Money Matters: The Price of Freedom on the Road

The question I get most often about long-term travel is, "How do you afford it?" The answer is as simple as it is unglamorous: financial discipline. Not hacks, not complicated investment strategies, not collaboration with influencers, just good old fashioned discipline. I saved money, built a budget, and I stick to it. This may sound basic, but you'd be surprised how many travellers relentlessly stress about their bank account simply because they haven't taken basic financial steps to ensure their trip of a lifetime doesn't turn into a decade-long horror show once they return home.

The café in Tunisia where Jo and I spent a lot of time reading, sipping coffee, and enjoying the sounds of the ocean

In this piece, I'll break down the core financial principles that have allowed me to travel extensively without relying on debt or sacrificing long-term stability (once I return home). From establishing a solid financial foundations to handling an expense that sends you over budget, planning for and navigating the financial aspects of travel will not only decrease your stress, but will provide you freedom and flexibility on the road. Whether you're planning a three-month Eurail trip around Europe or a full year gallivanting across the globe, these simple principles will keep you going longer, further, and happier, and may even convince you to keep travelling long after you planned to return home.

Get Your Financial House in Order. We all know people who constantly stress about money, yet we watch them take glamorous vacations that only make things worse once they return home. As long-term travelers, we don't want to be those people. That means getting financially established well before boarding that first flight out of the country.

You don’t need to coordinate every detail with a financial advisor (although that is certainly a smart idea, especially if you are older or already following an investment strategy), but you do need a plan. First and foremost, get out of debt. Debt is a morale crusher even at home, and watching hundreds (if not thousands) leave your account each month for payments instead of experiences is defeating. I’m not saying you can’t travel with existing obligations like a car loan or student debt—many people do—but it introduces stress and potential problems. If the bank unexpectedly calls in your loan while you’re abroad, you might have no choice but to return home. It happens.

Second, consider your long-term financial goals. Saving for retirement is essential, since your travels will not last forever. If your trip is only a few months, you may be able to pause investing without much consequence, but if you plan to be gone a year or more, skipping contributions could mean sacrificing future stability for present experiences. I personally build investing into my travel budget so I can take advantage of market gains while abroad.

Finally, be honest about what life will look like after your journey ends. Too many travelers spend everything they have and come home broke. As tempting as it might be to spend to the last dollar, you still need to be able to eat, pay rent, and re-enter daily life. Whether that means saving extra in advance or lining up a job for your return, it’s a step worth planning ahead.

Build a Budget that Works for You. The number one, most-significant, undisputed, undeniable, consequential part of planning your travels is your budget. BUDGET, BUDGET, BUDGET. Control your money instead of your money controlling you. Budget for food, budget for activities, budget for alcohol. Whatever you do, BUDGET. A good budget won't just make your trip possible, it'll make it enjoyable and sustainable

Now that that is out of the way, let's talk budgeting on the road. At home, most bills are paid monthly, and we plan our finances accordingly. On the road, the same principle applies, but in minute detail. Rather than plan monthly, budget daily. How much can you afford to spend each day on accommodations, food, and activities? That is the question we all grapple with. Establishing the budget isn't hard or arbitrary. A little research on your destinations will give you an idea of how much you need to live comfortably. Some countries, like Germany, the United Kingdom, Australia, and most of the Arabian Peninsula, are expensive, and you could easily spend upwards of 100 USD a day. Others, like Southeast Asia, Mexico, and Morocco, are extremely affordable, and you can live comfrotably on less than 40 or even 30 USD a day. It is just a matter of what kind of travel life you want to live.

Personally, I don't like to change my budget from country to country. Constantly recalculating my projected expenses disrupts my long-term planning. That is just my preference, and I admit it causes its own type of stress as I move between cheap and expensive destinations. In general, I budget 80 USD per day. Almost any traveller will tell you that is extremely generous. More realistically, 50 USD is enough for accommodation, one meal out, a morning espresso, groceries, and an activity each day in most countries.

Whatever number you decide on, stick to it. The peace of mind this brings over the long haul is unreal. You may not even realise it until you meet travellers who constantly stress about their finances (some while spending 100 USD on a night of clubbing and bar hopping). Sticking to your budget cuts both ways. Sometimes, it means saying no to a friend's recommendation as you butt up against your budget ceiling. Other times, it means saying yes to things because you have the money leftover. Your budget is your plan, your permission to spend. It should support your travels, not restrict them. You went through the trouble to save and plan out your money, so why crunch every dollar beyond your established plan?

The No-Debt Doctrine. Our society revolves around debt. We finance homes, cars, season tickets, phones, even our pizza delivery. Debt is ingrained in our daily lives that we don't give it a second thought until the bill arrives. Then we stress about how we are going pay off the credit card as interest accumulates faster than we can keep up. On the road, falling into the debt trap may feel good in the moment, but it will always come back to haunt you later.

Instead, avoid debt in your travels. Save your money, plan your budget, and make this trip of a lifetime a memory that won't turn sour once you're back home. I am not saying don't use credit cards, however. There is a broader philosophical debate on the role credit cards play in our lives that I won't get into here. If you do use a credit card abroad, do so deliberately. A credit card isn't a free pass to go wild; it's simply another avenue to apply your budget. Pay it off immediately to avoid interest, and don't get swipe-happy at the Italian dress shop. If you can use a debit card instead, even better, as your budget will come out of your bank account immediately. No delays, no surprises.

Some travel forums encourage young people not to worry about taking on debt in their travels. Their argument is you have the youth to experience the world now, you will have the job and money to pay for it later, and too many people wait until they have money but not youth to travel seriously. There is merit to the sentiment, but I caution you against following their advice on debt. It is better to postpone your journey a few months, save money, and travel debt-free than to burden your future self in the midst of new careers, marriage, kids, and all the other things life may throw at you.

Sometimes you just have to check out the kangaroos when you're in Australia...even at the cost of a 45 AUD admission ticket

What Happens When You Go Overbudget? Sometimes those must-see sites simply cost too much money. Ephesus in Turkey costs 40 EUR, Pompeii in Italy costs 25 EUR, and the Australia Zoo costs 45 AUD. Even on a generous budget, those expenses can feel prohibitive. At the same time, who knows when you'll have the chance to see them again, if ever? For that reason, going over budget is sometimes ok. For a once-in-a-lifetime event, you can usually find a way to make it work. Maybe that means trimming a day off the end of your trip or adjusting the budget for a few days until things balances out. These occasional splurges shouldn't spell disappointment or stress; they should make you think for a second about how to afford them, then you should have fun. It's the travel equivalent of saying, "let me move some money around." Just don't make a habit of it. Spending too much too often can put you in a financial bind when you should be enjoying yourself.

Ultimately, money is your friend, not your enemy. The idea isn't "I can only afford 50 dollars a day," it's, "I get to enjoy 50 dollars a day." It seems semantic, but that shift in mentality can change the entire tone of your trip. As long as you're on sound financial footing (and not using debt to pay for the adventure), your budget is an opportunity to enjoy something new and exciting everyday. Making hostel dinner with new friends, enjoying a morning espresso in a plaza mayor, or splurging to see Robert Irwin perform with the crocodiles are moments everyone should experience stress-free on their journey. Everyone lives on a budget on the road, so don't worry about coming across as cheap or frugal. We've all been there, and we all get it. Besides, some of the best friends I have made while travelling have been over hostel beers and store-bought pasta.