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Planning a world trip is a dream many share but few undertake. You might wonder: How much does a Round-The-World Trip (RTW trip) cost? How do you start planning? Do you need a detailed budget for traveling? How expensive is backpacking? What should you include in your travel budget? How do you manage expenses on the road? For us, this long-held dream finally came to fruition, and we approached it with meticulous planning. We tackled budgeting with a two-step approach:
Step 1: Top-Down Guess
We started with internet research, finding recommendations and budget breakdowns that suggested a range of 20-27k EUR per person for a one-year world trip. This provided a rough benchmark to work.
Step 2: Bottom-Up Budgeting
Country Selection: Maroussia and I each made separate lists of countries we wanted to visit. We combined our lists and chose the countries we both mentioned. We excluded countries that were too expensive or ones we planned to visit later in life.
Length of Stay: We determined how long to stay in each country based on internet research and our preference for slow travel. Moreover, we checked if we go in high or low season to adjust budgets slightly.
Budget per Country: We researched each country's weekly cost of living using 2-3 recent blogs, with budgetyourtrip.com being particularly helpful. We decided on a travel style we call "boujee backpackers" — enjoying the social aspect of hostels but preferring private rooms and occasional splurges. This led us to set mid-level budgets for cheaper regions and lower budgets for wealthier countries. Don't forget to adjust your budget for special circumstances, e.g., staying at friends' houses, joining group tours, and planning on expensive bucket list activities.
Additional Costs: We made a comprehensive list of other expenses, including costs to travel between countries (mostly flights/buses), health and travel insurance, SIM cards, and visas. For flights, we looked at current prices. Insurance costs were based on known figures, while other expenses were estimated.
Our One-Year Travel Budget Breakdown
By following these two steps, we ensured our budget was both realistic and comprehensive. However, keep in mind that this is just a way to estimate a rough budget, and there is no obligation to stick to your exact travel plan. Prolonging visits or adding other countries is essential to staying happy throughout your travels.
Our final one year travel budget (bottom-up calculation) now is around 35k EUR per person (23k for in-country expenses, 6k on flights, 6k on misc). Interestingly, looking at our one year travel budget breakdown, we found that flights, insurance, and other logistics accounted for about one-third of our total costs.
66% In-Country Expenses (Accommodation, food, etc.) | 33% Other Expenses (Flights, Insurances, Visa's, etc.) |
Budgeting is one thing but...
Keep Extra Funds: We love security and ensured we had way more funds than our actual budget. This way, we wouldn't be at zero upon returning and could handle any unforeseen expenses comfortably. If you can, try to have more money on the side than just the planned budget.
Track your Expenses: To see our actual spend we use TravelSpend to see every expense by category and to maintain a fair setup if one of us pays more frequently. This app helps us stay organized and aware of our spending.
Start Early: If you plan to do a budget for your round-the-world trip, start early and be prepared to adjust your budget. Flexibility and thorough research are crucial for a successful and enjoyable world trip.
Embarking on a world trip is a complex but rewarding endeavor. With careful planning and realistic budgeting, it's possible to turn this dream into reality. Happy travels!
