If there is one aspect of long-term travel that isn’t talked about a whole lot, it’s money. You’ll read the occasional “How much this did or that trip cost?” but that’s only a small part of the financial side of long-term traveling.
Maybe it’s because we don’t like to talk about money. If we’re struggling we don’t want anybody to know but if we’re doing well you better say nothing either before everyone thinks you’re a snob.
Still, it’s impossible to travel for a long period without thinking and talking about money. How do you make sure you have enough and how do you build up a lifestyle that allows you to travel? We will give you 6 different options on how to afford long-term travel and build up your dream life.
How much is enough?
One of the hardest parts about long-term travel is setting up a budget, especially if you haven’t done any traveling yet. For our first trip, we did a lot of research online and read as many blogs as possible to get an idea of what our budget should be.
Your budget depends on a couple of factors:
How long do you want to travel? A budget looks different for a 3-month trip or a 2-year trip. Our goal for our first world trip was to travel for a year. That helps narrow down the amount of money you’re going to need.
Where do you want to go? Asia is much cheaper than North America for example. You don’t need to focus on specific countries just yet, but take a look at cost of living on different continents.
What kind of traveler are you? We started by staying in dorm rooms and booking the cheapest accommodation that we could find to save money. But it didn’t take us long to figure out this wasn’t going to make us happy if we had to keep that up for 1,5 years.
All these factors decide what your ideal travel budget should be. So let’s dive into our 6 ways to afford long-term travel.
1. Save and spend
The first method is pretty straightforward. Once you figure out your budget you start saving money until you reach your goal. And then you travel until that money is gone. Easy peasy lemon squeezy.
Saving money is something that can be quite fun and sometimes you’re going to hate it. Getting closer to your goal gives you that adrenaline rush but having to say no to plans with friends – because you need that money for your travels – is no fun at all. It’s all about finding the right balance.
We find it works best to set aside money for travel when you get your paycheck. Put it in a separate account that you can’t reach, in case you do see that one cute item you absolutely need to get. Take a look at all your expenses and dump anything that you don’t use or no longer need. Sell items that are in good shape but are just sitting around in your closet. Don’t be shy and ask companies if you can get a discount or a better deal. You’ll be surprised at what is possible if you just ask.
Once you’ve hit your goal and start traveling set a budget per day and keep track of the money you’re spending. It’s easy to lose track of this and in the beginning, everything looks cheap and fun and you’re on vacation, so why not. But you’re not on vacation and you want to stretch your budget as far as possible without it becoming a ball and chain that’s keeping you from doing anything. There will be days that your underspending and they compensate for the days your overspend. Again, it’s all about finding the right balance and being smart about the money that you’ve worked so hard to save.
Keep in mind that if you’re traveling like this you do need to go home at some point and that’s hard if you have no money left. Set some money aside that allows you to return home and survive until you find a job again and are back on your feet.
2. Working holiday visa
A working holiday visa is a great option if you’re under 30 because it allows you to earn money while you travel. Most people end up in Australia but there are other countries that offer this visa as well. You have to apply for this visa before you’re able to go.
Keep in mind that you do need to save up some money before you go. You have to pay a fee to get your visa and you have to book a flight to the country of your choice. Once you get there you might need to book accommodation before you’re able to start working. And don’t forget about the practical side like vaccinations and other expenses you might have before departure.
There are a lot of Facebook groups for working holiday travelers that help you find the right kind of job and let you in on everything you have to set up once you get to your destination. Having a local bank account saves you a lot of money on withdrawal rates and conversion rates, which means you can travel for a longer period.
3. Housesitting
If you can’t apply for a working holiday visa another great way to travel without breaking the bank is by housesitting. This way you cut the biggest cost from your budget which allows you to do and see more or travel for a longer period of time. Most housesitting gigs are offered by homeowners who are looking for someone to take care of their pets but sometimes people just offer their home as well.
There are several ways to set this up. You might know someone, which is the easiest option, but it might not be where you would like to travel. There are Facebook groups to set this up as well. We use Trusted Housesitters because it’s a worldwide platform and at least there is an organization you can reach in case anything goes wrong.
It takes some time to get in the game if you’re new, but make sure your profile reflects who you are and shows you’re an animal lover. You might get invited to a housesit as well and if it’s a match then you’re all set to go!
One thing to keep in mind is to choose housesits that are close to where you are or where you’re going. If you end up paying a couple of hundred euros for a flight ticket for each housesit then it still isn’t very budget-friendly. We usually calculate what we would spend on accommodation for that period and if there is a flight that’s only a fraction of that amount it’s a go.
4. Volunteer work
If you want to combine travel with learning more about the country and its culture or attributing then volunteer work might be for you. But it’s also a way to skip the cost of accommodation and it lets you work without working (see option 3. Working holiday visa).
Once you start looking, you’ll notice that there are a lot of websites that list volunteer work. Worldpackers is one of the biggest ones and the great thing is that you get to read the reviews of previous volunteers to help you pick the right one. There is a lot to choose from, from helping on a farm to teaching English to locals. Or you could be a hostess in a hostel or help keep it clean. There are a lot of animal-related volunteer opportunities as well.
You won’t earn anything with this option but it will help you cut the cost of accommodation in most cases and sometimes even meals are provided. So it helps you to stretch your budget and travel for a longer period.
5. Digital nomad
I’m sure you’ve heard of digital nomads and more and more countries are creating opportunities to lure people to stay longer (and hopefully spend more money and boost the local economy). This way you work while traveling and earn money to keep on traveling. You could set up a business to make a living or freelance and work project-based or money based. Perfect for those of us who like to create our own thing and don’t mind doing it all.
Since the pandemic there are a lot more opportunities to work remotely as well, so you could even have a full-time or part-time job and work from a beautiful location. You could use your weekends or downtime to explore the country you’re staying in. This is perfect if you’re looking for financial stability and just want to do your job with all the additional things that an entrepreneur or freelancer has to face.
Either way, you work and travel. The great thing about this is that you could do this for years and years. The bad thing is that it takes a while to set up and you have to find a rhythm that combines the things you love. There is no easy shortcut and sometimes you might be bumped out that you’re working while everyone is partying. FOMO is real and it will kick your butt. But if you have to work to earn money, why not do it somewhere with great views of the ocean/jungle/mountains?
6. Travel hacking
One of the harder ones if you don’t live in a country with a ton of credit card rewards systems. The United States is still the best country for travel hacking because there are plenty of credit cards where you save points that you use for traveling. And in a country where you use your credit card for anything, your points go up quickly.
The number one rule when choosing this method is to pay off your credit card balance each month! Use it as a debit card and only spend the money you have. It’s not worth going into debt to save up points for traveling. We want to create a financially sustainable way to travel and debt is not part of that.
Pay attention to sign-up bonuses which are usually a bit higher via other people who already use that particular credit card. Check out how many points you get for each euro you spend because that will determine if it’s going to be worth it.
If you have enough points you might be able to book a free (or almost free) flight to somewhere in the world. Or you could upgrade and experience business or first class. Sometimes you’re able to book hotel nights with your points as well.
Be creative and look for opportunities
Well, there you have it, 6 ways to afford long-term travel in a nutshell. Of course, you could take a little bit of everything and mix it up as well. That’s the great thing, you’re in charge and you decide what makes you happy. When your goal is to travel long-term for as long as possible you have to get creative and look for opportunities.
We have so many opportunities in this day and age and although there is no shortcut and it might take some time/effort/work you do have options. So take your pick and start living your best life.
What options do you prefer to afford to travel long-term? Let us know in the comments. And please share any other great ways to afford long-term travel, we’re always interested in new opportunities!
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