Creating a backpackers travel budget

Your budget will depend on the region you choose to travel. Traveling to South East Asia, Africa, Eastern Europe or South or Central America is going to be much cheaper than Australia, Western Europe, New Zealand or North America.

There are four basic aspects to a travel budget:

  • Transportation
  • Accommodations
  • Activities
  • Food

Transportation is the necessary evil that can be controlled to some degree. You can travel with the locals on public buses or in economy class trains. Besides the initial flight to your destination, which is typically one of the first items to go into your budget, you can decide not fly if there’s the ability to travel by slower means. Also, transportation adds up no matter what country you’re in. The more you move around, the more expensive it gets. You will be able to save yourself a lot of money if you stay in one place for an extended period of time.

Accommodations can give you a good estimate on how much you will be spending in a town or city. I can typically estimate how expensive a destination is by the cost of their hostels or budget guesthouses. I usually assume if my budget accommodations are $4 US per night, I will be spending an additional $8 each day. If its $15 per night, I should expect to spend an additional $30 that day in food, activities, and transportation around town, Simply double the cost of my accommodations.  It specifically depends on how you prefer to travel. I personally look for the cheapest option in town. These hostels and guesthouses are typically not for people who need a strip of paper over the toilet, while they convince themselves they are still the first person to sit there. More often than not, its got a friendly group of international travelers whose budget reflects mine. This is also a benefit when you start making friends in a hostel and decide to go out for food, activities, and onward travel. Activities and onward travel will often cost less if you link up with fellow travelers. For example a cab ride or a shared room in a guesthouse will cost less if divided among friends.

Food is on of my favorite subjects while abroad. I love heading into open markets and searching out new things to try. In fact I was able to do this today in Mandalay, Myanmar/Burma. If you can find an open market or street food is typically the most economical way to eat. You’re also able to immerse yourself in cultural foods, which you may miss if confine yourself the touristy restaurants which are typically overpriced. Obviously, markets aren’t everywhere, so look for restaurants where the locals are eating. Typically shows the food is well priced and prepared safely. I realize that street food and markets can cause some interesting bowel movements, but in the end when i return home I always De-worm myself. But, i would suggest that to anyone who has traveled to 3rd world countries upon their arrival home whether they eat from street vendors or not. Also, drinking alcohol can severely deplete your budget.  In some typically inexpensive countries, a beer will be expensive in comparison to food and accommodation.

Activities are the most manageable part of your budget. You either choose to do the activity or you don’t. If i plan to do an expensive activity such as a 3 day elephant tour home-stay, skydiving, or scuba certification you will likely want to balance the cost with a few days of being more thrifty.

There are several ways to look at a personal budget and whats discussed above is what works well for me, but possibly not for everyone. If it looks like it will work for you, make it your own and tweak it along the way, as your  budget has the ability to make or break a trip of a lifetime.

How to keep you and your belongings safe while backpacking abroad

Keeping you and your belongings safe:

  • Don’t keep all your cash in one spot. Just in case you’re robbed, its best to have some backup cash in separate bag, shoe, or pocket.

  • Don’t walk around at night by yourself. Anywhere.

  • If you are robbed, don’t resist. Give them what they want and go your separate ways. Its not worth getting injured or killed.

  • Don’t leave your bags unattended. Not only could they get stolen, but if you’re traveling between destinations, there are cases where people have planted drugs in a tourists bag and use them as a drug mule until they transport the drugs to the destination without the traveler knowing.

  • Watch your drinks and never accept an opened drink from a stranger.

  • Don’t wear fancy jewelry, watches, or clothes. Yes, you will likely stick out as a traveler in the towns and cities you visit, but you don’t need to stick out more than necessary to thieves. I typically don’t travel with any material items i wouldn’t mind losing. This allows me to feel more relaxed when traveling.

  • Walk with a purpose. Walk like you have a specific destination in mind. Don’t give off the vibe that you’re lost. Thieves are attracted to people who look lost or confused.

  • Carry a money belt. Thieves know about money belts, so if you get robbed they will likely find it, but at least you won’t fall victim to pickpocketers. I don’t wear mine every day, but when I’m in cities, i feel more comfortable wearing mine.

  • Its always good to be cautious, but not to the point where you’re too afraid to walk out the door in the morning. Find your perfect medium between fun and safety and stick to it.

  • Be careful using your electronics. Here’s a few stories I’ve experienced:

    • I was in Laos a couple weeks ago (today’s date is 11/3/12)  and a girl fell asleep with her laptop on her stomach in the common area of our hostel. She woke up and someone had taken it right off her stomach.

