How to afford the trip of your dreams
So you want to travel… The first thing I must say is ‘welcome to the club – The best club there is!' but do you know what you are getting yourself into? Beyond the desire and the intentions lays one of the most fundamental aspects of travel, the ability to afford it. Most people spend too much time fixated on the destination and the things to see and do without so much as a single thought of how they are going to pay for it. Nothing in this world is free and once you begin to travel that mindset is easily proven and often tested.
There is no magic formula to copy for the financial planning of your trip. There is not a spread sheet that will allow you to alter a percentage here or a dollar amount there that can be used universally. Do not believe that you have enough or that you will be able to plan every last detail. One of the most poignant realizations is to live within your means; by doing so will lead to some of the most memorable memories of your life.
One of the first decisions you need to make is where you want to go. Based on location and distance from your home will help begin the foundation of the size of budget you will need. The destination may also need to be broken down to a more definite geographic spot. Thinking that you want to go to France is great (I highly recommend it) and yet the reality is that it is a very large place at 212,935 square miles. Choosing specific cities or regions is paramount to early stage planning. Coming from Toronto I would need to take into consideration where I could afford to fly in and also out of. Paris in this example seems like the best entrance and exit point.
Destination also plays an important aspect based on the currency you will need to travel in. France is based on the Euro which may be valued at a higher ratio then the currency you use at home. Purchasing a bottle of Coca Cola at a local shop could be $1 here but in France the exchange rate might push up the purchase price to $1.50. Buying power in the destination you choose may be a benefit or a hindrance. This calculation of purchase power needs to play a part in the decision process.
You’ve chosen your destination, you know that Paris is you starting point and now you need to begin to research one of the most expensive costs: flights. Unless you live in Europe and are traveling to Paris for a weekend trip, flight costs have a bearing on the layout of your trip. Traveling during peak flight seasons or during specific days may increase the price of the flight. Do you want a direct flight or save money on connecting flights now need to be considered. A shorter trip may make every hour lost in transfers not worth the savings. Time is money, both limited and equally important. Length of stay in also important as there may be time restrictions. There are “round-the-world” tickets or other unique regional deals. Check into these options if you have a good idea of where and how much you will be traveling.
(One must note that you do not have to flight in and out of the same city. Most companies allow for multi-destination travel).
The second most important cost when traveling is where to stay. Housing is the second largest expense but can also be an area where you can find savings. Hostels versus hotels tend to be a debate novice travelers may have. There are also other options beyond the typical brick and mortar dwellings. Camping, renting a RV and sleeping within it, couchsurfing (where you sleep on a strangers couch as found on safe and recognized websites under the guise that you reciprocate the gesture when you return home) or even renting an apartment for an extended period of time are among other options. Each has a price that varies on quality, location and season.
So you are going to Paris, France in July for 3 months and you plan on using hostels as your primary sleep dwelling. You have a rough estimate of how much your trip will cost on those factors and it is a very good start. Now is where you need to decide on how you are going to get there. From Paris, to Nice, to Bordeaux, to Lyons – geographically spread out and in need of transportation. Public bus or trains or even possibly cheap discounted airlines are some of the easier choices. There are deals on transportation that may alter your destination path, eg: BUSABOUT: which has travel to cities in defined directions. If you don’t mind sleeping on a bus or train overnight, you might even save some money here too.
The second last cost you need to plan for is actual sightseeing in each destination. Knowing that a museum is free after a specified time on a certain date can dramatically reduce your expenses. Getting “city passes” that give access to a wide range of attractions and sometimes transportation within the city is also economical if it means the price point of being cheaper than buying individually. City passes may also allow for line by-pass which may free up time to enjoy more sights. There may be costs that seem expensive on paper that inflate your budget. Paying extra money to get to the top of the Eiffel Tower rather than the observation deck 1/3 up can be justified based on the notion “when will I return here” mentality. There is no point traveling half way around the world not to experience once-in-a-lifetime moments.
The last major cost is one of the most important: food and beverage costs. Eating locally and out of the touristy areas will definitely decrease the amount of money spent. Establishing a market value similar to home is a good idea so that you can easily compare prices without much thought. A McDonald's burger costs X.XX at home and is about Y.YY in this city. Any meal eaten can be then compared to that Y.YY price and the actual value is easily determined. This also works with beverage prices. A smart traveler will take into consideration tipping customs as it varies based on culture/age/service. You don’t want to insult or be taken advantage of.
There will always be extra costs that come into effect while traveling. Have you budgeted souvenirs or toiletry expenses during your trip? Have you included the money spent on pre-trip costs; like passports/visas, supplies (backpack, travel towel), batteries or proper adapters for any cameras or electronics? Pre-trip costs sometimes are forgotten and can lead to difficulties later on if they overrun any 'spare' money you put aside to cover unforeseen expenses.
After all of this plotting and planning – you should be able to sit down and know how much you are going to spend. The more honest and accurate you are with your budget, the more likely you will enjoy your trip. Planning now will allow you to not worry about it later!
Bon Voyage.
This is a guest post, from a world-famous budgetary genius and world traveller Pete:
Peter