Last time, we talked about the budget process for a year around the world, where I estimated that it would take $28,000 per person (around $500 per week) to circumnavigate the globe (at an enjoyable pace) in roughly a year. After the 54 weeks of travel across 5 continents and 28 countries (31 with layovers), we had spent $25,286.50 per person ($468.27 per week)! Below, I’ll talk about what we actually spent our money on and how we kept our costs down, as well as how you might be able to spend a year traveling on even less.
Sticking to a Budget
A budget only works if you stick to it, so I built a tool to help us track our spending through the entire trip. It’s an Excel spreadsheet with tabs that I tracked all of our spend on in five categories – lodging, food, travel, personal hygiene and health, and fun. It then calculates total spend by category for each week and by country. You can download it for free below to use on your trips, and if you have any questions feel free to contact me!
P.S., one thing I would change about my budget is to write the spend in on the day the event occurred, not when we purchased tickets. This is the same day for most things, but for travel will help you sort spend better by region. For example, spend in LATAM looked way higher originally because it included the tickets for our flight to New Zealand, but that should actually be part of the Oceania part of the trip. I’ve made adjustments to the data manually below, but it was a pain to do.
What our budget went to
Because I love data, I ran an analysis on our expenses from the trip and below describe our breakdown of what we expected compared to actual spend by category. As an overview, travel was definitely the biggest part of our budget, which is unsurprising when you’re circumnavigating the world. But even this, as well as food and lodging cost less than we thought. And as avid hikers and explorers, we found tons to do that was fun and free.
Expected: $200 per person per week
Actual: $162.24 per person per week
As mentioned above, travel was our biggest budget category and is nearly twice the size of our nearest other spend categories (food and lodging). This is primarily because I set out with a goal for us to circumnavigate the world AND chase summer, so we had to travel round the globe in a giant sinusoidal shape (that’s a sideways “S” shape for, for those of you who don’t know). We had to cross both the Pacific and Atlantic Oceans and shift between the Northern and Southern Hemispheres, and that much distance to cover in a year while leaving time to enjoy things means we paid money for flights. It was normally a couple hundred dollars here or there, but there were also a few big-ticket items like the flight from Phoenix to Mexico City, to and from the Galapagos, from Santiago to Auckland, and the flight home from Berlin. Trains, which were really only available Western Europe as a mode of transit (save for Russia and Indonesia), were surprisingly often as expensive as flights. Bus was often the slowest, but cheapest and most interesting option between locations (even the bus ride from hell counts).
Our best rule for saving money became the two-week rule: unless there was no other way, we booked flights only if we were travelling more than two weeks out. If we were within the two-week period, we caught a bus or some other mode of transit instead. Rome2Rio helped us out a lot in figuring that out.
Expected: $105 per person per week
Actual: $78.39 per person per week
Another expected, constant cost of our trip was a place to sleep each night. We had a budget of $15 per person per night, and what we could get for that varied a lot both between and within countries — heck, it varied a lot even within the same city. Prime example was Cartagena, where a private hostel bedroom within the walled city with the bed taking up nearly the entire space, no AC, and gaping holes in the ceiling that let mosquitos in cost us as much as an air-conditioned, modern room with a TV just outside the city’s walls.
My primary strategy to keep cost down was research, research, research. If I had the time or knew we were going to be somewhere for a while in advance, I checked Hotels.com, Booking.com, and HostelWorld.com for the cheapest deal, looking in particular for multiple-day stay discounts. If it was last minute, I skipped HostelWorld and just stuck with Hotels.com and Booking.com, looking for last-minute discounts.
We also cut costs by having transit sometimes double as lodging, taking overnight buses, flights and trains. This was particularly helpful in South America, where long-haul buses are commonplace and first-class seats were affordable for travelers, even on our budget. For flights, the airport often doubled as our accommodation, as we would find a quiet part of the airport and rolled out our camping mattresses before or after our flight. Since people frequently sleep overnight in airports (there’s a whole website dedicated to it), most airport staff don’t bat an eye.
