Does the thought of travelling the world with zero money worries appeal? If so, you are not alone. Unfortunately, unless you have a winning lottery ticket or a hefty trust fund, it is an unlikely proposition.
Or is it?
Research carried out by AirTreks in 2016 revealed that it would cost, on average, around £17,225 to travel around the world for a year. There are a huge number of variables, including seasonality and what you do when you arrive at a destination, but this is a useful ballpark figure. However, this figure only considers the cost of your trip – it doesn’t allow for any expenses you may have to cover at home, for example, a mortgage, utility bills, insurance, taxes, etc. So, when you look a little closer, you can see that you may need 1.5 times your annual income, plus a bit extra.
Since you are probably weeping by now, bereft to discover that your dream of travelling the world is a pipe dream, we are going to put you out of your misery. Don’t panic, there are ways and means to pack your bags and set off on an adventure of a lifetime, without going bankrupt in the process. Interested? Read on!
Take Care of Home Expenses
Firstly, if you are jetting off for a year, you need to tie up a few loose ends at home. You can either rent out your house and have the mortgage covered by a tenant or sell up and use the cash to fund your trip. Selling up is the “burn your bridges” approach, but for some people, it can work. If you elect to keep your home, make sure your budget covers the monthly bills.
Earn Money on the Road
The next step is to figure out how you can earn money while you travel. At first glance, this may seem like a no-brainer. After all, it’s easy to pick up a job in the hospitality industry, right? Well yes, it should be, assuming you aren’t trekking into the heart of the Amazonian rainforest, but there are other ways to earn money that are likely to be far more profitable.
Become a Digital Nomad
As long as you have a computer and an internet connection, you can earn plenty of money online. Digital nomads travel the world with their trusty laptop and work online to pay their way. You have plenty of options. Become a virtual assistant, write code or web content, or look into day trading forex. All of these online careers will earn you a living wage, and potentially a lot more if you master the art of forex trading.
The more you spend, the harder it will be to achieve financial freedom. It doesn’t matter how much money you earn while you travel – if you insist on blowing all your money in karaoke bars in Tokyo or casinos in Las Vegas, you will be permanently broke.
It would be lovely to travel the world on a private jet, staying in luxurious hotels and eating in Michelin starred restaurants, but unless your surname is Kardashian or Abramovich, it’s an unrealistic aspiration.
Yes, you can probably earn a decent income coding websites or trading forex but learn to embrace a frugal lifestyle if you don’t want to lose sleep over your non-existent savings. Bob Stark from Portafina, a pension advice specialist, says we should all save £10 a day to eliminate worry money forever. This might not be feasible if you don’t have a steady income but try and save as much as possible while you travel – within reason, of course.
Ordering a second cocktail at that cute beach bar is OK – you deserve it!