Managing Your Finances While Traveling Full-Time
Quality Verified
Updated: March 9, 2024
Quality Verified
Updated: March 9, 2024
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Remote work has grown in recent years. Many companies moved to a remote work model during the COVID-19 pandemic, leading to an increased number of digital nomads— remote workers who typically work online exclusively. Ideally, these workers live and work in locations across the globe while keeping their jobs.
Traveling full-time can be exciting as it allows you to experience new opportunities and cultures. However, it also comes with challenges. Having a solid financial plan, acquiring the necessary skills and knowing the factors you should consider can help you prevent mistakes as you explore new places.
How Much Does It Cost to Travel Full Time?
Traveling can be expensive. Doing it full-time will cost you more. It’s crucial to ensure that your finances can support your lifestyle. The first step you should take is to determine how much your travel budget will be.
There’s no one-size-fits-all solution when it comes to budgeting for your travel. The minimum amount of money necessary will vary per person. You need to calculate expenses based on your needs, spending habits and destination.
Questions to Help You Determine Your Travel Budget
A travel budget should be personalized and based on your needs and plans. Asking the right questions can help you estimate how much money you should have.
Research your destination. Find out how people move around. Check the areas you want to visit and determine how you’d get there from where you’re staying. A simple online search may give you an idea of how much commuting fares are. It can be a good idea also to consider the essentials of living in a new area, including
- How will you get to your destination?
- How will you get around?
- What activities or tours do you plan on doing?
Evaluate your finances. If you plan on becoming a full-time traveler, determine if your income is enough to sustain the digital nomad lifestyle. If not, consider other ways to earn money.
Answering the following questions may also help:
- What expenses are you expecting?
- What are your current financial obligations?
- How can you make passive income while traveling?
- Can you get a local job?
- Will your savings be enough?
Aside from day-to-day expenses, you should also prepare for emergencies. Having sufficient emergency funds is essential before you transition into a full-time traveler. This way, you’ll be ready for unexpected situations and expenses, such as stolen money and cards or getting in an accident.
Travel insurance is also important for full-time travelers and can protect against potential significant expenses. It works as health insurance with a medical component. It may cover anything from losing your baggage to getting hurt while doing physical activity.
How to Afford Full-Time Travel
Before deciding to travel full time, consider the various expenses involved. Aside from the cost of reaching your destination, you should consider your day-to-day expenses like housing, food and transportation.
Once you determine the amount you’ll need to fund your trip, your next step is to prepare your finances. Create a budget, find ways to save money, eliminate debt and take advantage of rewards and discounts.
Create a budget
A budget helps you plan and keep track of your spending. You can create a daily, weekly or monthly budget. You can start with the pen-and-paper method or use a spreadsheet. You may also download a budgeting app on your mobile phone for easy access.
Eliminate debt
Pay off any huge debt before leaving, if possible. That reduces the concerns you have to think about while traveling. If you can’t eliminate your debt, start with high-interest ones. If you plan on being a digital nomad, include your debt payments in your budget.
Use saving strategies
A savings account will give you peace of mind. It ensures a safety net in case things don’t go as planned. If you plan on becoming a full-time traveler, it’s best to save as much money as possible. Spend less if possible. Reevaluate your expenses and see if there are areas you can improve.
Utilize travel rewards and discount memberships
Discounts and rewards can help you save money. If you have a travel rewards card, check if you’re eligible for discounts or deals on flights and other travel expenses.
Use miles and hotel points
If you’re a frequent traveler, you may have earned miles on a particular airline. See if you can redeem these points.
Some credit cards also allow users to earn and redeem hotel points. Check if your card provider offers this promo. You may enjoy complimentary nights at participating hotels.
Preparation Checklist Before Becoming a Full-Time Traveler
While money is one important factor to consider when preparing to travel full time, it’s not the only one. It’s a good idea to conduct a health assessment, acquire new language skills and discuss work conditions with your employer. These steps can help make your trip less stressful.
Assess your health
Whether you have a medical condition or not, making sure you’re healthy before going on your trip is advisable. Visit your doctor and arrange checkups. Check if there are required vaccinations.
Inform your family or friends about your plan
Since you’ll be in a different location for an extended period, it’s best to inform your family or friends about your plan. You can also ask them to check on your house from time to time or get your mail and packages.
