Money philosophy, planning, tips & tricks
The reason money is the third most important factor is that money can rescue you from the first two scenarios (health and weather), but not always.
A note from Scott: This article was originally written by Dennis as an estimate. That article now lives here: How much does it cost to cycle around the world? This current article is a hodgepodge of the money lessons we learned. I also recommend:
- My new Travel budget calculator.
- In case you are planning on making money from your adventures, I suggest reading this guest post: Why I quit being an adventurer to become an accountant
This article is part of a series.
The three most important factors when planning your travels, in order of importance:
We met the Australians, Bluey and Trish, in California. They were experienced world travelers and gave us the advice that the most important things when travelling are: “An Australian couple I camped with many nights as I bicycled down the West Coast. They shared their stories and advice on international bicycle touring. Bluey’s recommendation was, “Health, climate and money, in that order.”
As we discussed, health is most important. Weather comes next because it can ruin your health. And money comes third because it can help rescue from an illness or bad weather. But, most likely, if you don’t have any money, you won’t be able to travel, unless you commit to the hobo lifestyle. (A hobo is a migratory worker.)
Money may be the least romantic aspect of travel, but it’s often the determining factor in how long your journey can last. Some days meant sleeping in a ditch to save on accommodation; other times it meant splurging on experiences that would become lifelong memories. In this article, we’ll discuss why and where to spend your money (the philosophy). Plus, we’ll discuss practical tips, security, and tips on how to save money.
Philosophy of money
- First off, money is to help you live a better life. With that in mind, consider that a travel budget is NOT about saving money. Your goal is to spend your money where it matters most, and that usually means the local attractions, the once-in-a-lifetime opportunities you can’t get anywhere else. I was too much of a cheapskate and regret missing a lot of opportunities. But, in my defense, I wasn’t sure how long or how far I wanted to travel.
- The most memorable travel moments often don’t cost a thing. Some of my favorite travel memories are free: watching the sunset from a public beach in Barcelona, hiking through ancient forests in Japan, or simply wandering through colorful markets in Morocco.
- The daily budget or benchmark. Setting a daily budget may sound obvious, but the not-so obvious part is that if you have a extra at the end of the day, buy yourself a treat or an experience.
- The surprise budget. We found that our estimates were almost always off by 15%, even if we were calculating mileage on the map. So, we soon added in some padding to all our estimates.
- The local economy rule. Research the minimum wage in each country. This gives you a realistic perspective on costs and helps avoid tourist price inflation. Also, you avoid breaking the local economy and spoiling the locals.
- Go slow. That’s the beauty of traveling by bicycle. You’ll experience life like a local. It will cost less, too.
Important practical tips
- Always check a currency converter and practice making exchanges in your head. Once, we met a guy with a rigged calculator that came up with funny numbers. Luckily, Dennis did a rough calculation in his head and caught the guy.
- Use a bank or hotel to exchange money. Avoid moneychangers. And be careful of ATMs. They may charge you a fee on top of an unofficial exchange rate, plus your own bank may add fees on top of all of that.
- Get a credit card that doesn’t have any international fees.
- Tell your bank that you will be traveling, so your card doesn’t get flagged.
- Also, take both a Visa and a Mastercard. Neither is accepted everywhere.
- Your three biggest expense will be transportation, lodging and food. So these are the areas to focus on to make your travels affordable.
Security
Keeping your belongings safe is the same thing as saving money. Here are some favorite tips:
- Buckle your backpack to the table, or put your foot through the strap so that thieves can’t snatch and run. Once, some kids snatched Dennis’ backpack out from underneath our table. They even arranged a distraction, so we never saw it happen.
- Hide money in several places, like a shoe, seat post, hotel room or even bury it underneath your tent or hide it in a tree. Don’t put all your eggs in one basket.
- Zip tie panniers to your bicycle racks so no one can walk away with them.
- Wrap your valuables in plastic bags. By the time it starts raining, it may be too late.
Tips to save money while you travel
The most basic tip is to be as self-sufficient as possible. Your three biggest expenses will be transportation, lodging and food. So these are the areas to focus on to make your travels affordable. On the opposite side of the equation, why not try earning money while you travel? Many skills have a real value to others.
Earn money while you travel
- Be a street performer. Can you juggle or play an instrument?
- Draw pictures.
- Write a blog and add advertising.
- Be a travel writer.
- Skip the hassles of money and trade your skills for food or lodging.
- Please do NOT beg for money. It may be illegal. And it is disrespectful to the locals.
- Likewise — I have seen it so much that I have to say — do NOT steal.
Transportation
- Find your own mode of transportation, like a bicycle
- Go hiking
- Hitchhike
- Carpool
- Search the internet for last-minute travel deals
- By the way, I recommend that you stay in one place and really soak up the experience. Hopping to a new spot every day will chew up your budget.
Lodging
- Hostels are a great way to meet people
- Go camping. Formal campgrounds will take care of all your basic needs.
- Bush camp, but be respectful. If you pack in, take it out.
- Couchsurf
- Join a group like warmshowers.org
- Or just travel to a more affordable country where you get a better value for your hard-earned money.
Food
- Cook your own food. Use the kitchen at the hostel or bring a stove
- Filter your own water.
- Learn to forage. You’ll find plenty of wild fruit if you know where to look. And there are a lot of wild vegetables. In the Midwest of the USA, you’ll find dandelions, goosefoot, onions, mushrooms (careful) and more.
- Go fishing. You don’t even need a pole. A simple block and tackle will work in most cases.
- Go hunting. This one never worked for me, though I tried to catch a rabbit.
Misc.
- Do your own laundry using a tub, bucket or waterproof panniers.
- Learn how to do basic repairs.
Send us your ideas, and we’ll add them to the list.
Conclusion
There’s a lot more I could say, but I think this is enough to get you out the door.
