10 Tips For Digital Nomads & Extended Sabbaticals
Have you ever dreamt about traveling the world for six months, a year, or indefinitely? Whether you’re a digital nomad or someone wanting to travel for an extended period of time, making the best use of your money can add months of time to your trip and save you countless headaches along the way.
Here are ten tips to help you save money while on an extended travel trip:
1) Create A Realistic Budget
Before you venture off into the great unknown, you must ensure you have a plan for how you will use your money. Start by setting an amount that you feel comfortable spending on this trip. There are reports of people spending anywhere from $10,000 to $50,000 on a year-long trip. It all depends on your travel style and pace.
Gather a list of the potential countries you’d like to visit and estimate how much you would spend in each one.
You can use websites like Budget Your Trip or Champion Traveler to get an idea of what the daily, weekly, and monthly expenses are. You’ll also get a list of prices for common items like bread, coffee, beer, etc.
2) Travel Slow
Traveling slowly will make the process more sustainable for your mental health and your wallet. Instead of trying to fit as many activities into your day as possible, you can instead take things in at a more leisurely pace. The general rule of thumb is that the more you move around, the more you’ll spend. So plan to stay put in a home base for at least a month. Most AirBnBs and hotels offer monthly stay discounts, so be sure to take advantage of those!
3) Consider Alternative Accommodations
Budget-conscious travelers have been avoiding hotels in favor of low-cost hostels for a long time. Now, more than ever, there is an abundance of opportunities to save thousands on your trip by leveraging platforms like:
Housesitting - Free stay in exchange for house sitting and/or pet sitting
Couchsurfing - Free stay while making friends with locals
Workaway - Free stay in exchange for a few hours of work, typically five days a week. Many times meals are provided.
4) Cook Your Own Food
After living arrangements, food is typically the next biggest expense. There are many countries that have inexpensive street food that can save you a great deal in your budget. However, for pricier destinations, it’s advised to cook most of your meals at home. Not only will this help you save, it will enhance your experience of the local culture.
5) Track Your Expenses
One of your biggest challenges may be keeping track of your expenses, especially with the changing currencies. Here are a few strategies to make tracking easier. First, keep all your travel expenses on one credit card and any other expenses from back home on a separate one. Second, pay your bill in full at the end of your week, so you know exactly how much you spent. Third, consider using an app like Trabee Pocket, which allows you to track your expenses in different currencies and set budgets for each country you’ll be in.
6) Have A Re-Entry Plan
After traveling for several months, the last thing you’ll want is to be scrambling to find a job or pay your bills. You may or may not have work lined up for you upon returning, so it can be immensely helpful to have at least three months of expenses in your emergency fund to give you peace of mind while you get settled. If you have family/friends you can stay with, that may ease your landing back home.
4 Bonus Tips
Check visa fees using https://www.ivis. Every country has different limitations and costs associated with their visas.
Visit more expensive countries during their off-season.
Get travel insurance:
If you’re earning an income while traveling for over a year, there is a possibility you can receive your federal taxes back. Meet with a tax professional to discuss the “Foreign Earned Income Exclusion.”
Extended travel can be a life-changing experience, so we hope that you are able to use these tips to keep the party going!
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