How to Financially Plan a RTW Trip

Tips on how to financially plan a RTW trip, including budgets, route planning and other associated costs of a long-term trip.

You’ve been dreaming of this big Round the World trip for years, and now that your goal is finally within reach, it’s time to take a realistic look at how to financially plan a long RTW trip.

With so much to consider, it can be a little overwhelming. You will need to know exactly what you have in your budget, have a rough idea of where you want to go and the route you will take, compare the cost of air, bus, and train fares, and decide how to get the best deals.

Sure, you’ve travelled in the past and already know the many ins and outs. However, planning to travel around the world is an altogether different type of journey. I saved for 18 months before my trip to ensure that I had the money I needed for not only my planned trip but also for insurance, clothing and equipment, vaccinations, and even a small emergency contingency.

Preparation for the trip is complex; so let’s take a look at some of the main primary financial considerations.

Budget Factors

Your budget will include the length of the trip, booking accommodations, planning meals, deciding what to take with you, and how much money you will have on hand. A general rule is to budget around £50-£100 a day, which will provide lodging and food in many countries, particularly if you intend on backpacking and staying in hostels or guesthouses.

It’s almost impossible to travel today without credit cards or emergency funds, so you will need to know where your finances stand. I already had a credit card with a very small amount spent on it before leaving, and my only ‘debt’ was my student loan, which still stands. Accessing your Credit score will show you your full credit score report, where you may owe debts, and the likelihood of you being able to travel without financial worries. If you are in poor credit standing, consider addressing some of the issues in the report and paying off all debts before moving forward with the RTW trip. It helps not to have to be paying things off when you are on the road trying to make your money last!

Once you are on stable ground, make sure you also check off some other essential items. Here are some helpful tips:

Hard Saving for a Travel Trip

I lost count of the people who asked me how I was funding my two-year trip. When I told them I aimed to save as close to £20K as possible, they looked on in complete horror. That’s enough for a wedding, a significant portion of a house deposit, or purchasing many extravagant things, but I didn’t want any of those things. 

I was not given the money, I didn’t inherit it, and my parents would not buy me out of any form of personal debt upon my return. My one simple answer to this recurring question was that I worked and saved all the time. Travel was a priority. 

When saving for my RTW trip, I didn’t buy a new pair of shoes for over a year. If I’ve ever bought clothes, they had been minor pieces and purchased so sporadically that I could hardly remember what it felt like to go on a huge shopping spree. If I went out, sometimes my friends and I would drink beforehand at home. Eating at restaurants was a huge treat. I strategically planned dinners with enough leftovers for lunch the next day, and when it came to the closing weeks in the run-up to payday, I had to indulge in the gourmet of noodles or soup. It was sometimes pretty boring, especially when I couldn’t go out every weekend. But it was all for a positive cause – my big adventure. 

I was also lucky since I was a freelancer for over 18 months, earning more, and I had left a dead-end relationship and, with it, ditched a mortgage and got a total of £3K from their deposit to kick-start the funding.

I also had a lot of travel clothing and gear from previous escapades, which saved me money on new purchases. My parents, friends, and family lovingly gave me travel-related gifts at Christmas and Birthdays.

Every month, I saved around 60% of my overall monthly wage and budgeted the rest for my everyday life. It was not easy, but I survived well. I managed to live in an expensive city like London on a very average wage; it’s not impossible, but it does require dedication and forgoing some typical comforts. 

Travel Destinations

There are as many routes as there are countries. Some destinations are much pricier than others. Take a good look at your travel objectives and coordinate according to your budget and goals. Do you plan to travel to Asia, Australia or South America, where a return ticket from the same country may be the best option? Or do you plan to dip into various continents where a flexible RTW ticket will be better value for money?

Consider several different options, including the time of year you want to travel and look at various travel packages and group tours. 

My initial planning was done month-by-month, with countries slotted together based on the best weather timings and the ease of travel between them. Of course, this changed, but it’s handy to map out a route, especially if you are an expert planner!

Travel Without Flying

Consider how you will travel once you are in a country. Flying is convenient, especially when you need to cover epic distances, but overlanding, while not a time-saver, is typically a cost-saver. 

Take a Road Trip. Travelling by car or bike lets you absorb some culture in places you’d pass over at 800 kph in a plane. 

Scenic Travel by Train. Unlike cars or bikes, though, trains are a communal experience. You share the experience with the locals. 

Experience local buses. The clichéd backpacking image many people might have of buses is the old, rusty, clapped-out vehicles held together by duct tape. Buses and coaches can be an adventure and often take some pretty interesting routes.

Hire a local driver. This immersive way to travel keeps money in the local community. I’ve hired local drivers everywhere, from Georgia to Cuba, who can take you on a day trip of adventures and usually give added cultural insights as you go along. 

Work and Tourist Visas

Do your travel plans involve part-time work? Many countries require an appropriate visa. If you plan to stop off for a while and settle into a work routine in a specific country, consult with their embassy office while still at home to determine what their visa requirements involve. Most countries require a month to ninety days to process a tourist visa, while others request that you apply several weeks before the travel date.

There are times when you will be required to pay for the appropriate visa before you travel. Make sure that you are aware of all the requirements before leaving on your trip. A great site for visa information is Project Visa.

Vaccinations

Make sure to set some cash aside for travel immunizations, especially if you are travelling to a region that is considered to be at a higher risk for disease. Certain remote areas are prone to yellow fever and malaria, so check these out first. For example, a yellow fever vaccination is required for taking a trip to Sub-Saharan Africa and some countries in South America. Your family doctor should be able to help locate information and help with vaccination requirements.

Departure Taxes

Generally, flight tickets include departure taxes in the airfare. However, some countries require an additional departure tax to be paid before leaving their airport. These fees can range from £2 to over £25. And, like everything else, they can add up, so make sure you factor these into your weekly or monthly budgets.

Spending Wisely

Planning financially for your RTW travels requires exploration and research. It took me two years to plan for what ended up being two years of continuous travel.

Prepare for the unexpected, and don’t miss out on the things you want to do – sometimes a splurge here and there is balanced with budget travel elsewhere. And remember, the better equipped you are before the trip, the more enjoyable and hassle-free your journey will likely be!

READ MORE: Looking for further budget, gear and travel tips?

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