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Have you ever been on a trip and found yourself thinking, “I wish this could last longer?” Whether your ideal getaway involves sipping cocktails on a pristine beach, embarking on a scenic road trip, backpacking through Southeast Asia, or strolling the charming cobbled streets of Europe, I’m sure you’ve wondered how you could afford to travel more extensively or even full-time.

Well, in this article, we’re going to help you get started with planning your finances, and teaching you how to afford full-time travel, so you’re one step closer to hitting the road for months, if not years, at a time. My husband David and I have been able to travel for three full years using some of the more advanced strategies on this list, so we know that it is possible, even though it does take time.

Just imagine working for 5-7 years and then taking an entire year off to travel. If you did that every decade in your 20s, 30s, 40s, 50s, and 60s, you’d have a minimum of 5 years of full-time travel before retirement, smack in the middle of your prime work years. These strategies can set you up for a life of more freedom, adventure, and ample time to live the dream.

So, without further ado, let’s dive into the ten steps you need to take to save up for long-term travel! You can also watch the full video guide below!

1. Track Your Spending and Saving

The first step towards achieving your long-term travel goals is to track your spending and savings. By doing so, you can effectively reduce expenses and increase savings month after month. After all, saving becomes a breeze when you know exactly where your money is going.

As someone who travels frequently, I keep track of every dollar, euro, and peso that I spend. In the past, I used a simple Google spreadsheet to track my spending, but now, I prefer the Mint app. It’s a fantastic tool because it gamifies budgeting, making it enjoyable. The app allows me to easily import all my debit and credit card purchases and automatically categorizes them, giving me a visual representation of my spending. The only manual entry required is for cash purchases which means you can spend less time documenting all of your transactions and more time enjoying life. So, if you’ve ever found budgeting tedious, you might want to give Mint a try.

Once you add all your credit, checking, and savings accounts to Mint, it becomes effortless to get a complete view of your current net worth and keep track of your savings until you hit your full-time travel savings goals. It’s a fun, easy, and highly motivating system that significantly increases your chances of setting a budget and sticking to it until it’s time to embark on your big adventure.

2. Set Up the Right Financial Accounts

A crucial aspect of traveling long-term is having the right financial accounts that allow for easy saving and spending of money internationally without incurring fees. While this may require some research on your part, depending on your country of residence, selecting the right financial accounts can generate hundreds of dollars in passive income per month, so it’s essential not to overlook this potential opportunity.

The first account I highly recommend setting up is a high-yield savings account. With an Ally savings account, for instance, you can earn anywhere from 1-4% interest annually. The best part is that this account comes with no fees and enables you to earn risk-free money every month. Initially, you may only earn a few cents per month, but as your balance grows, you could earn an extra $30-$100 monthly in interest, entirely passively and risk-free.

Personally, I prefer to save about 80% of my money in high-yield savings accounts like this, while allocating the other 20% to stock investments, which come with higher risks, but I’ll delve more into that later.

Next, you need a checking account that does not have international withdrawal fees. The Charles Schwab Investor Checking Account is a great option because it refunds ATM fees on any ATM worldwide. This feature alone can save you $30-$50 a month in ATM fee rebates when you travel. Plus, you’ll get an excellent exchange rate with the bank, so always decline the local ATM foreign exchange rate and use your bank’s rate instead. Accounts like these will really help your money last longer while you travel so you’re not being nickeled and dimed out of your hard-earned cash everywhere you go.

Another benefit of the Charles Schwab account is that it comes with a separate brokerage account, so you can easily invest in stocks and bonds from this account. I recommend putting 20% of your savings in the market, but if your risk tolerance and stock investment knowledge is higher than mine, feel free to invest more. You really can earn more here!

My favorite stock strategies are to buy and hold with the intention of holding the stock forever, or in this case, until I need to sell them to pay for my travels. I also like to buy stocks that pay dividends. Dividends are payments that you earn quarterly or monthly because you own stock in a company. The more stock you own, the bigger your dividend payments will be. The big picture goal is to have enough of these dividend stocks where you can live off your dividend payments without ever selling and cashing out your stock. Although it may take several decades to set up, it’s still a worthwhile goal and can be a completely passive way to earn money to travel full-time.

But investing is a complex topic, and there’s much more to it than what we’ve covered here. If you want to learn even more stock investing strategies, I highly recommend educating yourself on Skillshare. I’ve taken several of their courses on dividend investing, and they’ve helped me to be more confident and successful in choosing good investments. If you want to learn more about investing yourself, click here to get a free month of learning on Skillshare, because knowledge always has the best return on investment!

3. Set Up Automatic Transfers to Savings and Your Brokerage Accounts

Once you’ve got those essential financial accounts set up, the next step is to put them to work for you. And the best way to do that is by setting up automatic transfers that funnel a fixed amount of your income into your savings and brokerage accounts every month, helping you save on autopilot. For instance, if you can manage to put aside $500 monthly, you could send $400 to your high-yield savings account and $100 to your brokerage account.