Lastly, we cut about a month’s worth of lodging (and food) costs and had the most amazing time possible by doing the obvious: visiting where we had friends and family currently living. It meant we had a happy host, a welcoming bed, amazing food, and often a far better guide than the internet to the area.
Expected: $105 per person per week
Actual: $89.66 per person per week
Like having a place to sleep, you always gotta have something to eat, but we found while food could vary wildly by country, we had more control over it than the cost of lodging. If you’re staying in a hostel in almost any country, you can pick up ingredients from a local market and cook a meal for a fraction of the cost of a meal out. This played a big role in making Western Europe affordable, where we saved for one nicer ~$25 meal a day and otherwise snacked on homemade sandwiches and salads. The only caveat I would give here is that there is an opportunity, no, an enjoyability cost. Because a place’s cuisine is often unique and singular to a place (like the culture), it’s worth springing the money to enjoy at least a couple of meals and understand how the locals eat. We would rather spend a little extra on food over lodging any day (which usually gives you less of a window into culture), and our actual spend reflects that.
Beyond cooking your own meals, the other way to save costs is the above-mentioned stay-with-friends-and-family method. Not much can beat a home-cooked meal, and in many countries your more rural relatives have better tips on the best cheap places to eat.
Expected: $20 per person per week
Actual: $41.88 per person per week; $11.46 per person per week without our year of travel health insurance
So depending on whether you want to count the pre-trip costs in the budget, I was either wildly under-estimating this one or just a little over-estimating it. When I put together the trip budget, I originally dropped the pre-trip expenses into a different spreadsheet and built the travel budget without it, so I wasn’t counting the travel insurance. As I mentioned in the last post, that travel insurance wasn’t useful beyond peace of mind, because even when I took a fall in Peru and needed an X-ray, the full cost of the visit was the equivalent of ~$200 USD and it was difficult to keep track of receipts and submit them for reimbursement while moving around so much.
Otherwise, this category sat pretty unused with the exception of repairing our equipment and restocking medicine, which I’d recommend purchasing when you are getting modestly low, not when you’re low or out, because there are some countries that just don’t have certain medicines. Pharmacists in Indonesia and Vietnam, for example, had no idea what bismuth subsalicylate (Pepto Bismol) was, so we were out until we got to Hong Kong.
The equipment repair and replacement was also pretty variable, and mostly consisted of us repairing the same pairs of shoes we wore throughout the trip. In general, a good rule to determine whether you should repair or replace is look at the current socioeconomic status of the country around you; depressingly, it’s affordable to get things repaired when you’re in a poorer country, but to buy something new when you’re in a richer country, just because of the variation in cost of labor. In some countries, we couldn’t even find people who still repaired camping equipment or shoes.
Expected: $100 per person per week
Actual: $96.10 per person per week
I’m thrilled to see the budget for fun experiences and souvenirs is almost spot-on with what I predicted, because I wasn’t sure if I had dramatically under-or over-estimated. We started out in South America being cheap as hell and got a little spend happy in a couple of other places (Japan, Western Europe, looking at you). We did have a couple of big splurges on the trip, like the five-star Galapagos cruise with a Cordon Bleu-trained chef on board (why our LATAM bar is so tall) and fine pens/hobby equipment in Japan. I also placed meals in really nice restaurants in this category because they felt more like experiences than food. But overall, we managed to keep costs down by being outdoorsy people and going for hikes or walking around town. We would also ask locals for recommendations on what to do for fun, as these tended to be way cheaper and more interesting than whatever was set up for tourists.
How to do it on less
There are two ways you could travel for a year on less: make fewer hops between countries, and stick with cheaper countries. We stayed in a location 1-2 weeks before moving on, which meant we were paying a lot in travel expenses. We also intentionally visited some more expensive countries (New Zealand, Japan, France, Germany), because we wanted to see them. If you weren’t set on the idea of circumnavigating the planet, stick with just Asia or LATAM and save yourself the cost of cross-continental hops.
Next, I’ll be doing a breakdown by country of our costs and provide some tips on how to save money in each country.
Read Part 1: The Budget.
Read Part 3: Country Comparison.