Some believe that a trip around the world would be extremely expensive. This is complete nonsense. You do not have to be rich to travel. Of course, the travel budget depends on your travel style. There are people who have already traveled around the world for 5,000 Euros a year. Others spend the same amount for two weeks on the Maldives. Basically, the slower you travel, the cheaper it is. You usually need less money than you spend at home.
A small clue for backpackers is to budget about 1,000 Euros / month.
I have budgeted for a year and have been on the road for two years now. One reason is that I prefer the cheap and most adventurous travel style.
How do you save for a travel budget?
Once you have the plan to go on a big journey, you should create something like a travel fund or travel account. It is best to transfer a fixed amount that you can spare to this account on a monthly basis. First, of course, you have to think about how long you want to travel.
Most travelers plan, as already mentioned, with about 1,000 Euros per month. I ended up using much less than planned, so that I was able to double the time of my journey.
Nevertheless, it is recommended to generously calculate your budget. If you want something more comfortable, it should ever be 2,000 Euros a month or more that are available to you.
In addition to periodically transferring amounts to my travel account, I had begun to sell things from my apartment. If you plan a long-term trip, I would also recommend you to get rid of unnecessary bits and pieces and best sell them in the form of a flea market. Of course, the money you earn will go to your travel fund. Shortly before I left, I sold my car and furniture.
Plan upfront how much money you can at most afford to spend in a month, so you do not use it up completely. You should also keep a record of your expenses during your trip, and check them every one to two weeks. This is especially easy with online banking.
I also had a standing order from my main account to the account I used during the trip, with the maximum amount I could spend per month. For me, that meant 500 Euros a month. With the app of my bank, I was able to check regularly whether my expenses were within my limit.
Before you leave for your journey, make an appointment with your bank, and tell them about your travel plans. Some credit cards have to be activated, before they can be used in foreign countries. It is also advisable to get several cards, in case you lose one or it gets broken.
I traveled with four cards from two different banks: A credit and debit card of my bank in Austria, and a credit and debit card of the DKB (Deutsche Kreditbank).
The DKB is considered a favorite of many travelers, since the worldwide withdrawal of money is (currently) free of charge (as of 2016). Thus, it is also no problem to withdraw small amounts.
It is also beneficial to have both a Visa and MasterCard credit card, as in some countries, only one of the two types is accepted. I had no problems with my Visa card. However, I heard from some that their MasterCard did not work everywhere.
If you intend to travel longer, it would be good to grant someone in your family access to your bank account.
What costs do you have to expect?
1. One-time costs before the journey:
- Copies of IDs, such as a passport
- Vaccinations
- Copies of visas
- Backpack
- Equipment
2. Ongoing costs during the journey:
- Accommodations
- Food and beverage
- Excursions
- Transport (flights, busses, ferries, ...)
- Communication (internet, telephone)
- Purchases (cosmetics, clothes, ...)
- Insurances (international health insurance, health insurance in your home country)
- Active contracts that cannot be terminated
- Rent or other periodic costs