    • Ipods are a popular item to steal. If you’re listening to your ipod in a bus or train, its a common occurrence for thieves to disconnect the headphones from the ipod, which is typically sitting on your lap. Make sure you keep it in your pocket if you think you may fall asleep.

    • One of the biggest internal debates i have on a daily basis is whether  to bring my camera with me when i leave the hostel. No fun losing a camera or getting it stolen, but you should document your trip. If you decide to take photos, be careful and keep a close eye on the people surrounding you. I was at Carnival in Brazil back in 2008. I was walking around with a group of friends with thousands of people around and one of my friends pulled her camera out to take a photo of the group. Just then, a guy came by grabbed the camera and ran down down an alleyway. Nothing we could do, but maybe not the best idea to pull out your camera with thousands of people partying in the middle of the night.

A lot of the time its just dumb luck when someone gets robbed. You’re simply in the wrong place at the wrong time. Don’t get stuck on the should have, would have thoughts if you do get your things stolen. It happens to the best of us and i promise you, your nerves will subside and you will still be able to enjoy the rest of your trip.

As a closing note, I’ve found I’m always a bit paranoid about my stuff for the first week of a trip and then my nerves calm down and I find my travel groove. I notice that keeping my stuff as safe as possible becomes a subconscious habit and it doesn’t take as much effort to stay safe. So, if you feel that same slight paranoia, give it time and let your nerves settle.

Uncommon packing list for backpacking abroad

Besides the usual t-shirts, socks, shoes list of things to bring that one should be able to put together for themselves, I have some uncommon items to consider for your trip.

  • Sham-wow or Quick-dry towel – Carrying a bath or beach towel, especially in humid and wet locations, can become big inconvenience. In Costa Rica, I was slinging it over my backpack, trying to let it dry out in time for my next shower or surf session. Drying off with a Sham-wow is perfect, as I can wring all the water out of it and put it back in its small plastic container.
  • First-aid kit – Band-aids, antibiotic ointment, butterfly bandages, tweezers, gauze and athletic tape.
  • Steripen – My previous post talk about the specifics of the UV pen, but its a great way to create clean drinking water and also keeps your waste level down as you wont be throwing away all those water bottles after every use. Also, good in emergency situations if you’re in the wilderness and need drinkable water.
  • Laundry Bag – Guard all your clean clothes by bringing a small laundry bag or plastic bag.
  • Rubber flip-flops – You do not want to take a shower in a shared bathroom without them. All the body fluids, dirt and foot fungus are waiting for a tender unsuspecting foot to stick to.
  • Pillow case – I don’t personally carry a pillow case, but i know a few people that are afraid of the cooties and other stains that frequent hostel pillow cases. Could help you from getting head-lice, which I’ve dealt with. It seems the headrests in buses are the culprit for the spread of head-lice.
  • Headlamp or flashlight – Even if you don’t plan to go on any late night walks, if you’re in a hostel dorm, you will definitely want a flashlight if you need to find something in your bag late at night. Your fellow roommates will appreciate it if you keep the main overhead light off if they’re sleeping.
  • Needle and Thread Kit – For rips in your bag and clothing or possibly for a bad wound away from civilization.
  • Anti-diarrhea pills – When you’ve had too much street food and you’ve been sitting on the toilet all night, it is no fun if you have to sit on a bus the next day without these. I have over the counter diarrhea pills and when I told my doctor I was going to South East Asia, he also gave me prescription pills.
  • Multivitamins & Vitamin C- I currently have a cold (10/01/12)  as I write this in Cat Ba, Vietnam.
  • Note Pad and Pens- Whether meeting someone on the street and you want to write down there email or the name of their hostel, to filling out boarder crossing paperwork, its great to have a pen and pad handy.
  • Copies of passport – In case its lost or stolen.
  • Electrical outlet converter
  • Depending on the country, you may want to get the local currency before you arrive. Also, look up the currency exchange rate, so you don’t get taken advantage of when you first arrive.

Feel free to add any items you’ve found helpful in your travels.

Travel alone or with a friend – Deciding the best option for you

It’s a big decision whether to travel alone or with a friend. Depending on your personality and travel goals, I have brought up a few points to consider, which will help you make a better and more informed decision for your upcoming adventure.

