What Traveling Has Taught Me About Money
16. Mar, 2010 
34 Comments
Today’s guest post is from Kyle at OnOurOwnPath, who has been traveling with his wife for over 2 years with no plans of stopping. If you wonder how they do it, read on…
Before my wife and I started being nomads, we weren’t really budget people. For instance, my idea of a budget would be looking at my checking account to make sure that it was above $0. Money came in, money went out. I didn’t really know where my money was going to half the time, I just new that I was being paid twice a month and that covered just about everything.
All of this changed, though, when we decided that we wanted to do extended world travel. Obviously, we would need the funds to start doing this, so we started saving money to be able to travel the world. And once we had this money saved, we didn’t want to go about blowing it on every thing that seemed like a good idea. If we did that, our trip would only last a few months.
So, we started being one of those people who keeps a meticulous budget. You know the type. We write down everything and then record it in a special budget spreadsheet complete with pie charts. Even when we pay 10 cents to use the toilet in Ecuador, we write it down. We then play with the numbers to see how much money we have left and what we could possibly do with it. Yes, we play with spreadsheets for fun.
The funny thing is that this is not a natural part of our personalities. Truthfully, I don’t think we could have done this if it weren’t for traveling. One of the unexpected side effects of being on the road has been what we’ve learned about our money.
Comfort is not expensive
We’re not the kind of super cheap travelers who sleep in a cockroach-infested hotel. Don’t get me wrong, we’ve stayed in places that I wouldn’t recommend to my parents, but we try to sleep in places that at least try to appear nice. What we’ve found, though, is that a little extra money goes a long way. For instance in Copacabana, Bolivia we stayed in an immaculate room overlooking Lake Titicaca that we would normally find out of our price range. To compensate for the extra cost while we were there, we decided to spend less money on doing “tourist” activities such as tours and more time just walking around and getting to know the area. As a result, we felt like we got to know the town better and had a wonderful time in the process. Of course, it also doesn’t hurt to wake up to the views of Lake Titicaca every morning.
On the contrary, we’ve also stayed in name-brand plush hotels which cost about 2-3 times a decent mid-range option. And what have we gotten for the extra price? So far, the only advantage that I can find for staying in plush hotels is that they give away better quality shampoo.
Spending should match priorities
Having a budget is all about making decisions. With only a limited amount of money to spent, we can’t do everything we want to do all the time. This makes us evaluate what our priorities are and spend our money according to these priorities. One of our priorities while traveling is to understand different cultures and interact with people in those cultures. So, accordingly, we try to spend our money on things that meet this priority instead of spending it on doing things like adventure activities, like white water rafting. We enjoy those activities as well, but it doesn’t compare to the 3 weeks of learning Spanish and living with a local family in Xela, Guatemala. Having the human connections with our host family and the ongoing connections that we made by speaking Spanish have far outweighed any eye candy that we’ve come across.
A Little Dose of Perspective Helps
If we’ve learned nothing else from traveling, it’s a sense of perspective. It’s hard for us to justify buying anything expensive when we know that the average Nicaraguan family could live off of that money for months. Just the fact that we can afford to even go to these places to see how other people live indicates that we’re not exactly strapped for cash.
So, when we do buy things, we try to buy them with our needs in mind. In the Andes of Ecuador, I needed to buy some long sleeves. Instead of trying to find a North Face store, for instance, I opted to get a locally made sweater less for than $10. Sure, the bright green fabric clashed with the rest of my clothes, but it served me well during my time in the high altitude.
Over the past 2 years on the road I can now say that being a budget-minded person is second nature for us. No matter where our path takes us, this habit will stick. It’s now apart of the fabric of who we are.
When it comes down to it, budgeting is truly not that hard when you can see the truly wonderful things that a little money can do. And we have travel to thank for allowing us to see that.
About the Author
Kyle and his wife can be found writing about their global lives at OnOurOwnPath. They’ve traveled extensively throughout Latin America and have nearly completed a year stint as kindergarten teachers in South Korea. Up next: Southeast Asia where they will try to continue their globetrotting as location independent professionals.
