Travel | How to budget for a gap year and plan your trip
One of the most common messages I receive from readers asks about how to budget for backpacking. I write about saving money and how to plan trips a lot on this site, but one thing I really want to focus on is how you can possibly know how much you will spend on a long-term trip. After all, at home you’ve been living month-to-month rinsing those paycheques dry until you’re watching the days creep by towards pay day. The thought of not having a steady income and relying entirely on your savings can be scary for some – so it’s important to budget correctly and plan realistically if you want to have the best time. I’m all about making the most of your money and every possible experience – I don’t want to miss out on a single trip, meal or massage. BUT, I aways manage to do it on a budget because let’s be honest – I’d rather keep travelling as long as possible than indulge in a week of full luxury.
So how do you budget for a long-term trip?
First of all you need to establish how long you want to travel for and where you plan to go – weighing up the cost of living/travelling in each country. For instance – travelling in Asia is the cheapest travelling I have found and I could easily do a year there on the money I would need for 5-6 months in Australia. But when travelling Australia I have been working along the way and earning a small fortune compared to what I could save at home in the UK. If you’re on a break from work and only have a month – perhaps consider Europe which although expensive is a great way to see a lot of countries in a very short space of time. If you’re looking to travel for six months on a tight budget, Asia is fantastic – you can see so many different countries and the cost of living well is very low. If you’re looking to work abroad and fancy doing a year abroad – why not go for a working holiday visa in Australia, New Zealand or Canada and try a combination of working and travelling?
What kind of trip?
What are your priorities when you travel – are you looking for a full cultural experience of staying with locals? Are you planning to party your way around the world? Or are you a thrill seeker who wants to try every adventure trip going? You need to factor in the cost of trips/alcohol/food/living costs and be realistic. Always over-compensate – what’s that quote?
“When preparing to travel, lay out all your clothes and all your money. Then take half the clothes and twice the money.”
I couldn’t agree more – take as much money as possible by giving yourself enough time to save and cutting costs wherever you can (check out my top tips here). I worked five jobs for a year before going away the first time – it was worth every miserable second when it meant I saved £10,000, didn’t have to work for nine months and lived like a queen! I personally like a balance of cutting costs, partying a lot and adventure trips so I always think about how I can balance them. Sometimes I will stay in the cheapest accommodation possible and live off instant noodles so that I can justify an amazing road trip or island cruise. Other times I won’t be interested in trips and will spend all my money on cocktails and my own private hut on the beach. When I budget for my trip I take that into account and over budget my living costs. I always try and budget roughly £1,000 a month no matter where I am – then I know that in Asia I will hugely underspend which balances out in Australia when I definitely overspend, likewise with Europe I budgeted more because I knew I was travelling around a lot very quickly which costs more – best way to cut costs when you travel? Stay still for a while in a cheap place and just live simple.
We all have those times when we accidentally splash too much cash, when we shop too much in the markets or take our card on a night out then look at our account the next day with horror. I know I’m definitely guilty of that at home and since I’ve ben travelling – but it’s good to acknowledge it. If you admit you are possibly going to do it, budget for it and give yourself a cushion of cash to keep yourself out of the red.
Remember to account for any home costs while you’re away – if you’re still paying rent on a house or phone bills/credit cards you need to make sure you have the money available in the correct accounts at all times. You need to make sure you can afford to do this and don’t end up in more debt as a result of messing up your money or under-budgeting.
Don’t let budgeting put you off
Remember you will never have as much money as you would like. It would be great to live in that dream world where you have a constant supply to keep you going, but it may never happen. Don’t let that stop you from travelling – I know people who have gone away with £1-2000 for a long trip and who have just figured it out along the way. I always think the less money we have, the better we are with it. And always remember – there are so many amazing options for working abroad these days – those working holiday visas I mentioned earlier, see if your own current working company can transfer you abroad, study abroad, teach English around the world, volunteer, work for accommodation. The options are endless and there is always a way to make your travelling dreams a reality. I’ve been both the richest and the poorest I’ve ever been since travelling and I can assure you I’ve lived the dream throughout both. If you’re determined and committed to making it a reality, you will always find a way.
Need budget tips for your upcoming trip – leave a comment below with any questions! What are your best budget tips for preparing for a long-term trip?