How to Travel the world without going in debt?

Many of you might be thinking about travelling around as Christmas is almost upon us again. But many of you might be also thinking of it as affordable only to the rich. Well, in fact, it is not necessarily expensive. Here are some tips for you.

Save over time with a dedicated savings account

Create a dedicated savings account for your future trip long before you actually plan it. “I try to always start with a big cushion... and I try to save up more than I need to.” Said Krista Aoki, an online business manager who is travelling full time now. You may not have enough savings to cover a vacation in full right now, but you can start spending less in certain areas and setting a regular saving plan, then you may have the ability to cover your trip in months. Creating a dedicated saving account for travel budget with robo-advisor app, which can offer you a better interest rates than traditional bank. You can set a financial goal and timeline for this savings account, which will motivate you to achieve it and make saving easier. With this specific goal, you can break it down and divided it into small saving goals for each month, and set aside this certain amount monthly into your dedicated saving account for travel budget.

Set a reasonable budget

The key to avoid going into debt while travelling around the world is to set a reasonable budget, that is, know how much to save in advance. In order to have an accurate estimation of how much you will spend during the entire trip may need a detailed plan of the destinations and schedules, and also calculate every single part’s costs during the trip. According to Jen Avery, co-founder of a budget travel website, “You need to add up four main expenses per day: nightly accommodation, meal spending, daily transportation and activities. Calculate an average cost per day of these.” It’s also a wise choice if you can overestimate the budget a little bit for unexpected costs. Yet still, the whole budget should generally be realistic, affordable, and fully in control.

Minimize your costs during the trip

Once you have a specific budget for your trip, you should stick to it and spend your money logically. In case of going beyond to the budget, it may be a good choice if you can decide where to minimize costs. The costs you squeeze may enable you to extend your trip. Consider lodging, for example, which may take a large portion of costs through the whole trip. Instead of booking hotels, you can look for an Airbnb or hostel, which allows for sharing a room or bathroom with others. Cheap flights can also be easily found using flights booking websites or Apps rather than a specific airline to monitor the price of flights——another way to lower your costs. There are certainly various ways to save but above all, it is a long-term commitment which requires a bit sacrifice and persistence. Every effort will be rewarded and add up to make a big difference. So, best of luck and merry Christmas!