How to save for your trip

If the most frequent question is "How do you get the time off to travel?" the second most common is certainly some version of "how do you afford to travel so much / so often / for so long?" the short answer to this question has two parts:
a) save in your real life, spend in your travel life
b) travel's not nearly as expensive as you think it is

The longer answer requires some explanation and makes the most sense if I hit upon these two topics in reverse order.

Shoestring Travel

Vacationing has lent an unfortunate misperception to the economics of travel. Americans have become used to resorts, cruises, and $150 hotel rooms -- none of which are necessary for, and some of which even take away from, a positive travel experience. I would guess that a couple on vacation in the Caribbean for a week would have little trouble spending $1,500 US per person ... or roughly the cost of the month I spent in Argentina recently. Travel does not need to cost what we think it does.

So what's a potential traveler to do?

Choose your country carefully. Whatever indigestion the US economy is feeling from having digested Bush administration policies, the US dollar is still a strong currency world wide, one that will carry you much farther abroad than in does at home. Travel publications like www.lonelyplanet.com and www.roughguides.com can help you estimate travel costs as you plan your trip; some of their numbers might shock you. South Africa ... $20 US per day. Morocco ... $15 US per day. Bolivia ... $12 US per day. Really, how can you afford not to go?

And, plan on being a frugal traveler when you arrive. Limit your lifestyle. Avoid touristy hotels, restaurants, and attractions. Take public transport. Skip tours in favor of finding your own adventure. Future posts will cover this topic in all kinds of detail.

Live for travel, save for travel

Aware that your travel goal is financially attainable, some lifestyle changes are in order to set aside the few thousand dollars that your 2 week, 2 month, or 2 year adventure will require. As there is no one way to save, I will offer the formula that has kept me on the road long enough to need a second set of pages for my passport.

NO CAR

The one decision that has saved me more money that any other was the choice I made to live in cities and thus avoid owning a car. In the eight years since college graduation I have never made a car payment, insurance payment, registration payment, nor spent $40 at the pump. How much I've saved, I'll never know, but it's been enough.

INTERNET BANKING

Everyone has and needs a bank account, but low interest rates have made them fairly useless as a savings device for the last eight years. Useless, unless you have cashed into the internet banking revolution. hsbc.com and ingdirect.com offer accounts that have been paying between 4.5 and 5%. Here your money stays liquid and accessible, but pays a rate high enough to help finance a trip. In fact, keep $10,000 in there long enough and you may travel for free.

BUY PLANE TICKETS EARLY

Often, the flight to wherever you are going is more costly than actually being there. Act early to cut down the very flexible price of this ticket as much as possible. Most airlines will allow you to book 10-11 months in advance. Though specials rarely arise this early, base prices are usually affordable. For example, I flew from New York to Cape Town, South Africa last August for $1,000 US return because I bought the ticket in January, a ticket that was $2,500 a few months later.

Additionally, if you are really good, using frequent flyer miles cuts flight costs down to zero. Like getting a good price, nabbing these tickets requires you to act early as these seats go fast.

SECOND JOB

There's no harm in taking a part-time job to pay for your travel habit; I've done it. My advice? Make that job work double for you. Find work at a wilderness outfitter like EMS or REI. Not only will the job be fun and pay well enough to support the occasional trip, but taking time off is expected in this line of work AND it will offer you a large discount on just the expensive travel gear you will want to buy anyway.

TRICK YOURSELF

And, if all else fails, come up with a system to fool yourself into setting aside enough cash to hit the road. Save change in a jar. Don't go out on Friday nights. If you're desperate, recycle your college fraternity's beer bottles. Once, I kept an envelope in a sock drawer that I would stuff with whatever one dollar bills I found in my wallet at day's end. Sound silly? 327 of them later, I flew to Halifax, Nova Scotia. You can too.

So,what are you waiting for?

-paul