Acquire necessary skills or knowledge
It would help to practice commonly used phrases to make communicating with locals easier. For instance, learn to say please, excuse me and thank you in the language of the country you’re visiting. Sentences and phrases related to buying or asking questions will also be beneficial. Consider downloading a translation tool or application.
Research the places you want to visit
Learn about your destination, including the local food, weather and culture. It’s important to avoid disrespecting traditions and culture. Research tourist areas and dining hotspots you can include in your travel plan.
Ensure your employer provides remote work
If you aren’t working remotely yet, discuss your options with your employer. Make sure they let employees work remotely to avoid issues. Let them know of your plan to travel but assure them that you’ll still take care of your work responsibilities.
What to Do With Your House When You Travel
When planning your trip, include your home. Determine what you’d do with it. If you’re renting, talk to your landlord about the termination of your rental. Then, figure out where you’ll keep all your things. If you don’t want to let go of your rental unit, you must continue making monthly payments.
Homeowners, on the other hand, have three options. You can rent your home, sell it or try a home exchange.
Staying On Top of Your Finances While Traveling
Preparing your finances before traveling helps reduce risks. However, you may still end up encountering financial challenges. Overspending is a possibility. Many digital nomads, especially freelancers, experience the so-called feast or famine. They have periods when they earn a lot and times when they don’t earn enough.
Proper money management and wise spending decisions can help prevent you from dealing with possible financial challenges.
How to Earn Money While You Travel Full-Time
Having a source of income while you travel full time will help you manage your finances better. Whether you keep your current remote work or not, finding other methods to make money will ensure that you can support the digital nomad lifestyle however long you want. You can also combine multiple methods to generate a higher income.
Create passive income streams
Passive income is one of the best ways to earn money while on the road. You can publish ebooks, blogs or vlogs about your travels or rent a property. You may also want to give investing a try. If you already have investments, consider diversifying your portfolio.
Increase work options
Get another job or side hustle. Explore other online jobs, such as freelancing. Depending on your skills and experience, you can write, edit or translate content. There are also multiple jobs in the IT industry suitable for digital nomads. Many full-time travelers also become social media influencers. If you plan on staying in one place for a long time, you may apply for local jobs.
Generate revenue from what you own
Creating a home inventory before leaving can help you categorize your belongings. Sell the things you no longer use for extra money. If you’re into travel photography, you can sell your photos online. Some companies buy photos and videos they can use for business purposes.
Digital nomads can continue generating income while fulfilling their dream of traveling full time. Finding the best job can be overwhelming with the many options available.
Generally, the best job will depend on your skills, knowledge, expertise and experience. Considering your interests will also make it easier to choose. For instance, travel blogging may be right for you if you love writing. Or, if you’re fluent in two or more languages, you can try translation services. Many companies also outsource web designers.
Is Full-Time Traveling for You?
Full-time travel can be a fantastic experience. However, it may not be for everyone. You should consider various factors, including your health, finances and safety while traveling. Additionally, it’s valuable to think through possible challenges and concerns. Knowing the risks and hardships that go along with the digital nomad lifestyle will help you decide whether full-time traveling is for you.
Resources for Full-Time Travelers
Becoming a full-time traveler comes with many challenges, but having the right resources and tools can make the whole ordeal a bit easier. Below are some resources you may find helpful.
Budgeting Apps
Create a budget and keep track of your expenses using a budget and money-saving app like Mint, You Need a Budget and Goodbudget.
- Centers for Disease Control and Prevention: Learn about pre-travel consultation, the information you need for a health risk assessment and the critical vaccinations and medications you may need.
Renting marketplace
Staying at hotels for long periods can be expensive. A good alternative for full-time travelers is to find affordable accommodations through online marketplaces like Airbnb or VRBO.
- TravelMath Calculator: Get an estimate of expected expenses with the help of this travel cost calculator. This can help you determine your travel budget.
- U.S. Department of State – Bureau of Consular Affairs: Find travel tips based on your circumstances. Be informed about travel advisories and health precautions before traveling. You can also get tips on crisis planning and financial matters.
About Nathan Paulus
sources
- MBO Partners. "Digital Nomads." Accessed November 30, 2022.
- Tourism Academy. "US Tourism and Travel Statistics." Accessed November 30, 2022.