How to Travel the World Without Breaking the Bank

Countless people dream of traveling but assume that they need to wait until they retire or have loads of money saved up to make it a reality.

One of the most common goals that people set for their retirement is to see parts of the world or even parts of the United States that they’ve never gotten to visit before.

Traveling is fun and fulfilling, but it can also be costly. However, there are some steps you can take to circumvent the high prices and start seeing the world earlier than expected.

Traveling certainly requires you to make some sound financial decisions, but contrary to what you may have heard, you don’t need to be among the super-wealthy to see parts of the world that you’ve dreamt of visiting.

Be Realistic with Your Goals

This may seem like a bit of a letdown, but you need to be realistic with your travel goals. While you don’t have to be super-wealthy to see different parts of the world, there are probably some trips that just aren’t financially realistic, at least not right now.

If your goal is to see different cities on the other side of the world, be realistic about how you’re going to go about that.

Most people can’t bankroll a $30,000 trip to various countries in Europe, but they can take six $5,000 trips over the next eight years. Being realistic about your timeline and your destinations is one of the most important parts of traveling on a budget.

Set Your Travel Budget

When trying to understand how to budget for a trip, you need to figure out how much the trip should cost.

Before you start picking out dream locales or shopping for plane tickets, it’s important that you decide how much you can reasonably spend. It’s also a good idea to remember that while you may want to visit numerous locations, you don’t have to be in a race to get to all of them in the next year.

Build a Budget

Decide how much you can reasonably afford to spend on a trip and start building your budget.

Depending on where you’re at on your financial journey, you may not be able to afford a flight to Italy to visit some of the historic sites. If so, don’t get frustrated by what you can’t do, and focus on what you can.

Look at Your Options

Evaluate your options. If a trip to Italy is the only travel goal you have, you can save money to make the trip a reality, but you may not be able to reasonably go within the next year.

Be willing to make it a three-year goal and save money over the next 36 months. If you have other, more affordable trips that you want to take, be willing to start with them.

Write Down Costs

Sit down and make a list of the costs that you can expect on your trip. Be sure to list everything from airfare to lodging to attractions that you want to visit.

It will probably take some time to research how much it costs to do certain activities, but you need to know how much money you need to save.

Cut Back on Spending

Making a travel budget is essentially about saving money, which means you’ll probably need to make some changes to your current spending habits.

Start packing your lunch before you go to work so you can cut down on dining out. Instead of going out to dinner three nights a week, cook dinner at home. Saving money is easier than you think, but it requires making some changes to your spending patterns now.

The goal is to start traveling without going into debt.

At some point, you’re going to have to pay for your trips, and putting them on credit cards only means that you’ll be paying interest on the trip long after it’s over. Build your budget and be willing to stick to it once you’re on your trip.

Choose Affordable Destinations

Even if you have a specific destination in mind for your dream vacation, be willing to look at some other options that offer more affordable amenities and accommodations.

Some parts of the world are simply more affordable to visit than others, but that doesn’t mean that they’re unappealing.

Typically, Southeast Asia, parts of South America and Central America, certain parts of Africa, and most of Eastern Europe are all affordable travel destinations that have plenty of unique things for you to enjoy.

If your goal is to travel but you’re not committed to only seeing a particular spot, look for places that you can visit affordably.

Look for Non-Peak Travel Dates

In the same way that some areas are more expensive to visit than others, some dates are more expensive than others.

For instance, a one-week trip in the middle of July, when many people are planning vacations, is usually more expensive than the same trip would be in the middle of October. With this in mind, look for ways to cut down on your expenses by traveling during what’s known as “off-peak” times.

Airlines and hotels typically reduce their prices during off-peak times, which is one of the most important budgeting tips for travelers to remember.

If you want to save even more, consider booking your entire trip on weekdays instead of weekends.

For instance, flying out on a Monday morning is usually cheaper than leaving on a Saturday morning. You can also save on lodging by booking a room for Monday-Friday instead of reserving a room for weekend dates.

Shopping for non-peak travel dates requires some research, but it’s an absolute must for people who are saving money to travel. Be adaptable with your dates and you can save thousands on your trip’s overall cost.

Traveling Light

Cutting down on the amount of luggage that you take with you is one of the most popular budgeting tips for travelers.

On average, the top airlines in the world charge somewhere between $30 and $45 for the first checked bag. A second checked bag can cost up to $60, and a third checked bag carries a staggering price tag of $150.

If you’re traveling with someone else and just can’t get everything that you need in a single carry-on, consider combining luggage in a single piece of luggage and split the cost of the single bag.

While this strategy may not cut down on your overall travel cost by hundreds of dollars, anything that you save on luggage is money that you can use to enjoy your trip.

Planning for Transportation

Spend some time researching the public transportation options for the place that you’re visiting. You can also choose destinations that have good public transportation instead of places that don’t have as many options.

Saving money on a rental car is a great way to save some money on your trip. Additionally, while Uber, Lyft, and other rideshare options are available all over the world, they can get expensive, especially during an extended stay.

Not only is using public transportation a great way to save money, but it also helps you better immerse yourself in the culture of your destination.

Instead of seeing the area from the backseat of an Uber, try to book a train ride.

Saving on Dining

Enjoying local cuisine is one of the most effective ways to truly experience the place that you’re visiting. It’s also a good way to save money during your trip.

While there’s nothing wrong with going out for a nice meal or two during your trip, consider hitting up some small, independent restaurants or street vendors to save money.

It’s important to do some research first, though. Look for reviews to make sure that you’re eating at a place that’s clean and safe, as nothing can ruin your dream vacation faster than food poisoning.

Choose Your Activities Wisely

Look for activities that are more affordable or even free when making your travel plans. There are plenty of cities around the world that have museums, parks, street markets, and other activities that you can visit for little to no money.

While you don’t have to build your entire trip around these options, taking advantage of some of them can help you enjoy the place that you’re visiting without spending more money than you need to.

Book Your Trip at the Right Time

One of the best ways to save money on your trip is to book your flight at the right time. While some people recommend that you wait until the last minute and try to book a flight on an airline that slashes prices to fill empty seats, that’s not always a good idea.

Instead, try to book your flights as early as possible. Typically, airline tickets go up in price the closer you get to the departure date.

Avoiding Tourist Traps

You’ll need to keep track of your expenses during your trip, which brings us to our last budgeting tips for travelers.

Most destination cities are filled with “tourist traps,” which are businesses that are designed to get out-of-towners to spend excessive amounts of money on souvenirs.

While there’s certainly nothing wrong with picking up a memento to remind you of your trip, don’t fall into the trap of buying more things than you need.

Not only will you waste money that you could spend on other activities during your trip, but you’ll end up paying more to bring your luggage back when the trip is over.

Make Your Travel Dreams a Reality

Traveling isn’t something that you have to put off for the distant future.

By implementing these budgeting tips, you can start marking bucket-list destinations off your list and make your travel dreams a reality.