How do I save to travel the world?
Category : Other Travel Tips
How do I save to travel the world?
It is not difficult to save to travel the world if you are willing to change a few small things. Most people have the capacity to do a lot more travel than they think if it is a priority for them. People often ask me to give them some suggestions on how to do it. Here are some of my tips.
Pull the plug on any cable TV. Cable TV is expensive and the time can be better spent elsewhere when your priority is to see the world. By cutting Foxtel, you are adding a minimum of $26 a month ($312 per year) to your travel kitty. Some people spend a great deal more than the minimum.
Ditch the Gym membership. It is expensive and the exercise you will get when travelling (walking will help to make you fit). I was the fittest I had ever been after a year of travel. Average gym costs are $65 per month ($780). By quitting the gym this is put back into your travel kitty.
Running a car is one of the most expensive items that most people have. For most people it can be avoided by taking the bus. Where you have two cars in a family, consider getting rid of one of the cars. Use a bus or train instead. Average running costs for a car are likely to be between and $5000 and $10000 per year. This includes registration, CTP, insurance, petrol, maintenance. The bus or train will always be cheaper. If it only costs $1500 to travel by bus or train for the year, this equates to a savings of between $3500 to $8500 per year.
The Daily Latte/Espresso
Many people buy their daily cappuccino/latte/espresso. This quickly costs a lot of money. At $4 per day and assuming 220 work days this is costing $880 per year.
Friday night drinks
Ditch the Friday night taxi and take the bus instead. Better still ditch the drinks altogether and have lunch together instead. Whilst this may risk your social status you will be saving a great deal of money. Many people spend $30 per Friday night on drinks and then take the taxi home. The taxi may be $20 even for a relatively local trip. If this is your case, this will save you $200+ per month and $2500 per year.
If you are a smoker and smoke a packet of cigarettes a day at $22 then this equates to over $8000 per year.
Eating at restaurants can eat into any budget. Say you eat at restaurants once a week at a cost of $60 for 2, normally you could cook at home and eat for $15 for two people,a saving of $45 per week or $2340 per year.
Take the long road rather than the toll roads. Yes. It will take longer. Between Sydney city and Beecroft the return tolls are $20. Say you travel this route once a week. Cost is $1000 per year.
If you have your own place then consider getting a flatmate in. This can bring in an extra $150 to $400 per week ($7800 to $20000 per year) If not, consider renting a place and getting a flatmate in or moving in as someone else’s flatmate. This can save a great deal of money.
Work an extra job
If you have spare time now that you don’t have Foxtel, a Gym Membership, etc you possibly have time to take up a second job. By doing so, you can turn that spare time into extra cash. Say you work on Saturdays at $25 per hr for 8 hours is $10000 per year
Whilst not everyone is able to give up these things it provides some insight as to what is possible.
Foxtel $313 per year
Gym Membership $780 per year
Car $3500 to $8500 per year.
Toll Roads $1000 per year.
Daily Latte/Espresso $880 per year.
Friday night drinks $2500 per year.
Smoking $8000 per year.
Restaurants $2340 per year.
Share accommodation $7800 to $20000 per year.
Work an extra job $10,000 per year.
Say you manage to save $25000. This is enough for a family of 4 to live quite well in parts of South East Asia for a year.
With planning, it is enough for a solo traveller to travel extensively around the world for a year (with limited travel in more expensive countries such as USA, Canada and Europe).