Pic: Tobanblack
Indeed, I’ve long believed that traveling on a tight budget is a blessing in disguise. It encourages you to seek out small, locally owned accommodations (even home-stays and/or couchsurfing with locals) and avoid the sterility of luxury chain hotels that seal you off from any true interaction with the local culture. And of course using local transport to get around (vs. tour buses or renting your own car, both of which marks you as a “tourist”) is the best way to meet the locals. Often that’s the path to stumbling into the most authentic, serendipitous travel experiences.
Then again, penny-pinching too drastically can likewise prove an impairment to the most rewarding travel. Roughing it exclusively in the rock-bottom, flea-infested hotels may well color your view/memories of a place. And when momentarily on the other side of the World, there are sights/opportunities that may well seem a splurge, but if penny pinching too tightly, you’ll likely regret missing such experiences. (e.g. though I’m happily ever on a somewhat tight travel budget – you can bet that I’ll cough up the $165 to fly over Everest whilst I’m in Kathmandu next winter!)
In short, as Kyle so eloquently writes – the trick is to prioritize your rubles. Squeak pennies here – to wisely squander them there.
(And all the while – remain ever grateful that you’re able to whiz ’round the globe at all!)
Global Granny´s last blog ..Guess Where I’m Going Next? Hint #2, 3 and…
Glad you two found a good medium. It took us 6 months refusing to budget and another 6 months of training once it was required to get our budging act barely together. Sure I would love to revert back to spend-whatever-we-want, but to keep the dream of seeing the world alive, I will finally admit, it takes some sense of knowing where all the money goes…And like you said, its fun to play with the spreadsheets and graphs once its all in there! Continued good luck and safe future travels!
Brendon´s last blog ..This is Bogotá
I really liked this post, and not only because I was the same type of person before deciding to reallocate my money toward traveling. I’ve been so consumed saving day to day that I hadn’t even thought of following the same routine on the road. But of course! That makes simple good sense.
Keith´s last blog ..Trackpacking: Explosions in the Sky
Budgeting has never been in our nature – thankfully we’ve somewhat naturally fallen into a pattern of living below our means, which has allowed for a great year since my wife was laid off in which we finally struck out on adventures we’d long been talking about. Now it’s all about figuring out how to keep it going….and budgeting certainly won’t hurt. Plus Mickie loves spreadsheets! Bingo!
Opening your eyes to what is truly needed vs. what is simply wanted can be quite freeing indeed.
AJ´s last blog ..Keep it Blue
Love the paragraph about perspective, Kyle. It’s very true. You have to pull in the reins on what’s important to you. I’m the same – exploring people and cultures on a deeper level is what I’m after over adventure sports. The only thing I want to do is scuba dive, and even that will be done on a budget basis. And yay! to spreadsheets.
Nomadic Chick´s last blog ..Denial
@Global Granny – We’ve met the penny pinchers on the road and it just doesn’t look fun to do it all the time. And if it’s not fun, then why do it? Also, getting decent accommodation improves our outlook on life dramatically.
@AJ – I don’t like people being laid off, but it’s great that you used it as an opportunity! I hope that with the current economic woes, more people take your route and use it to their advantage.
Kyle´s last blog ..Life in the slow lane on Geomundo
Hi Kyle,
what about learning Spanish in Guatemala?
I’d love to have an experience like that, do you have suggestions or contacts?
Thanks!
Daniele
Daniele´s last blog ..Cumbuco kite surfing vacation
Thanks for this great post! I am about to move to Madrid, Spain at the
end of this month. Like the two of you, I never really had to worry about
budgeting before, so it will be a challenge for me. This post just made
me realize that I really have to focus on prioritizing what I want to do
while I am over there. I want to see more of Spain, but also Europe and
beyond!
Thanks again!
Dina´s last blog ..On taking a leap of faith…
If there was one thing I learned while penny-pinching my trip away is that it can make you crazy. I traveled solo several years ago and everything I spent was written down, absolutely everything. By the end of the trip I was so obsessed with making sure I knew where every cent was going I could no longer enjoy a simple splurge.
I feel there’s two things that this did for me: gave me something to do, allowed me a nostalgic way to look back and see what I was interested in at the time.
Budgeting will save you money, no doubt about it, but my lesson is to not let it take over your whole consciousness. Perhaps setting a daily limit in your pocket to not go over is simple enough. Treating yourself once in a while will definitely give you some respite from your budget-weary traveling life.