What’s great about using Mint is that you can track the growth of both accounts simultaneously, which can be a real motivator to keep going every month.

Now, if you’re planning to travel full-time, you’ll need to save up a significant amount of money. To live on a mid-level budget while traveling, you’ll need about $2,500 to $3,000 per person per month. That means you’ll need to save at least $30,000 to $40,000 to fund a year of travel. While it might take around five years of consistent savings to reach that target at a rate of $500 a month, the interest and returns on your investments will help you reach that goal even faster.

4. Get Cashback and Free Travel with Credit Card Rewards

Once you’ve opened these accounts, it’s time to start taking advantage of credit card rewards and earn some cashback. Credit cards are a fantastic financial tool that can give you cashback on your regular purchases and even earn you free flights, which is a significant expense for full-time travelers.

To start earning rewards, I recommend applying for the Bank of America Travel Rewards card. It has no annual fees, and you can redeem your points for travel expenses or cashback on your statement. This card gives us about $50 per month, which is a good return, considering it has no fees at all.

In addition, if your preferred airline offers a credit card, you might want to take advantage of that offer. Airline cards offer great rewards on flights.

However, there are three critical things you need to do to make credit cards work for you and not against you. First, only sign up for one credit card per quarter because these companies usually give you only 90 days to meet their spending requirements and receive a sign-up bonus that could be worth $250 to $750. If you don’t get your bonus, it defeats the purpose of signing up for the card. So, stay focused, meet all the requirements to get your bonuses.

Second, always pay off your credit card balance every month. Remember, we’re using credit cards to earn free money, not to pay money in interest. If you wind up paying interest, then the credit is no longer a benefit. Instead, it can become a real hindrance to your full-time travel dream.

Third, set a reminder on your calendar when your credit card annual fee is due, if your card has a fee. A month before the annual fee is due, assess if you used all the card’s features to the maximum and if the benefits are worth paying the annual fee. If you believe the benefits are worth the fee, then keep the card. But if you don’t, call and cancel the card as soon as possible.

Credit cards do require quite a bit of management, and they are not always free. But more often than not, the benefits far outweigh the costs. With discipline and focus, you can make credit cards work for you and fund your full-time travel dreams.

5. Increase Your Income

Step number five in achieving your full-time travel goals is to increase your income. Let’s face it, reaching your travel goals is much easier if you have more money coming in, and fortunately, there are several strategies you can try to do just that.

Apply for Higher-Paying Jobs

The first thing you can do is look for a higher-paying job. Start by exploring opportunities at your current job. Ask for more responsibilities and a raise, stating that you’re looking for opportunities to learn and grow in your career. A simple conversation with your manager or HR can lead to better pay and a more rewarding career.

If there’s no room for growth at your current company, changing jobs every two to three years can be a great way to move up the corporate ladder and gain valuable work experience. You can also use Skillshare courses to improve your resume and interviewing skills, which can significantly increase your income potential.

Get a Second Job

Another strategy is to get a second job working nights and weekends. Part-time work is usually easy to find in the service industry, such as restaurants, retail stores, and grocery stores. Jobs like these are great for earning some extra cash, and with an extra $600 to $1,000 a month, you’ll be well on your way to achieving your full-time travel dream.

Other ideas include becoming a freelance driver for Lyft or Uber, or renting out a room in your home on Airbnb. However, keep in mind that having a second job can be exhausting in the long run, so it’s best to treat it as a short-term jumpstart for your savings.

Earn an Online Income

My favorite way to earn extra money is online. You can do freelance work on Upwork or Fiverr, such as being a virtual assistant, designing websites or logos, copywriting, or any number of other jobs that thousands of small entrepreneurs need.

You can also create passive income by selling online courses, ebooks, through affiliate marketing on blogs, or earning ad revenue from a YouTube channel. The best part of these online options is that you can take them on the road with you, so you can continue to earn an income while you travel.

However, earning an online income has a steep learning curve, as you have to figure everything on your own, which takes time. Honestly, working a traditional job is much easier in my opinion, but if you can figure out an online income stream, it can be truly liberating and has a higher income potential than traditional employment as well.

One crucial thing to remember is not to increase your spending as you increase your income. All your additional earnings should go to savings and investing. Continue to use Mint carefully to ensure your expenses are not increasing as your income does.

6. Invest in Real Estate

If you plan to save for five years or longer, investing in real estate can be a smart financial move. Although buying property requires a significant upfront cost, it has the potential to net you tens of thousands of dollars when you eventually sell it. Imagine having an extra $30K-$60K in real estate earnings to travel with in addition to your $30K cash savings, simply because you owned a property instead of renting one where your monthly payment goes towards your landlord’s profit instead of your own.

