What is the price tag on your dream?
This is the first in a series called How We Saved Enough Money to Change Our Lives and How You Can, Too. Click here to get all the posts delivered directly to your email inbox or feed reader. You’ll want the inside scoop on how we saved $75,000 for the adventure of a lifetime!
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 anymore 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.
Series Posts:
- 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
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Betsy Talbot writes about carving the lifestyle you want out of the life you already have. When she’s not writing, she’s paring down, saving up, and getting ready for a year of travel with her husband Warren.
Related posts:
About Betsy
What you’re doing is amazing and wonderful and empowering. It’s seems like such a bonding experience, too.
In my life, I’ve had a few significant instances when I was clear on my dream and I left the “how” to the Universe. I was clear that I wanted to go to Paris on my 50th birthday but given that I’m an entrepreneur who puts all my profits back into my business, I wasn’t sure how this would happen. Then my husband tells me that each time he writes a check, he rounds up the amount a dollar or two in his check balance. The result after several years? Thousands of dollars of “found” money. Yipee! Paris here we come.
I’ve also heard of examples of “asking” being the perfect vehicle for making a dream come true. A friend wanted to go on a cruise, but couldn’t afford it. Yet, she verbalized this dream to family and friends. Upon telling her brother, he offered to take her on a cruise if she made all the arrangements. So it’s always nice to give others the opportunity to contribute to your dream. And, it’s certainly a gift to have relatives and friends who can afford such generosity.
I can’t wait to hear more about your tips and your story. The great thing about your practical and adventurous path is that you are certain to make your dream come true and will learn so much in the process. We’re all in awe Betsy!
Betsy
Glad we had a chance to finally meet in person.
What an awesome series that you are doing. I would love to pass this along to people I know in my network via facebook and twitter.
All the best and I will be doing my homework to determine my exact number of my dream.
Hoan
Melissa, this has been a huge bonding experience for us. Working together toward a goal makes the sacrifice almost invisible! That’s the one thing I hope to convey in this series – it isn’t just about the money. It is so much more, and as your bank account grows, so will your bond with your partner and your commitment to the dream.
I love that your husband was able to surprise you with a trip to Paris from his daily habit of rounding up. What a great idea! Everyone reading this should start thinking about that every time they get to the grocery store checkout – how easy is it to round up every day? You wouldn’t even notice the impact on your budget.
Hoan, it was great to finally meet you last week, too! You are an inspiration to college grads everywhere and I’m looking forward to your new book.
Betsy, good article! I’m in the same boat. I quit my job earlier this year to make good on some dreams. If you don’t live boldly, you live boringly!
I like the research on travel costs. I haven’t read where you’re going yet, but it is definitely possible to live/travel overseas for the same or less money than you spend at home.
Not sure if this interests you, or if you have already heard of it, but a way to stay for FREE is through couchsurfing.org. There are several people and couples of all backgrounds and ages in all countries who would probably be happy to host you a guests…
Good luck and I look forward to reading more posts!
Brilliant! Really looking forward to this
We’ve already started our lifestlye shift and move towards our dream life. We want to travel and then relocate to Portugal in 2012, having joint goals has created a real bond between us too.
Brook, thanks for the couchsurfing.com tip. We have friends who have done that as well and we plan to try it in a few places. I like your motto of living boldly (who really wants to live mildly?).
Laura, we’re planning on a slow travel route starting in South America next year, so we might just make it to Portugal when you get there!
Having done this myself — saved up to pursue my dream — I can heartily agree that it is both possible and worthwhile. In my mid-30s, I walked away from the substantial income of a corporate career to pursue my dream. The dream was two-fold — start my career over, this time as a writer, and kick-start the change with a six-month solo trek around and across Australia. So I had to save up for the trip and for about a year back home, for rebuilding my career. It took a lot of work and frugal living, but boy, was it ever worth it. My book, Waltzing Australia, recounts my considerable adventures in the land Down Under, while also briefly describing how amazing my life has been since bailing out of the corporate world.
So no one should doubt you that dreams come true — if you do the work. And as you note, it’s amazing how easy it is to cut back when you keep the goal clearly in mind. (Though in my case, I was only saving for one person, so I needed less money — but I had to do my own cheer leading.) Hope you have amazing success in continuing to pursue your dreams — and may many follow your lead.
HI Betsy,
Good to find a fellow traveller! My husband and I travelled around the world for 3 years – 1983-1986 – at a time when the dollar was high. And yes, we did Asia on that low budget, but given my age now I’d definitely pad my budget for some luxuries, especially India. Also in Asia you can do alot with a little money, and you don’t have to stay in expensive western hotels. Stay in small local places where you’ll meet people from the countries you’ll be visiting, and you also will meet interesting fellow travelers as well. Through conversations with them you’ll discover good places to visit and other good tips for lodging, food, etc. We have fond memories of some amazing places we stayed at.
I saved up $10,000 over a few years to get my seed money for what was first to be a one year trip. I did that by always checking in with my self when I wanted to buy something. Did I really need it? Would I really use it? And I found that usually I didn’t need it. And I put money into my savings account at the first of the month, every month before I could spend it. CD’s were high then, so that helped. But if you have the dream you can do it!
I’d love to hear more about your plans.
Kris
What a small world, Cynthia. I just had a friend recommend your book to me! I can’t wait to read more about your experience and how it has changed your life. Thank you for taking the time to share your story.
Kris, what a great adventure! And lucky you to be traveling when the dollar was so high.
We’ve been really strict about putting the money in savings on an automatic deduction, so our budgeting really comes into play in the everyday things we need to buy. I’m so glad you shared your story with us!
Wow — it is a small world. I always feel that, when things fall into place like that, it’s a good sign I’m on the right track.
I like all your budgeting guidelines and information, and I’ve book-marked your blog. I do hope that, once you’re on the road, you let us know what sorts of adventures you’re enjoying. There’s a lot of amazing stuff out there.
Don’t know if you’re actually looking for destination ideas, but I’ve included brief articles on some of the other places I’ve been on my second blog (which combines food history and travel): http://worldsfare.wordpress.com — might give you some ideas. Or do you already have all your destinations set? Wherever you go, it will be amazing. I’ve liked some places better than others, but I’ve never had a really bad time anywhere.
Thanks, Cynthia. It will be nice to have you visit the blog, and of course I will check out your food history/travel blog. I’ve lately taken up the hobby of cooking more for pleasure than sustenance and am really getting geared up for all the exotic and unusual foods we will be eating on our travels (Warren, not so much!).
We have a list of places to go, but part of the “plan” on our “unplanned” trip is to only map out one destination at a time to encourage us to live in the moment and follow our whims. We will start in Ecuador and I expect us to stay in South America for several months before heading over to Africa and beyond.
Can’t wait to see what you have cooking (literally) on your blog!
I loved Equador. You’ll have an amazing time there. If you need a recommendation of a place to stay in the Otavalo area, Chorlavi. It’s simply splendid, was very reasonably priced. http://www.haciendachorlavi.com/
The local bus, for getting around to all the villages in the area, stops right at the end of the entrance road to Chorlavi.
Thanks for the tip, Cynthia. We are actually staying at the the home of friends just outside of Otavalo. We plan on taking the bus all around the area in the few weeks that we stay there, so we’ll definitely hit up Chorlavi.
I’ve added Otovalo as one of my weather locations on the iPhone and check it every day since we’ll be there this time next year. So far it looks just like Seattle – mild temps and rain! Thanks again for the link and bus info.