Thanks for the post, btw! Nice one.
AirTreks Nico´s last blog ..A Guide to Trekking in Nepal
Great post especially because it shows you how one can be frugal without giving up things you love. Also most people think you have to be “Rich” to travel the world like you two are but obviously that is a misconception and really it sounds more fun your way!
Maren Kate´s last blog ..9 Profitable Business Ideas that Make People Filthy Rich
@Daniele : there are numerous schools in Antigua, but we chose one in Xela called Pop Wuj, which I highly recommend. Antigua is a better city for traveling, but Xela has a much better immersion experience.
@Nico : we have a daily budget that we keep within that is flexible depending on where we are and what we are doing. We’re kind of “mid-range” frugal people; the only reason that we catalog everything is so that we know where our money is going to. I agree that obsessing over every penny is too much.
@Maren Kate : We are frugal so that we can do the things we love! I think of them as one in the same.
Kyle Crum´s last blog ..Life in the slow lane on Geomundo
@Global Granny, but you can catch the local bus and then hike to Everest BC, don’t need to spend $165
Just returned back from Nepal, it was fantastic trip and probably will go there next year again 
Vi´s last blog ..What to do in Sydney in February
We also love playing with our budget spreadsheet and the pie charts. It is fun to think about the money we have left, where it will take us and most surprisingly how little it really costs to travel the world. Due to some very beneficial circumstances my wife and I will return to the States after a year around the world with bank accounts only about $15,000 lower than the day we left. Renting our condo, daily budgeting and solid financial planning makes all the difference. And we have yet to stay in a really roughing it room, air-con double room with ensuite bathroom is our standard.
Enjoy your travels in Southeast Asia! We leave in 2 weeks after a great 4 months and head to Bhutan.
Keith´s last blog ..New Found Freedom
This is just an overall excellent post. When it comes to priorities, I have found that often times during our travels, we end up doing things (and therefore spending money) on what we think we are supposed to be doing. We visit the major highlights we read about in a guidebook and we participate in the ‘must-do’ activities.
We should actually be focusing not on that list of highlights but on what we truly want to receive from our travels. For example, I prefer wandering into old markets and the narrow lanes of ancient cities instead of paying hefty entrance fees to the mainstream attractions. As a result, I spend less money while benefiting in a way that is more aligned with my priorities and therefore more satisfying.
Earl´s last blog ..There Is More To The World Than The Pyramids Of Giza
I like traveling to be like spontaneous especially if you have somebody with you. The adventures and risks is kinda worth it for future BIG travels.
Jesse´s last blog ..Spend Your Holiday In Seminyak Bali Villas
We’ve yet to really take budgeting on fully, but it is coming soon. I am surprised that we haven’t taken it on sooner because we are pretty frugal overall and I personally am someone who likes to keep track of stats and all that. This post has got me motivated to start.
Jay´s last blog ..Helping a Neighbor in Need
Thanks for an insightful post on budgeting and traveling. In my travel lifestyle, I’ve learned to befriend budgeting.
Sonya´s last blog ..Most Green Hotels In San Francisco?
I have found this article really useful. I love travelling and sometimes I believe it’s better to travel with little money and enjoying more the people and the place.
I totally agree with making a budget and I do a monthly inflow and outflow sheet. It is helpful for me to see where money can be saved or shifted to fit priorities. Makes a lot of sense to me. Very informative post.
Arlene´s last blog ..The Travel Blogroll is Now Open for Business
I truly admire WHAT you and your wife spend money on when traveling. One of the most rewarding experiences is being able to interact with those of a different cultural background. You actually grow from interacting with those who have different beliefs, customs, rituals, and worldly insights from you.
As an African safari travel agent, I always tell my clients how powerful a tour through a local township is. Not only are you able to immerse yourself in the local culture and interact with unique and interesting people, but you are also able to help sustain the community and its economy when you participate in sustainable tourism company tours. Africa is one of the greatest places to experience a cultural / eco-friendly tour.
wow wonderful excellent nice information is collected but i want some more information any way this is nice blog looking for more updates
A great post.