However, investing in property is a complex strategy, and it is important to research your local housing market to see whether housing prices are increasing, staying the same, or decreasing each year. If you live in a depressed housing market where home prices are decreasing, then this strategy may not work for you. Similarly, if you live in an expensive market like San Francisco, where the average home price is 1.4 million dollars, buying a home may be out of budget. In that case, you might want to consider relocating to a more affordable city to pay less for your basic needs and automatically increase your quality of life. Besides, if you love to travel, relocating can be just another adventure for you. So go where the opportunity is and where the dream of financial freedom is actually within your reach.

Thanks to the sale of our home, we have been able to travel for three years and counting, something we would not have been able to do if we had relied only on our salaries to save up that much cash.

An even better investment than a single-family home is investing in duplexes, triplexes, or quadplexes. If you set them up as a business from the start, you can usually get a loan for the entire purchase price of the property. Then you can live in one unit and rent out the other units. This way, you can live rent-free while you save for full-time travel, and when you are ready to leave and travel, you can rent out your unit and earn monthly income from multiple rental units.

While I believe earning rental income is a great way to earn money while you travel, I never recommend renting out your primary residence to travel because it is too risky. If your tenant stops paying rent or damages your property, your one and only source of income is in jeopardy and may require a lot of money in repairs and legal fees to recover. However, if you have two, three, or four tenants, then your risk is more balanced between your properties. This is why I suggest renting out only if you have two or more properties.

7. Sell Everything 

At least six months before your departure, it’s advisable to start selling all your belongings. This not only earns you money but also helps you avoid the expense of renting a storage unit in your home country.

This means letting go of your apartment by not renewing your lease, selling your house and all of your furniture, and maybe even selling your car, especially if you still have a loan on it. However, if you have a paid-for car, it might be best to hold on to it since car rentals can be quite expensive. For cars, try to find a way to store it with a family member for free or rent it out for a year to a friend or family member while you are away. When you go to sell your home, remember to allow at least six months to complete the sale. Sometimes homes sell quickly, in under 30 days, but to be safe, allow at least six months, maybe even a year, in particularly slow markets. Selling everything should be your last step just before you leave.

8. Plan to Travel to Low-Cost Countries

My next tips are related to how to save money while traveling. The first important thing is to plan to visit low-cost countries in Southeast Asia, Latin America, and Eastern Europe. In these areas of the world, country hopping is easy and very economical. As a travel couple, I can tell you that when we are traveling full-time, our expenses can be as low as $4000 per month, which is around $2000 per person in countries like Albania. However, as we enter more expensive cities and countries, our expenses shoot up to $6000-$7000 a month, or $3000-$3500 per person in more expensive countries like Spain and Costa Rica. So, if you want your money to go further, avoid the pricier countries or at least limit your time in them to maximize your budget.

9. Consider Ways to Get Free Accommodations

Another way to save money while you travel is to work for free accommodations. 

Couchsurfing

One option for finding free accommodation is to use couchsurfing.com, a network of travelers who offer to host other travelers for free. However, be prepared to put in some effort to connect with potential hosts and build a relationship with them. This can be time-consuming, but the reward is the opportunity to meet locals and to stay for free.

Workaway

Another option to consider is Workaway.info, a platform that connects travelers with hosts who need help with various tasks around their home, farm, hostel, or volunteer organization. In exchange for your labor, hosts provide free accommodations and sometimes even food.

Trusted House Sitters

If you love animals, Trustedhousesitters.com could be an excellent choice for you. You can take care of a family’s pets while they are away and enjoy their home and city during your free time. Plus, having a furry companion during your travels can make your journey more enjoyable and unforgettable.

Keep in mind that all of these websites require a small annual fee, but the cost is worth it, as you can save money by staying for free with hosts while also gaining valuable experiences and meeting new people. In fact, the site pays for itself with just one free stay.

10. Have a Flexible Exit Plan

Finally, having a plan for the end of your year of travel is just as important as having a plan for how to start it. It is essential to save enough money for plane tickets home and a month or two of expenses to ensure a comfortable return home. It’s even better if you can ask a friend or family member before you leave if you can stay with them for a month until you get back on your feet and re-establish your life. Additionally, it’s wise to start applying for jobs 2-4 weeks before your return so that you can start interviewing as soon as you arrive back.

Our Final Thoughts on How to Afford Full-Time Travel

After a year of traveling, your perspective is bound to change. You cannot predict what you will want to do when you return. You may decide to relocate to a new city, live abroad permanently, or even go in a completely different direction that you cannot anticipate. Expect the unexpected as a year of travel is truly life-changing and beneficial, allowing you to return to work refreshed and hopefully ready to repeat the process. After about 5-7 years, you may be ready for another year of travel.

The best part is that saving for full-time travel becomes easier as you practice and your income rises over your career. Just remember that it is always better to save your money than to save your dreams, and I hope these ten steps will help you fulfill your dreams of full-time travel even faster.

Want even more travel tips? Check out these articles below!

• Discover the Best Travel Gear For Easy Packing and Unpacking
• Get Our Ultimate Guide for Working Abroad
• The Best Travel Apps for Quick and Easy Trip Planning
• How to Plan a Trip Like a Pro