Most people are too polite to ask, but everyone wants to know: How much does it really cost to travel around the world? We think we have a pretty good idea, but just to keep us on track and to help you in planning your own trip, we are going to give you a monthly report of our spending as well as the ways we are making our dollars stretch.
We spent all of October in Ecuador, which uses the US dollar, so no conversions were necessary.
Tracking was done through Budget Your Trip, a great online resource for planning a trip or staying on track once you leave. (The only thing I haven’t yet figured out is how to get a daily average of all the days on the trip, not just the days with expenses. We might be the only people who travel with no-spending days!)
Expense breakdown
| Health Care ($3.00) | |
| Food ($255.61) | |
| Entertainment ($14.00) | |
| Tips and Handouts ($201.00) | |
| Souvenirs ($20.00) | |
| Intercity Transportation ($60.00) | |
| All Inclusive Tour ($20.00) | |
| Local Transportation ($37.75) | |
| Accommodation ($30.00) | |
| Alcohol ($32.00) | |
| Living Expenses ($31.00) |
Total Expenses: $704.36
Daily Average: $22.72
How we saved money
As you know, our trip budget is $100/day. By coming in at $22.72, we are well below projections and have a little padding for days when we might want to splurge or to extend the trip. But how did we get it so low?
- Housing is a big expense, and we are staying for free at the home of our very good friends Jim and Mimi. We could not have asked for a better way to start the trip, both from a cost and an experience perspective. The home is located at an eco-lodge in the Andes Mountains and has a full kitchen, friendly dogs, and hammocks out front. We are eternally grateful for their generosity. (We did stay one night in a hostel in Quito for $30.)
- We buy most of our own food and cook our own meals at home, only eating out for breakfast each day as a way to practice our Spanish with native speakers.
- Warren has been busy recruiting new clients for his website business, and the lodge we are at is his latest client. He bartered for services in exchange for the work, so we have been able to take some tours, eat some delicious meals in the dining room, and have some of our laundry done. This saved us almost $1000 in October. He’s recruited a tour company as well, so I can see this becoming more of a strategy as we travel.
- Tips are a high percentage this month due to the fact we are staying in a lodge. Just because the rent is free and services are bartered doesn’t mean you can skimp on tips for the staff.
- We have been laying fairly low this first month due to adjusting to this new lifestyle and battling some illness, so we do expect our spending to increase as we become more active this month.
All in all, not a bad way to start the trip. There is no doubt we will spend more in November as we take a big road trip around Ecuador, but we are committed to staying within $100/day on average.
A few lessons we’ve learned:
- If the cab is not metered, ask in advance how much it will cost and agree to a price before you leave.
- Eating 2 substantial meals a day - one at midmorning and one in the late afternoon - keeps both the weight and the budget down.
- Rethink the round trip. For example, instead of getting a cab to go into Otavalo, we take a leisurely 45-minute walk downhill, do our shopping, and then take a cab back uphill. We save money and get a little exercise.
Stay tuned for November’s report as we manage our budget while on a road trip around Ecuador and into the jungle.
About Betsy
Love seeing the real numbers! I know there are some people who travel full-time and say how much it costs per year but never break it down. When you do decide to fly or take a train somewhere else, will you put that cost on the day you buy it and then see how the month overall averages out?
Hey, Shannon. Every single expense goes into the mix, including transportation. We used frequent flier miles to get here, which we booked months ago. I should have mentioned it, though.
$100/day includes EVERYTHING - food, lodging, transportation, and Diet Cokes. Keep checking back to see how well we stick to it. We’ll post the first week of each month for the previous month.
It’s nice to see this. In the US, most people refuse to talk about money (culturally we consider that “rude”) but it’s helpful to get a realistic idea of what things cost. I’ll be especially interested to see how things shift when you don’t have free lodging or find yourself in a more expensive country.
Eleven years ago my husband and I did a 9 month RTW trip and at the end I posted our expenses for the whole trip on our website. A lot of people were shocked. I just looked and from what I calculate, we spent an average of $120 a day (across the entire trip) for the two of us then and that included 3 months in Europe with a car.
