses. While my advice focuses on long-term travel, it's also applicable for any trip. In this series, I'll emphasize financial aspects rather than time management. For insights on finding travel time, check out my post on timing your travels here.

Zicatela Beach, Mexico


WHAT'S MY SAVINGS TARGET?

I aim to maintain a budget of $1,000 USD per month, which breaks down to about $30 daily. This budget is standard among many backpackers I've met in Asia and Latin America. Ideally, I want to have at least $10,000 saved before embarking on any trip, regardless of its duration. For my current travels through Central and South America, I started with $15,000 and no debts.

Key Considerations for Saving for Travel


1. Understand Your Destination

Where are you headed? Aside from Japan and Singapore, Asia tends to be the most affordable region. Central and South America, excluding Brazil, offer reasonable prices compared to the U.S. Western Europe is typically quite costly for American travelers, and Australia also comes with a hefty price tag.

Consulting guidebooks can provide a rough idea of expenses. Visit your local library or bookstore to browse current travel guides. Lonely Planet often includes a daily cost analysis at the start of each guide, covering various budget options. This is a great way to gauge transportation, accommodation, and food costs.

2. Know Peak and Off-Peak Seasons

Prices can skyrocket during holidays and peak seasons. Be aware that holiday periods at your destination may not align with those in your home country. While prices can surge, some businesses might close, and transportation can become more expensive and scarce in off-peak times. Low seasons may bring colder or rainier weather. Shoulder seasons often provide the best balance, allowing for price negotiations on lodging but easier access to transportation in peak times. Do your research.


3. Major Activities on Your Bucket List

If you're keen to get PADI certified for scuba diving or attempt to climb Kilimanjaro, familiarize yourself with the associated costs. This will likely be your largest expenditure, so understanding the prices will help you save more effectively.


4. Connect with Fellow Travelers

Remember the friend of a friend who teaches English in Thailand? Reach out to him for insights about living expenses. Online forums can also be treasure troves of travel wisdom. Websites like Couchsurfing.com offer great opportunities for connecting with experienced travelers and attending local meet-ups. In Austin, I joined Spanish meet-ups before my trip and met numerous people with fantastic budgeting tips for travel.


5. Establish a Cushion Fund

At some point, you may choose to return home. Do you have plans for that? Is a job waiting for you, or will you stay with friends or family? You don’t need a solid plan, but having a cushion fund to cover a couple of months' living expenses back home is wise. Personally, I feel secure with a cushion of $5,000-$2,000. If you have employment lined up, you can manage with less. What’s your savings goal?