I religiously recorded every single transaction on our first travels 2 years ago. At the time this was to make sure we weren’t going to run out of money before the end of the trip!
It’s been really useful since then for planning our current trips and trips in the future – seeing exactly how much food, accomodation, travel and fun/touristy stuff are in each country.
It also makes it easier to resist buying ‘stuff’ once you return home. If you know that the money you’re thinking of spending on the latest gadget / car / whatever could also get you for example: a month in buenos aires learning to Tango and eating steak every day, then it’s much easier to resist buying ‘stuff’ you don’t need!
Ben Moulam´s last blog ..A Treehouse in Nelson
Hey guys,
Great post and I just checked out your site and like it a lot as well. We left for our trips pretty much at the same time in January 2008 and it’s fun to compare what you’ve gotten up to in that time with what I’ve done.
I’m not much of a penny pincher these days but as my savings dwindles and my earnings fail to replenish them, I have started to become a lot better at budgeting. I still live like a backpacker but I will stay in single rooms instead of dorms and drink cocktails and splash out on a fancy meal from time to time. Or fly instead of taking a 24 hour bus. Stuff like that. But I balance my times of extravagance with months where I spend virtually nothing while I work in exchange for accommodation or volunteer.
It works for me and every needs to strike that balance.
Take care,
Kirsty
Kirsty´s last blog ..How I Wrote My First Ebook
I like traveling and it’s really help my spirit be fresh!
You have a great philosophy on travelling, I wish you well on your upcoming venture in Southeast Asia.
I like the idea of buying cheaply and locally when you need something, and you can always give it away to someone else who will appreciate it when you no longer need it yourself.
Heather on her travels´s last blog ..Modern luxe at Hotel Heritage Av.Liberdade in Lisbon
thank you for sharing this post.. very interesting.. i like the idea that comfort doesn’t necessarily mean expensive..
Xpat´s last blog ..How We Were Kicked Out Of The Park?
Kyle, I’m just catching up on RSS from when we were offline and just saw your article. Great piece. I think we’re quite similar to you – we don’t go for the bottom line pennypinching – but we are very aware of our budget and if we spent more on one thing (e.g., accommodation) then we have to make it up elsewhere (e.g., food or activities). Since food is a priority to us, we’ll sometimes splurge for a good meal or bottle of wine and stay in a cheaper hostel to make up for it. Most people wonder if we’ve won the lottery, but we’ve learned to live large on a small budget through travel and sticking to our priorities.
Right now we’re splurging for a nice place…it feels great to have our own bathroom and a bug-free environment. Worth it, even if we do eat empanadas every day
Audrey´s last blog ..Travel: When Less is More
Kyle,
I enjoyed your post. I completely agree with you that staying at name-brand “luxury” accommodations doesn’t necessarily give you extra value for your money – except maybe the shampoos. We started a website devoted to the best budget-friendly locally owned accommodations around the world because that’s what we look for when we travel. We actually think you end up getting a lot more for your money in the end by staying local – original places, where the innkeeper cares about the details, where you are not just comfortable but also welcomed.
Please check out our site when you get a chance: http://www.darngooddigs.com. Maybe you have an all-time favorite place from your travels that you’ll consider nominating for us?
Hello there everyone how are you. I am looking for information advice anything that your inspired minds can offer will be appreciated. Me and my girlfried were travelling around Florida for a few months last year then to England for 5 months and are now back in America staying with friends. We both adore travelling and want to go to South America and would love some information on how much the costs are to live and sleep. As you can imagine America and England have been pretty expensive being that we both worked a total of about a month during that time.
Our travel fund at the moment is about $1000 total and was wondering what suggestions people had….I am a sports coach/teacher with degree. Girlfriend is teacher with degree and masters in English. We ae willing to work along the way….but how far could we get with those funds….
Thanks everyone you are all great.
Kyle, Great Post…
I agree with you. Traveling is a good way to gain a different perspective on things, being one of those – money. I experimented that on my last couple trips where I decided to scale down on my expenses, by couchsurfing, using local public transportation, and even buying my own groceries instead of eating out all the time. What I learned too is that reducing your expenses doesn’t, reduce at all, the fun and excitement of your travels.
Norbert´s last blog ..Tips on How to Move Cheap and Quick Through New York City