Kristina, it is weird for people to ask us about money. I always thought that would be the biggest question - how we saved it and how we’ll spend it - but most people are too polite to ask. It was something we were really interested in while planning the trip and it was hard to find, so we’re going to be honest about it.
I don’t know that we’ll be able to consistently stick to our $100/day budget all the time, but I think when it all averages out it will be right in line. Months like this really help to average out more expensive travel months down the line, that’s for sure.
Besty & Warren,
How great is that! You guys are doing great and thanks for sharing the numbers. I had a question about your healthcare, maybe you have another post about this. I was wondering is that Healthcare in Ecuador or is that travel healthcare and what did you choose and how did you choose it? I know it is a big question. We are currently debating over getting a seperate insurance policy for our trip to China incase we have to return to the US for an emergency… Thanks for the posts and hope you are having fun.
Paz
Hi, Paz. We prepaid for our travel health insurance before we left. It does not cover us in the US and is really only for major medical problems and emergency extraction. Everything else is paid for in cash.
We paid $560 for 6 months of coverage for the both of us, and when we renew it will go into our travel budget for that month. We were required to have at least this level of insurance for the upcoming trip to Antarctica, so it is possible we will drop our coverage to a lower amount after that trip.
If you bought policies similar to ours, it would only benefit you in an emergency return situation if you also had another insurance policy in the US, since our travel policy only covers us outside the US. I wish I could remember the blog of the couple who chose to keep both US and travel policies both because of their frequent return trips - I seem to recall they spent somewhere like $8,000-10,000 per year on insurance for 2 middle-aged people.
Does anyone else keep two separate insurance policies for this kind of situation? Please let us know how it works for you.
(The $3 in the budget above was spent on medication at the local pharmacy.)
Betsy,
Thank you so much for the break down. I hate buying and needing insurance. I always feel like I am buying something that I don’t need. We definetly can’t afford 8-10K a year on insurance. I think I will look into what you mentioned just an emergency insurance. So crazy…insurance. Thanks again,
Paz
Great cost break down Betsy. I agree with Kristina…it ended up being about $100 a day for the two of us, even in South East Asia…way more in Perth,Australia! We had a meal and 5 drafts each for $5.00 in Cambodia…flew to Perth the next day and had 2 beers for $18.00!!!
Of course, we tried not to focus on the “stretching of the bucks”, and we did regret a few activities that we opted out of. If it is going to make a good story (either for ourselves or others), we tried to do it, over budget or not. Happy trails… Ann
I agree, Tim and Annie. The budget is a guideline, but we aren’t going to skimp on great adventures just to save a few bucks here and there. That’s why we booked the trip to Antarctica (yikes, wait til you see the budget in February!). But we do have to keep it in mind, and tracking through Budget Your Trip makes it easy to see what we’ve spent and how we can do more with the dollars we have.
The one and only time I went to Monte Carlo I had a $25 vodka tonic at a casino, and that was 10 years ago. It is amazing how the same thing can vary so wildly in price from place to place!
We’re not stressing about it too much, but after 2 years of heavy saving for a trip like this, being careful with money is pretty much second nature to us.
Thanks for these details and for all your honesty. People like you help show that nothing is easy, some sacrifices have to be made but at the same time one should not give up on their dream to travel around the world. I have just discovered your blog and am really loving it and looking forward to read all about your trip. Good luck and keep us posted
Thanks, Mariella. It was pretty easy to write this month because it was so low…I’m sure it will be harder to write on the months we go overboard!
People often ask how much it costs for my fiance and I to live and travel on our boat. I give vague answers because it’s really hard to say. There are a lot of expenses to start out but very few when we’re just anchoring somewhere and eating on the boat 99% of the time.
It does help to know what’s worth spending money on and what isn’t! For us, internet access is worth paying for but an expensive slip or mooring is almost never justifiable.
Rachel, it does help to know what to spend your money on. I would much rather cook at home and save our money for trips, excursions, and experiences. Oh, and shoes! Gotta have really good shoes or your feet won’t take you where you want to go.
