"What is that feeling when you're driving away from people and they
recede on the plain till you see their specks dispersing? It's the
too-huge world vaulting us, and it's good-bye. But we lean forward to
the next crazy venture beneath the skies."
-Jack Kerouac, On the Road
Dreaming of escaping the rat race to explore the remote jungles of
Madagascar? Want to drop the 9-to-5 in favor of a pristine beach in the
Seychelles? What about hiking through the mist-shrouded mountains of
Bhutan instead of grinding through the morning commute? If only the pocket-book would allow it...
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| Light at the end of the tunnel... |
As we were planning our
round-the-world adventure (right now we're sipping macchiattos in Addis Ababa,
Ethiopia)
our friends constantly asked, "How can you afford something like
that?!" Luckily, the answer is, "Easily, if you make it a priority..."
This
was a question we had struggled with when we started thinking about
doing our trip. It seemed impossibly expensive to do an extended travel
jaunt, especially as young professionals in our twenties. Wasn't
globe-trotting restricted to the realm of trust-fund babies or the
comfortably retired? This hung like a specter over our daydreams until
we finally figured out how to solve the problem: with numbers...
Turns
out that, if you do it right, traveling the world is a hell of a lot
cheaper than daily life in the US. Drinks might cost $100 for a night of
clubbing in San Francisco. That same $100 could cover a week's worth of
top-notch local Thai food in
Thailand. Of course, cost of living in Western Europe,
Japan or
Brazil
is comparable to the US so you won't be able to leverage your
purchasing power as much. That brings us to Lesson 1: choose your
destinations carefully. Want a postcard worthy beach paradise? You might
be thinking
Fiji but the
Philippines
has beaches just as nice and is probably 70% cheaper. Want to climb
some beautiful mountains? The Swiss Alps are picturesque but
Nepal's
Himalayas are absolutely epic and you'll probably spend 80% less. A
great way to start is to do a Google search for phrases such as: "budget
travel countries" or "cheapest countries to travel in." These long-term
travel sites might come in handy as you research country costs:
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| The Annapurna range in Nepal |
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Okay.
You've done some research and trimmed your list to countries that are a
little more affordable. Now let's figure out how to pack in every
activity in your 15 country list into a 6-month itinerary! Whoa there,
wait a minute... Time for Lesson 2: take your time. International plane
tickets are likely to be the single biggest line-item in your trip
budget. Cost of living in Indonesia is insanely low but
flying
from San Francisco to Jakarta will drain your checking account like
crazy. Instead of four countries per month why don't you spend six weeks
really getting to know
Sri Lanka (you can come join us while we do exactly that this July)? You'll save a ton on airfare
and you'll actually get to experience the country, something you're guaranteed
not to do on a whirlwind tour.
Great.
Now you have your itinerary rationally planned out. You've researched
the average costs in the countries you plan to visit and the activities
you want to do. You've added up all the costs and although it's a good
sized chunk of change, it is something you can definitely save up for.
But then this lingering sense of doubt seizes your mind: not only will
you be forgoing paychecks for the extent of your trip, you won't even
have guaranteed income when you return home! Your job won't let you take
a six-month leave of absence so you'll be forced to quit (or thrilled
maybe). Then you're going to go blow all your money and with a return
ticket to unemployment! There's
no way this will ever happen. Unless... Lesson 3: build in a cushion.
The
inevitable job search isn't an endgame, it's just part of the process
of long-term travel. Seriously, you're obviously a smart person (you're
reading this blog after all) so how long do you think it would take you
to find a job if you gave it a truly concerted effort (i.e. 40
hours/week networking, etc.)? Three months? Four months? Remember, this
doesn't have to be your dream job. We're just talking about making sure
you have income flowing. Okay, so you're understandably a little
paranoid, let's make it six months. Add up all your costs for six months
of living without an income when you get back home. Now add that to the
cost of your trip. Ta-dah! You now have the
total cost of your adventure
including your eventual job search, no more professional paranoia allowed.
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| Budget in minutes with our tool |
Damn,
these all sound like great ideas but it also sounds like a ton of work.
Luckily for you, we built a financial planning tool for budgeting our
trip. Even better, we're willing to share! Just
download the Excel spreadsheet here
and start playing around (click the 'down arrow' in the top left corner
to download after the link opens). All you need to do is fill in the
relevant details for your dream trip (all input cells are green). Then
our model does some math on it and instantly spits out tons of useful
info all customized for you: trip cost per person, cushion cost per
person, average daily expense, number of months needed to save for the
trip, etc. The first tab gives you an example so you can see how it
works. The second tab has a blank version for you to fill in.
Wow, how cool!
But wait! Should my daily cost of food in India be $6 or $7? What if there's an unexpected $20 airport tax in Nairobi?
My budget is ruined and I'm heading for personal financial collapse!
Calm down and pay attention to Lesson 4: don't pinch pennies. Nobody
wants to spend their entire trip thinking about cash. When you're diving
the Great Barrier Reef you want to look at the fish, not think about
the Australian exchange rate. Make sure to be conservative in your
estimates and then add a 20% buffer on top of that. That way once you're
on your trip you'll be able to relax and have a good time with no
nickel and diming.
Now you have everything mapped
out. It's all fine and dandy and you plan to leave early next year,
except... Well, you aren't meeting your savings goals because your new
BMW's lease payments are too high, you're carrying a balance on your
credit card and you don't want to skip those $100 happy hours. What to
do? Lesson 5: don't be an idiot. What's most important to you? Friends,
family, health, etc.? You should be able to achieve an enormously
fulfilled and happy life without breaking the bank. If you
like to spend money on a ton of useless crap that's absolutely fine with me. But don't you
dare complain about not being able to afford a kick-ass sabbatical. Choose your priorities and stick to 'em.
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| It's a loooong flight to Madagascar |
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We
found that the process of modelling out the finances for our trip was
enormously useful. But not because our final spreadsheet was accurate.
Only one thing is guaranteed: you're going to be dead wrong. Prices
change in country, estimate are off in one way or another. You'll be in
the ballpark but you're not going to be exact. No, the process was
useful because it forced us to openly articulate and discuss our various
financial doubts, worries and fears. A job search is stressful in the
abstract but once you have to make numerical estimates about it's length
it gets a lot less threatening. Remember that the deepest fear we all
harbor is that of the unknown. It's much harder to worry about concrete
numbers on a spreadsheet. By actualizing our abstract fears we finally
banished them.
If you are thinking about a long-term travel adventure, ask yourself if you
seriously
want to do it. When you are absolutely sure that this is what you want,
make a commitment to make it happen no matter what - when we decided to
do our trip, we actually shook on it. Once you make that mental switch,
you will be
amazed at how things just seem to fall into place and the path to travel almost paves itself.
Choose
your destinations carefully. Take your time. Build in a cushion. Don't
pinch pennies. Don't be an idiot. If you keep these five things in mind
you'll be swatting Madagascan mosquitoes in no time at all...
Co-posted on
www.eliotpeper.com