We get this question all the time. People always want to know how Zoey and I saved up enough money to travel. They also want to know how much they should save up themselves. Honestly, we love when people ask us this question because it means that they are one step closer to actually packing their bags and getting out there. So, to help all of you who have asked us, and those who are too shy to ask, here is how you can determine how much money you need to save to travel the world.
First, ask yourself these VERY important questions:
- Where do I want to travel to?
- Your destination is very important because it’ll help you determine if you’re going to need a larger budget.
- The more places you go to, the more transportation expenses you’ll have.
- Third world countries are cheap. First world countries are not.
- Check room rates online to see how much a bed/room will cost you in the city you plan to travel to.
- How long do I want to travel for?
- The more time you plan to travel, the more money you’ll need.
- The longer you stay in a single place, the less money you’ll spend.
- Do I want to work while I travel?
- You’ll save and make money as you travel.
- You won’t spend as much money because you’ll spend half of your day working.
- If you don’t work, you won’t have an income, which means you’ll need more money.
- How important is luxury and extreme comfort for me?
- If you have high standards when it comes to accommodation and transportation, you’ll be spending lots of money.
- Go with the cheaper option, you’ll save money and you’ll probably have an interesting experience too.
- How much sightseeing and touristing do I want to do?
- Typically, the iconic locations have an entrance fee so take this into consideration when creating a budget.
- The more tourist locations you plan to visit, the more money you’ll spend.
- Tours and entrance fees can take up a lot of your budget.
- The more time you spend exploring on your own and not on a tour, the less you’ll spend.
Second, determine how much money you can realistically save up every month.
- Make sacrifices in your daily lives to enjoy your travels later. This may mean no eating out for a few weeks, not drinking at the bar and drinking at home instead, not buying the expensive drinks, carpooling to split the cost of gas, and not shopping for the new gadgets or new clothes.
- The more money you can save up every month, the less time you have to spend saving up.
- The more money you can save up every month, the longer you can travel.
- If you can save more, save more.
- Ideally, you’d want to save up anywhere between $500-$1000 USD/month
Third, come up with a budget that fits YOU!
Once you answer the questions above, you should do a little research on how much things cost in the country/countries you plan to visit and come up with a basic budget.
Always plan to spend more. It’s better to have more money than not enough.
Based on our travel standards, our plans, and our destinations, we know that we have to save up at least $1,000-$1,250 USD for every 1 month we plan to travel. I think this is a pretty good budget for anyone who knows how to live on the cheap, eat street food, take the 26 hour bus rides, haggle, and make friends in the 12 person dorm room.