We get this question a lot: how on earth are you able to afford this?
Or I get this one quite a bit: “bro, are you out of money yet?”
Did we win the lottery? Are we rich? Are mommy and daddy paying for everything?
No.
Truth is, when Janelle and I first met back in 2013 we immediately bonded with the common goal of wanting to travel and experience what this amazing world has to offer.
This goal has evolved over the last 5-6 years and when you insert a few extra bucket-list items we set off to accomplish (you can read more about our journey with the Premier League here) – we had to set a plan in place to get our finances in order and make sure we could fund this trip efficiently, effectively, and without going absolutely broke.
First off let me say that this old saying is true: travel is the only thing you buy that makes you richer.
For us, we were taking this trip one way or another. We couldn’t put a value on all that we wanted to see and experience. But as mentioned above, ideally we’d like to avoid going broke.
So, how did we financially prepare and how are we still able to continue traveling more than a year later?
And how can you do it too?
Below we will lay out our planning with a few quick tips highlighting why each point is important. Eventually, we will be updating this article with an expansion on each section below that digs deeper and will share more personal experiences.
Our Pre-Travel Planning:
Goal: save as much as possible and be liquid (aka have money readily available)
#1 – Maximize income
Ask for that raise you deserve, pick up side jobs, rent out a spare bedroom on Airbnb, etc. Ultimately the more income you can bring in, the more money you’ll have saved for your journey. Every little bit helps!
#2 – Pay off student loans
Getting rid of the dark cloud over your head will give you much more financial freedom. Click here to read more about our student loan journey and how we paid off a combined $160,000 in less than 4 years.
#3 – Pay off remaining debt
Credit card, mortgage, car payments. Our society is based on accumulating debt but this is not always convenient while planning a lengthy trip abroad. We strongly advocate for using a credit card for all purchases while at home and while traveling — accumulating points can help save a lot of money in the long run. But credit cards are a blessing and a curse. The high APR rates with credit cards make carrying balances very inefficient, so make sure all outstanding credit card debt is paid off before your journey begins. Depending how long you plan to travel, it may also make sense to sell your home and/or car to pay off any debt you may owe.
#4 – Minimize lifestyle and start saving everything
Start by canceling any monthly subscriptions you have and don’t necessarily need. Set budgets for groceries, nights out, and try to cut out meaningless material spending all together. Walk when you can, or take public transport when needed rather than using Uber or paying to park your car. Make coffee and meals at home. Only buy things that you literally need to live.
#5 – Get a great travel credit card
One of the absolute best investments you can make in the pre-travel planning process is getting a solid travel credit card ASAP. Travel credit cards offer the basic essentials, such as zero foreign transaction fees, fraud monitoring, and worldwide assistance, and the sooner you get one, the sooner you can start accumulating points before you even set off on your journey. The rewards programs also offer many perks that we’ve been able to redeem for literally thousands of dollars in accommodation, dining, and transportation. And if the travel rewards alone aren’t enough, then the additional perks are things that we can’t personally put a value on but have been extremely convenient throughout our entire journey, including: car rental insurance, emergency evacuation coverage, baggage delay insurance, trip cancellation/interruption service, lost luggage reimbursement, and so many more. Stay tuned for which cards we recommend!
#6 – Map out a rough draft of your ideal timeline and which countries you want to visit
Are there any specific festivals, sporting events, or seasons when you know you want to be in a specific place? Or maybe you prefer to just fly by the seat of your pants and go wherever the wind takes you. Either way, you likely have some specific countries or cities that you know you want to get to, so start looking at a calendar and mapping out what makes sense for your timeline and budget. If there are high profile events you want to get to, it might make sense to book transportation and accommodation sooner than later to save some money. If you prefer not planning everything ahead of time, having an idea of places you want to visit may help when choosing where to start your journey.
#7 – Start researching flights & accommodation
Depending on where you’ll be traveling, paying for flights and accommodation will likely be the most expensive portion of your budget. If you know you want to go to a specific place for specific dates, look EARLY! If you are super flexible, consider taking buses or trains to get from place to place. If flying is necessary, use skyscanner.com to search where the cheapest place to fly is from your home destination. For example: our closest airport was Boston, so on the website we plugged in “From Boston”, and then where it says To, you can enter the word “Everywhere” and it will direct you to all of the absolute cheapest places to fly from Boston. There is even a feature where you can search an entire month and it will spit out the cheapest date to fly as well! Accommodation-wise, do your best to be flexible and have multiple avenues to search on. We usually use Airbnb and hotels.com, on top of searching for the best deals using our credit card points.
#8 – Consider investments that offer returns
Depending on the length of your desired trip, there’s the real possibility that you will be taking a significant amount of time off from working and your typical income will be no longer. In an ideal world, you will want to still have some form of income, and although it is not necessary, it’s definitely helpful for long-term travel. Some really great options to consider are fixed-income investments and rental income. After saving up all that money by maximizing your income, talk to your financial advisor about relatively safe investments you can make so that your money stays safe while you are traveling and even makes you a little additional income along the way. If you own any property that you know you definitely don’t plan to sell, consider renting it out to receive a consistent income while you are away. You may be surprised by how much you can make by using airbnb, vrbo, or finding a long-term renter.
#9 – Plan to work while you travel
Depending on your line of work, you may or may not be able to work remotely. If not, there are still opportunities to make some income while on the road, including blogging, doing graphic design work, coding, tutoring online, or even finding odd jobs and working wherever you go. You could also apply for seasonal jobs in other countries like being a scuba instructor, leading kayak trips, working at a winery during the busy harvest season, or other similar specialties that will allow you to live and work somewhere for a period of time to kickstart your journey. (These are all real life examples of individuals we met on our travels!) There are also companies like Workaway that give you work to do in exchange for free accommodation. Trusted Housesitters is another great option where you can housesit and petsit for families who are going away, and in return you get to stay at their home free of charge! (Get 25% off a 1-year subscription to Trusted Housesitters here!) If you have enough money saved up, it may not be necessary to work while traveling, but if it’s something you haven’t considered, maybe it’s something that would interest you!
The pre-travel planning process is a crucial step while planning for long term travel. It will not only help you get your finances in order, but your dream journey will to start to formulate around you and you will start to really visualize the possibilities.
Stay tuned for our next article for Tips While Traveling Abroad where we will dig a little deeper into the do’s and don’ts while traveling and budgeting for accommodation, transportation, food, excursions, etc – as well as how to save even more money while in foreign countries regardless of the varying exchange rates.
Be sure to follow us on Instagram @ExtraTimeAbroad for real-time tips and experiences – and stay tuned for the Tips While Traveling Abroad article!
Extra Time Abroad is a lifestyle blog focusing on three areas: finance, sustainability, and travel. The blog is managed by husband/wife duo JJ & Janelle. They can be found on Instagram @ExtraTimeAbroad or at the airport!
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