This guide will show you how to plan a year of travel while sticking to a budget and enjoying the adventure of a lifetime. Dreaming of taking a year off to explore the world but are worried about the cost? With the right approach, you can make it happen without draining your bank account.
Hannah and I have been traveling the world full-time for 3 years and we’re not slowing down! We had no idea how our initial plan would work. But by reviewing, adapting, and learning we have successfully found a way to make long-term travel our way of life.
Here’s our best advice on how to plan a year of travel.
Start with a Realistic Budget
The first step in learning how to plan a year of travel is creating a realistic budget. Break down your expected expenses into categories like accommodation, transportation, food, and activities. Research costs for your chosen destinations to get a clearer picture.
Numbeo is a great website for pricing up day-to-day outgoings. You’ll get a pretty accurate view of everything from groceries to data plans. It’s impossible to nail down every single expenditure correctly, so take a broad look and be honest and well-informed about what things are going to cost.
Why it works: A well-thought-out budget helps you allocate funds wisely and avoid surprises. By being realistic you can see a true forecast of how your year of travel is likely to pan out.
Key tip: Over estimate how much things are going to cost – trust me this is much better than the alternative! As your year of travel begins, keep track of your expenditure. Use an Excel spreadsheet or ledger to monitor what you are spending. Adjust your outgoings or travel plans if your budget is way off course.
Give Yourself Some Wiggle-Room
Even the best plans can hit unexpected snags. Knowing how to plan a year of travel includes building flexibility in your budget and schedule. Emergencies, spontaneous opportunities, or fluctuating prices can arise, and having a financial buffer can make all the difference.
Why it works: A little wiggle room will reduce stress and allow you to adapt to unforeseen circumstances. Travel presents lots of not to be missed opportunities so having a kitty for these special occasions means you can enjoy your experiences to the full.
Key tip: Have a separate account that contains your emergency/wiggle-room fund, preferably one that doesn’t have an easy-to-access bank card. This way you won’t be tempted to use it for everyday purchases. If you come in under budget in a month, replenish or top up your rainy day fund.
Choose Budget-Friendly Destinations
Knowing how to plan a year of travel involves picking destinations that match your budget. Countries in Southeast Asia, Eastern Europe, or Central America offer incredible experiences at much lower costs than Western Europe or North America.
If like us you intend to travel the world, consider splitting time between expensive countries and more affordable ones. For example, after visiting Singapore head to Vietnam. Visit the USA but then head to Costa Rica to allow your budget to recover in a more affordable country.
Why it works: Budget-friendly locations allow your travel funds to stretch further. You can still explore the globe, discover amazing new countries, and have incredible experiences on a budget.
Key tip: Research untapped travel gems that won’t break the bank. There is a wealth of information available online to enable you to discover which countries are the most affordable. Don’t limit your travel to the well-beaten path.
Consider Alternative Accommodation
Accommodation can be one of the largest expenses when figuring out how to plan a year of travel. Instead of hotels, opt for alternatives like house sitting or volunteer exchanges. Volunteer sites like Workaway have thousands of listings globally which include accommodation and often 3 meals a day!
House sitting is free accommodation in exchange for looking after homes or pets. Bagging some lengthy house sits can really help keep a budget together. Hannah and I use Trusted Housesitters for 95% of our accommodation, read Everything You Need to Know About Trusted Housesitters for more information.
Why it works: Alternative accommodations keep your costs low without sacrificing comfort. Your experiences can be enhanced by volunteering in households eager to welcome visitors or by house sitting in a lovely home within a community setting.
Key tip: Build a profile on house-sitting platforms early to secure opportunities – don’t wait until you are about to leave for a year of traveling. Rack up reviews by doing easy house sits close to where you live. You will be more likely to secure international house sits with good reviews behind you.
Travel Slow and Book Smart
Fast-paced travel with constant flights and relocations can eat up your budget quickly. Slowing down allows you to save on transportation and accommodation while giving you time to truly experience each place. You can’t see it all in one stint, so make the most of the area you plan to visit and stay a while.
Book flights and trains in advance to help reduce costs but be warned booking too far in advance can have the opposite effect. I’ve found booking 3-6 months is as far ahead as you generally should book for the best deals.
Why it works: Slow travel reduces overall expenses and offers a more immersive experience. You’ll enjoy a new location like a local instead of a tourist, all the while keeping a tight handle on your budget.
Key tip: Keep an eye out for airline sales, these generally happen early in the new year and following school holidays and major public celebrations like Easter. Get yourself on the mailing list for all the large airlines, they’ll be sure to let you know when a sale is on.
Don’t Book All Your Accommodation Yet
Once you have your dates set, it’s quite tempting with all the excitement to start booking hotels and apartments left and right. However, refrain from financially committing yourself to accommodation and places.
Book places with free cancelation and pay-at-hotel options, this allows you to budget for the now and not dig into your travel kitty for a hotel 8 months down the line. Remember, plans can change and new opportunities can arise while you travel. Maintain the flexibility to adapt as you trek around the globe.
Why it works: Cancelation options allow you to change plans if need be or find alternate accommodation options through house sitting or volunteer projects. You can also compare the price of one hotel against another as the time of your stay draws closer.
Key tip: I don’t rate their customer service at all, but Booking.com is a great site for long-term planning and booking accommodation without pre-payment and with free cancelation. Lock in a hotel to give your travel some direction but give yourself financial and travel flexibility by paying later with free cancelation.
Work While You Travel
One of the most effective ways to plan a year of travel without going broke is by working while you explore. Teaching English, freelancing online, or volunteering in exchange for food and accommodation are all excellent options. Read about our top 5 volunteer experiences while traveling, here.
I mentioned Workaway previously but even getting involved in local community projects can help your budget. We volunteered at a food bank in Durham, NC and due to the amount of produce they received we were instructed on every shift to take as much food as we wanted, our grocery bill went down massively!
Why it works: Earning as you go or limiting your expenditure through volunteer projects ensures you won’t burn through your funds too quickly during your journey. It can also provide a sense of normality to your day-to-day life as sitting on a beach sipping cocktails every day quickly loses its charm.
Key tip: Start researching remote working opportunities before you leave. If possible talk to your current employer about maintaining a few regular hours a week online. The world is heading in an online direction and there are lots of remote working possibilities that pay well and can be done at your convenience.
Leverage Points, Savings Accounts, and Deals
When planning a year of travel, travel points can be a game changer. Sign up for credit cards to earn points and miles that can be redeemed for flights, car hire, and hotels. Combine these with deals on budget airlines to maximize your savings. Just remember to always pay off your credit cards right away!
Once you have your travel pot fully loaded don’t leave it in a stagnant account at zero growth. A year’s budget will be a sizeable figure that if placed in an access anytime interest-paying account could be earning you money while you travel.
Why it works: Travel rewards significantly reduce your transportation and accommodation costs. Interest-paying risk-free savings accounts can actively top up your travel pot.
Key tip: Sign up for credit cards that earn points with every purchase and current accounts that allow foreign transactions and free cash withdrawals whilst abroad. The points quickly add up and can be a great help on your travels. However, the cost of using a card that isn’t designed for use abroad can rack up.
Final Thoughts
Planning a year of travel is a difficult task but it can be achieved through careful preparation and smart decisions. By starting with a budget, choosing affordable destinations, and leveraging creative solutions like house sitting or working on the road, you can make your dream adventure a reality.
Learning how to plan a year of travel takes effort, but the rewards are well worth it. For more information about budgeting read my previous article – How to Travel the World on an Accommodation Budget.
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