This is another one of the questions that we get quite often when we tell people about our trip plans. The answer is both really easy and really difficult. Traveling like this will definitely require a significant amount of cash.
The first answer is that this trip is a priority for us, so we have been saving money. We are extremely fortunate to be debt-free (except for the house) so we can afford to put money towards savings.
The rest of the answer is not as clear-cut. We believe that traveling in the way that we want to may be significantly cheaper than living a year in our normal manner here in the U.S.
In our initial effort to think about the budget for the trip, we gave ourselves a daily limit. We plan to spend no more than $100/day for the two of us. This would be an average of course, because naturally there will be bigger expenses on some days and less on others. We hope to get several of our large flights covered by airline miles, which will help keep the costs down. We also know as we move through different areas of the world, the cost of living will change drastically. We believe that there are places where we can spend much less than our $100/day and some places where the $100/day limit will be a struggle. In addition, we know that there will be certain “adventures” we want to experience that may cost more. But, based on our experiences traveling in the past, we think that the limit is reasonable.
Using the $100/day plan, we can assume we will spend approximately $3000/month. $3000 times our potential trip length of 10-12 months would get us up to ~$35,000 for the two of us. With our savings, as well as perhaps a little income from renting our house, this seems doable. It is quite a bit less than what it costs to live here in Denver for a year!
As for traveling cheaply, stay tuned to the blog for our budget posts. We’ll let you know how easy or difficult it turns out to be to stay within our budget. Also, we might give you some ideas about how to travel more economically and where in the world you can visit without breaking the bank.