Very cool - yes, I *was* wondering. I think some of those tips could help me pay for my kids’ college! Now, to find a friend that lives near the college they could live with for free….
Definitely start trolling Craigslist for new friends in your chosen college town, Dwayne. They won’t be suspicious at all.
I have a friend who bought a townhouse in Boston for her son and he and 3 friends rented from her to cover the mortgage during his college years. After his graduation she sold it and gave him the proceeds to start out his new life. Smart mom, lucky timing. Not sure that would be as safe a bet now.
Oh, thanks for the nice breakdown. It’s really awesome that you got to stay there for free… Where did you go on the all-inclusive tour?
Our inclusive tour was a driving tour in Quito with a Spanish guide. We understood *most* of it!
Hi B&W!
You continue to inspire me, and I truly enjoy keeping up with your travel adventures. In fact, you are making me think way outside the box in regard to international travel. I haven’t dreamed very big in my life (yes, a week in Paris would be nice)…and as I travel along with you, I know that you will open up my mind and heart to places I never even considered going before! (And maybe even figuring out how to make a living doing it!)
As you know, I move next month to California, to take on a new adventure of my own. Rather than schlepping all my stuff down the coast in a U-Haul and securing a new apartment (eg, setting up house all over again), I’ve decided to sell or give away everything, and live (simply) with a friend until I decide what to do with my life next. I love the “not knowing” and the feeling of shedding the “skin” of my home and belongings. Both Noel and Jack are in transition as well, and we may all be together in a couple of months - or not. Talk about letting go; this has NOT been easy - lots of emotions and tears! My new job is a 7-month consulting gig, which will likely go permanent, but most importantly, it will allow me become debt-free in a short time. But if I choose not to continue after June 30, I’m thinking a small world tour of my own in July - So I’m getting the passport ready, and letting go of more stuff, so that if the opportunity arises, I (or we, as the case may be) can be free to just GO! Peace Corps, anyone?
Thanks for inspiring us, and finding joy in the adventure, and reminding us that it’s really about relationships and experiences, not acquiring pretty things. (Although sometimes that’s fun in moderation, too). G
Alisa, I’m so excited for your new adventure! You are right - letting go is not easy, but ultimately it is freeing (for both you and the people you let go to find their own paths…which may lead back to you). We’ll be following along on your journey, and if circumstances seem right for world travel in July we hope to see you on the road somewhere soon.
Awesome tips, awesome post! Gosh, you guys are having such an amazing learning experience - so cool!
Thanks, Reema. We really are having a terrific time - even better than I imagined during those 2 years of planning.
Thanks for this very useful information. The biggest expense is always accommodation and I try to exchange my home for another one which is at a location form where I can do short trips to other places. Too true what you said about the taxis and their meters.
Home exchange is a great idea for travel, Inka. A few of our readers have written about that, and if we still had a home I’d be happy to exchange! We’re also looking into housesitting/petsitting since that’s something our friend Michaela Potter at Briefcase to Backpack does to lengthen her travels.
The above mentioned tips are simply worthwhile and useful for many travelers around the world. The planning is an essential thing to save money and spend it carefully while traveling. The Round the world trip is a big journey so it obviously needs a lot of accumulated money with expenditure so planning is a foremost thing to do for all travelers.
Shenandoah, we’re trying to balance being careful with our money and having a great trip - too much focus on either one means a bad trip or a very short one!
I just stumbled across your blog and I’m so glad I did. My husband and I are currently in the middle of saving for our own RTW, we plan on leaving in January of 2012. I love reading about budgets! Anyway, thanks for the great tips. You’re going on the blogroll!
We spent 11 months traveling. Mostly in Asia, Africa and 3 months in Europe. Our total cost with everything including shots, insurance, flights and 90 days bringing along our college age daughter was $35,000. A couple of great tips which impacted our budget. We stayed with Servas families in Auzzie and New Zealand, we brought along a tent through Africa and and we tried to always use public transportation. We kept really good records of our spending and need go a little too cheap at times.