What comes to mind when you think about taking the trip of a lifetime? Whether it's putting on cold weather gear and set foot on a glacier Antarcticpassing the Big Five on a African Safari, or something that big, it's bound to be a pretty expensive feat. And aside from the usual budgeting tips you've probably encountered (like traveling during shoulder seasons and opting for shared accommodation or transportation whenever possible), you'll need to save a significant amount of money to make this dream vacation list. to come true.
That's why we found the best ways to organize everything, in an extravagant way a weekend getaway on a long journey adventure around the world without breaking the bank, with advice from financial experts and professional travel writers who have done it themselves.
First, figure out exactly how much money you'll need
When it comes to calculating your budget for a trip, your first step should be to research how much things cost so you can get a better idea of how much you'll need to spend. This is how full-time digital nomads and TravelSpill.com founder Giovanni Hashimoto says he was able to enjoy a recent month-long trip to New Zealand without breaking the bank.
“Plan your trip meticulously to avoid unnecessary expenses: plan your daily activities, transportation routes, and accommodation options in advance,” says Hashimoto. “This will help you identify potential cost-saving opportunities and avoid last-minute splurges. »
Travel blogger Riana Ang-Canning, who celebrated her honeymoon in New Zealand in 2023, says it's all about thinking ahead and tailoring your budget to your interests. By adding up all known costs for things like flights, hotels, transportation, and pre-booked activities, as well as estimating additional funds needed for gas, food, and other incidentals, the couple was able to arrive at a more precise figure to aim for.
“We booked our flights almost a year in advance, which saved us a lot of time,” says Ang-Canning. “We set up a separate savings account called 'New Zealand' and put money aside about every month. At the time of the trip, we had already saved all the money we needed and it didn't dent our usual finances.
Once in New Zealand, Ang-Canning continued to track their spending. Researching prices before they left also allowed them to plan a few splurges along the way, including airport lounge passes and an overnight cruise in beautiful Doubtful Sound on New Zealand's South Island.
“In the end, we spent 12,481 NZD (about 7,700 USD) for our three-week trip,” says Ang-Canning. “As a testament to how carefully I researched in advance and how well I know our usual spending style, my estimated budget was $300 NZD (about $184 USD) less than the actual amount.”
Hashimoto and Ang-Canning both recommend setting aside a little extra as a buffer if things turn out to be slightly more expensive than expected or, heaven forbid, in case of unexpected expenses like a speeding ticket or a problem medical.
On this, Rochelle Flynn, founder of the travel planning service Go further, fears that too many travelers underestimate the true cost of their dream trip. This mistake can lead to overspending during the trip and, even worse, higher credit card balances to deal with once you return home. For this reason, it's worth considering hiring a professional if you're struggling to come up with a realistic budget.
“When I work with clients, I give them an overall estimate and then create a savings plan to reach that goal. I check in with them monthly to track their progress and let them know how much of their journey they have completed so far,” says Flynn. “There's something strangely satisfying about knowing that what you thought was a measly $600 in the bank can cover two or three nights' accommodations – you can't wait to save more.”
Contribute regularly to your travel budget
It’s good to start small; remember that every dollar you save counts toward your goal, whether you forgo non-essential purchases or take on a side hustle to help boost your travel fund.
“Take a look at your (finances) and see if there are areas where you can cut back, like eating out less often or switching to a more affordable gym,” says Andrea Osorio, senior wealth advisor at Citi Personal Wealth Management. “Consider setting up automatic transfers from your salary to make saving easier. If you need to reach your financial goals faster, you may also want to look for additional sources of income.
Louise Slyth, communications consultant and freelance writer who self-funded a year-long trip around the world, agrees. “If you can afford it, put a little aside each month, whatever your plans: even small deposits can give you the confidence to take the first step towards your dreams. »
Osorio adds that you also need to be smart about where you store your savings, as certain account types may earn more interest than others.
“Determine what is achievable month to month and create a separate savings vehicle to ensure those funds are earmarked for your goal,” she says. “Also consider your time horizon and choose a vehicle (i.e., high-yield account or CD) that will maximize returns while keeping funds safe.”
According to Nellie Huang, travel writer and driving force behind both WildJunket.com And Mexicotravel.blog, it is important to know your monthly income and expenses. This way, you can have a much clearer idea of your financial situation and determine a monthly savings contribution that is right for you.
“I think it comes down to calculating your finances and always overestimating your budget,” says Huang. “For my first big backpacking trip to South America, I didn't want to go broke, so I set a goal of $10,000 for the five months. In the end, I spent about $7,000 and still had some money left to count on when we returned.
As for knowing when it's a good time to start booking flights, hotels, car rentals and other parts of your trip, Osorio says it depends on how confident you are in meeting your budget goals and your ability to get back the money you spent. spend then.
“Money is a tool that you must use to enjoy life and live it to the fullest,” says Osorio. “It’s important to learn how to use this tool effectively so you can do more of what you love and worry less about your finances.”
Learn how to get the most out of your money
“Aside from budgeting strategies, I recommend taking the time to learn about ways to score travel deals, like the optimal times to book flights and hotels and using price tracking tools,” says Osorio. “It's always a good idea to take advantage of the benefits of credit cards and hotel and airline loyalty programs. This can potentially give you access to airport lounges and even upgrades.
Osorio also says the cost of your trip can vary depending on the type of place you stay, the activities you do, and how much you're willing to pay for transportation.
Hashimoto agrees. “I always prioritize experiences, so look for budget-friendly daily expenses and focus your main budget on what really matters to you,” he says. “Opt for shared accommodation or carpooling to cut costs while still immersing yourself in the culture—it's a great way to make friends and see your destination through the eyes of a local.
Anything else to remember? You can usually save money by being flexible with travel dates, including planning your trip during shoulder seasons rather than peak seasons, or flying on weekdays rather than weekends.
Along the same lines, when it comes to your dream trip, you should only start planning when you and your budget feel ready. There is no need to rush. “You may have to make some compromises on the ‘when,’ but don’t change your ‘where,’” Flynn says. “If you can't afford it this year, you can go next year, and that doesn't mean you can't take a vacation at all this year.”
Osorio agrees. “Avoid spending beyond your means if possible,” she says. “If you need more time to achieve your goal, take it. You might even find better deals.
And even if it seems really difficult to set aside your hard-earned money, it's important to stay motivated and remember why you're trying so hard to achieve your goal.
“Focus on what you will gain, not what you will lose,” says Slyth. “Look at photos of where you're going, remember all the amazing things you're going to do, and most importantly, remember that you're giving your future self an incredible opportunity.”
