Interested to see how our savings is working real-time on our trip? Check out our monthly “expense reports” for the first 3 years of our travel around the world at RTW Expenses.
How much money do you think it takes for two people to travel around the world? Actually, let’s take it a step back. When you think of doing something like that, do you even put a price tag on it, or do you just assume it is out of your reach?
What is the price tag of your dream?
We all have big dreams, and only a few of us ever really turn them into something. There are a host of reasons why, but I think one of the main culprits is a lack of planning. We can’t even comprehend the logistics of making our dreams come true so we never seriously think about making them come true.
We all want to win the lottery so we’ll have the means to make our dreams come true. Some of us actually count on that and play every week.
I hate to break it to you, but that’s probably not going to happen. You have a better chance of making your dream come true through your own hard work and planning.
In our case, we thought it would take a lifetime of saving to be able to enjoy a retirement with a few years of travel. In reality, we will be living our retirement dream 27 years ahead of schedule.
How did we speed up the original timeline?
In order to take your dream from idea to reality, you have to face reality. Instead of thinking that you don’t have the money/time/freedom to pursue your dream, simply take the time to map out what it would take to make your dream come true.
- We did some research of seasoned travelers and found that they spent between $5,000 and $80,000 per year on long-term travel. Find several people who have done something similar to your dream and learn from their experience.
- Where we travel, how we travel, and the speed with which we travel make a huge impact on the amount of money we need. Based on our preferences, we were able to estimate $100/day for long-term travel, which comes to $36,500 per year. Just because someone else can live in Asia for a year on $5000 does not mean that is how we have to do it. Rework the math from your research to accommodate your dream as necessary.
- We decided that we wanted to leave in time to celebrate our 40th birthdays on the road. Creating your timeline doesn’t have to be any more scientific than that. But you have to create a deadline or you won’t ever feel compelled to finish.
- All that’s left is basic math. If your goal is to save 50,000 in 2 years, you have to make adjustments in your spending and saving habits to account for putting $2,083.34 in the bank each month (we’ll address the “how” in a later post).
- How much money do you have now? We had a small savings account for travel that we used as our launch pad for the Big Trip. Whatever spare change you have laying around can be the start to your savings plan, and we’ll show you how we added to this little nest egg in the upcoming posts.
What is your big dream, and what are you doing right now to make it happen? Because if you aren’t actively working on a dream, it would be easy to mistake you for someone who doesn’t have one.
- Where is your money going?
- How to create a budget for big savings or debt reduction
- Necessary and unnecessary expenses
- How to have fun on a tight budget
- Making money off your junk
- Financial success story: living debt-free on a teacher’s salary
- Birthdays and holidays on a budget
- Online tools for managing your money
- Financial success story: teaching abroad
- How we saved enough money to change our lives and how you can, too