Since we made it public that we are actually leaving for a one year trip around the world, I get asked the same questions over and over. How much does it cost to travel around the world? Where do you get the money from? How can I quit my job, travel the world and be financially free?
My wife has to quit her job this year, I quit two jobs in the last 24 months and haven’t had a regular job since September 2010 and hopefully never will have to. So how can we afford to travel to 3 continents, 10 countries and countless cities? Who will pay for my 2 month Dive Master course in Koh Tao? Instead of answering each and every person individually, I decided to let you all know how I we are doing it and how you can do it, too.
How much does it cost to travel the world for an entire year?
In a previous article I already covered how to budget for a trip around the world. In our specific case, we plan to spend something around 2,000€ per month, not including the cost for health insurance (800€), RTW ticket (7,200€) and Dive Master course (1,500€). All in all that makes 33,500 € for the entire year or 2,800€ per month.
In addition to that, there is also fixed monthly cost back here in Germany, like insurances, mortgage payments and all the other monthly commitments you cannot get out of. Fortunately we managed to rent out our apartment and we cut down most of our monthly cost so that we only have to cover about 200€ per month.
All in all that brings us to a grand total of 3,000€ that we need for every month. Sounds expensive, right? At this point most people think that they could never afford that. This brings me to the next question I get asked.
Where do you get the money from? You must really be rich.
I am rich. Yes. Not in the traditional “I am a millionaire” way. Most likely, more than half of my readers have more money than me. Neither I nor my wife have ever inherited anything and both our families have always had just enough to get by.
So how can I say I am rich? I consider myself to be rich, because I am financially free. I work because I choose to, not because I have to (this is actually part of the morning declarations from the T. Harv Eker seminar).
“But you said that the trip costs 3000€ per month. Do you make 3000€ per month?”
No, I don’t. My business does, but I don’t. After I pay all the company bills each month there is less than 3000€ left. So why can I still afford to take the trip?
Since my wife and I decided to take the trip, we took a close look at all our finances and cut down on our cost. We stopped spending on things that we didn’t necessarily need. We saved up all our money that was freed up to cover the cost that we can’t cover through online income. We were able to save about 1000€ each month.
Additionally we sold our car, cashed in two small savings bonds and sold all the clutter we don’t need on ebay. This brought in an additional 3500€.
All in all, the money we saved up enables us to travel the world and come back with exactly 98€ in our accounts, according to our budget.
How can I quit my job, travel the world and be financially free?
Interestingly enough, that is one question that nobody has asked me. Not one single person. Everyone wanted to know how I did it, but nobody wanted to know how they can do it and how long it would take them to get to this point.
I think that is pretty sad. I know that not everyone has different goals and not everyone wants to live a travelling lifestyle. However, I can’t imagine that anyone would not want to be financially free. So why didn’t anyone want to know how they can do it, too?
Just for the record, if anyone wants me to help them to become financially free, I would really love to help you. All you need to do is ask!