How To Save For A Year’s Backpacking Experience

In an ideal world, we would all get the opportunity to travel the globe for a year. But, the reality for the vast majority of us is that it costs a lot of money. And, when times are tough, where do you find the few thousand dollars it’s going to cost?

I get asked this a lot, and my short answer is: it’s tough. You have to make a big commitment, and dedicate your life to scrimping and saving as much as you can. But, once you see the money start to pile up, you will feel yourself much closer to your dream. It will make it so much easier, and you will begin to understand that your commitment is paying off.

Here are a few tips that you can use to get yourself off to the best possible start.

Sketch out a traveling budget

It’s all well and good squirreling your savings away. But, without an idea of the amount of money you need, it’s going to be difficult to set targets. It’s vital, then, that you draw up a budget. Look at where you want to go, and investigate the cost of living. There is a broad range of differences to expect, so if you are trying to cut back on costs, think about spending more time in a cheaper country.

Check the cost of your flights, and include some hotel stays on either side of them. You won’t want to be spending a whole year in a hotel, but they can be handy when you arrive at a new place and are getting your bearings. You’ll also need to plan for getting injections, health insurance, and any passport and documentation you will need. Once you arrive at your total, you should have a better idea of how much you are going to need to save over the next year or so.

Look into your savings

Most people who travel are going to have to dip into their savings a little. Perhaps your parents have been putting aside some money for you each month – maybe talk to them about releasing some of it so you can travel. Many parents set up college funds to help with university fees, of course. And, it can be tough to persuade parents that want their kids to succeed with education to part with that money – but it’s still worth asking. Once you have a figure you can draw on; you will know exactly where you stand when it comes to saving your money.

Reinvest your savings

If you can get hold of any savings, put it into a high-interest account from now until you travel. There are plenty out there, and while you won’t get a great return in only twelve months or so, it all counts. Don’t forget, a few hundred dollars might not get you far in the States. But, in somewhere like Burma or Vietnam, it can go a long way. So, always look for a better savings account, even if it’s only 1-2% higher than your current rate.

Create a personal budget

Next, you will need to work out how much you can afford to save from your earnings. Write down all your income and your essential expenditure. Anything that is left over you save – it’s as simple as that. It’s all about priorities here, and if you can’t go without the new TV or games console, your dream might not become a reality.

Sure, it’s going to hurt at times. Your friends will plan their vacations and invite you. You might get offered tickets to the big game. Birthdays will come and go, and you won’t be able to spend a cent on some nice new clothes. But, if you can take the pain, it will all stack up and mean your trip of a lifetime will happen.

Get a second job

If you still can’t see where to make any savings from your income, try getting a second job. This works on two different levels. First of all, you will get more income that you can use to put straight into your savings. Second of all, you won’t have the time to do anything else – and therefore, will spend less money.

Try getting a gig at a local restaurant, and work hard, be nice to customers, and you can even boost your income with a healthy smattering of tips. OK, so those are your income streams – how about making general savings with everything you buy? Let’s take a closer look.

Spend less

There are hundreds of ways of spending less in life – and some people have made it an artform. First of all, have a think about what you are spending on, and ask yourself if it is really necessary. Girls – do you need that $150 haircut and color? Guys – is the new iPhone all it’s cracked up to be? Neither will do you any good when you are on your travels, so get into the habit of becoming more spendthrift.

Even small things like cutting out your visits to Starbucks every morning can help. That $5 you spend on a latte might not seem much. But, it’s $25 a week, and $100 a month. If you are saving for a year before traveling, that $1,000 could help you live like a king for a month in somewhere less expensive in the world. Start to visualize the ridiculous amount of money we spend on needless things over here. It should drive you on to make even more savings in your general life.

Use special credit cards

Here’s another tip – look into using special credit cards. There are a few types to consider. First of all, try and find a cash back card that gives you money back every time you use it. Do all your grocery and essentials shopping with your card, and transfer the money to pay it back as soon as you get home. You can get anything up to 6% back on all of your purchases, and you won’t have to pay any interest if you pay it off straight away. Sure, it doesn’t sound a lot when you go shopping the once. But, over a year? The average American household spends something like $3,500 every year on groceries. 6% of that sounds a lot less shabby, right?

Another card to watch out for is a frequent flyer card. One of the best cards for frequent fliers is the Chase Sapphire. You can sign up for one and also sign up someone else so they can use it, too. So, if your parents are frequent flyers for work, or you know anyone else who is, get their names on it, and reap the rewards. Save up enough points over a year, and you might get a considerable chunk of money off some of your flights. The card I mentioned above is good for domestic flights only, but many others include international flights, too.

Give up the gym

Got an expensive gym membership? Cancel it – along with your expensive TV packages, and any other membership scheme you pay into. You might not think these little things cost you a lot of money, but it’s all cash you can put into your travels savings. A friend of mine recently canceled everything, from gym membership to their Spotify subscription. They are on course to save almost $1,500 over the year, just by canceling everything. That amount is more than enough to get started on a year’s backpacking.

Let’s face it, a lot of these services won’t be available to you when you go abroad. You might spot the odd bit of cable TV in a hotel or backpackers lodge, or even the occasional gym. But, in the main, you won’t be using any of these services we think of as ‘essential.’ And, if you can get by without them over here, you won’t think about them once when you are backpacking.

Earn while abroad

Another option to think about is making money abroad while you travel. There are several organizations out there that can set you up with a job teaching English, for example. Or, you could try and volunteer. You will get enough money to pay for your board and lodgings, and that’s about it. But, this is one of the whole points about backpacking.

It’s not about staying in luxury hotels; it’s about meeting the people of the world in their own environments. And, if you can give them a little help along the way by volunteering, it makes even more worthwhile. I’ve been through earning money while traveling in an older blog post. Feel free to check it out and get some ideas – it is possible!

OK, so that just about wraps up my guide to saving money for a year’s backpacking experience. I hope I’ve pointed you in the right direction. As you can see, it’s not going to be easy – and it will feel something like hard work at times. But, the only way you can make your backpacking dreams come true is by making sacrifices. And, you will find that the year or so before you leave flies by in no time at all. Just hang in there, and by this time next year, you’ll be trekking across some wonderful desert somewhere else int he world.

Good luck!