Tuesday, January 27, 2009

How to Save for a Round the World Trip

One of the reasons that people avoid extended travel is because they assume it is expensive and feel they be able to afford it. This is untrue. One of the myths about travel is that it is pricey. Everyone assume that to travel you need to be rich because all they see on TV are advertisements for expensive holidays and think all travel is like that. But it isn't. However, travel can be very cheap. You can travel around the world for under $15,000 dollars for one year of travel. If you only go cheap parts of the world, you will spend even less.

That may sound like a lot of money but when you consider that covers all your expenses, it is actually quite reasonable. Most people spend more than that in one year. It also sounds impossible to save but you're wrong again. There are many ways to save that much money in a year. It simply requires persistence and making saving money a habit and priority.

That much money is is about $1,200 dollars per month, which is a lot but manageable if you curb you're spending and cut your bills. To save that much money you need to become frugal and cut out your extra spending. It is mind blowing how much money people waste each day. Cut out your extra spending and watch your bank account rise and rise.

The easiest things to cut out are your vices. One cup of coffee a day is $150 dollars a month. A pack a day smoker would save $210 dollars per month. A typical night out on the town can cost around $50 dollars or more in a big city, and since most people go out two nights a week, you could save $400 dollars. Already we have saved $400 or more dollars, depending on your habits.

Those are the low hanging fruit though. The real way to save money is to eat in and consume less. If you are an average person, you probably eat out 5 to 7 times a week. If each meal costs an average of $20 dollars, that is between $400-$560 dollars per month. Eating can cut your cost down to $80 dollars per week. That saves you a lot of money, since you probably already do some grocery shopping too.

Cut out your consumption and buy only things you need. That is the real secret to saving for a trip around the world. Buy only what you need and save the rest. People spend hundreds of dollars a month on little things that they don't really need- DVDs, music, movies, drinks, and a lot more. All of that adds.

If you only eat in and go out once a week, you will only spend $340 per month and save over $800 dollars per month just by doing those two things. To save more money, move into a smaller apartment or get a roommate. Even consider moving home if you have that option.

If you do all of these things, you will be able to save the amount of money you need per month for your trip by simply living frugally and smartly. Your associates may think you are living like a monk and, though it may seem that way at times, picture the prize you have waiting- one year around the world. The trouble will make the victory that much better.