Benefits of traveling alone:

  • Create your own itinerary. You are the master of what you want to see and experience. You don’t have to compromise one activity for another which often happens when planning with someone. Just grab your bag and go do and see what YOU want.
  • You choose when you want to be alone. Then, when you feel like it, you can socialize at the hostel.
  • You will come away from the trip with a greater sense of accomplishment for concurring the adventure by yourself.
  • You can travel as cheaply or luxuriously as you see fit. You can decide if you want to splurge on nicer accommodations for a night. You can allow your budget to fluctuate and you don’t have to worry about your travel companion disagreeing.
  • Hurry Up! You don’t have to wait for anyone. No waiting for him or her to go to the bathroom, brush their teeth, floss and get caught up in a conversation with someone else when you just want to get on the road. It’s all in your hands.

Benefits of traveling with a friend or group:

  • Companionship in difficult situations. If you get stuck at bus stop and you’re uneasy about your surroundings, its nice to have someone you trust.
  • If you loose your bag or wallet, you have a friend who can support you.
  •  Its nice to have another pair of eyes watching your stuff if you need to go to the restroom or take a walk.
  • It’s cheaper. You can share rooms, taxis, food costs etc.
  • Often when I’m traveling, if I find something amazing, I enjoy sharing the moment or activity with a friend.

Choosing a Travel Partner

1. Analyze their personality.

When you’re with someone in their comfortable state of mind at home, they are one type of person. If you are able, picture them in a situation when they found themselves out of their element or comfort zone. Did they embrace the situation, or react in fear of the unknown? This is the type of person you are going to be traveling with. As the Italian poet Cesare Pavese said, “Traveling is a brutality. It forces you to trust strangers and to lose sight of all that familiar comfort of home and friends. You are constantly off balance. Nothing is yours except the essential things – air, sleep, dreams, the sea, the sky…”. You want to make sure your travel partner can adapt and will be accepting of new cultures, traditions and values.

2. Does their budget fit yours?

You might be great friends and get along perfectly, but if one person wants to got out every night  for a nice meal, while the other wants to stay at hostel and fry up a frozen hot dog, you may not be the best travel partners.

3. What type of activities are they interested in?

Are they type of person who simply wants to seek out 15 century churches or more of an adrenaline traveler looking to do activities like bungee jumping? Maybe a little of  both?

 

If you cant find anyone to travel with, I suggest checking out FindMeetGo to find likeminded people to travel with.

 

 

Should you quit your job to travel, take a leave of absence, or a short vacation?

I personally decided to quit my job, but maybe that is too harsh of a step for you. I devised some questions to help in the decision making process. I hope they will give you a new angle with your decision to travel long term or short. Some of the questions may not apply to your situation, but for those that do, it’s important to think carefully and be honest with yourself:

  • Is my current work environment something I want to return to? Is my current job my passion, or just “a job”?
  • Am I traveling to feel completely free with no deadlines or obligations to return to? Will I feel fulfilled throughout my trip if I have an exact return date on my mind?
  • Define your priorities. Not to take this post into a dark place, but if you were about to take your last breath on earth, which decision would likely make you happier in the end?
  • Have I saved enough money to allow myself to travel for as long I feel its necessary to reach my travel goals?
  • Am I ok living on a decreased budget in order to travel for an extended period of time?
  • How willing am I to give up the comfort and security of my job?
  • Is traveling a life goal?
  • Am I timing this trip properly? Looking forward, is this the best and most reasonable time for me to travel for an extended period of time?
  • Is the pain of keeping my job and living my current life worse than the pain of seeing it all in the rearview mirror as I leave to travel the world?
  • Is there anything that would persuade me to keep my job? More money? A promotion?
  • Do I care about the opinions of my friends and family if they think I’m making a big mistake by quitting my job to travel?
  • What am I looking to get out of my travels? Educationally? Experientially? Socially?

     

If there are additional questions you feel should be on the list, please comment or message me.

Thanks for reading!

Best credit cards for international travel – Don’t pay foreign transaction fees

The average credit card will charge you a 3% transaction fee. So $90 for every $3000 you spend.  For this reason, you should take a serious look at getting a no foreign transaction fee credit card.

I suggest either Capitol One Venture or Chase Sapphire for your no fee credit card. They also have some great travel rewards, as they cater to those going abroad.

To go into some further details, if you withdraw cash from an ATM, you will be charged a “cash advance fee” which is either 3.0%  of the amount withdrawn or $10.00. Whichever is greater. But, if  its a transaction at a business, there’s no fee.

Nerd Wallet does a phenomenal job breaking down the advantages of Capitol One Venture and Chase Sapphire.

I used a Capitol One credit card in 2008 for a previous round the world trip that took me to 14 different countries. I had no issues with it in any location and NO FEES!

Make sure you let the credit card companies know which countries you are visiting. If you don’t, your card will likely be deactivated due to fraud protection.

Further credit card tips from experience:

  • Best to travel with two cards, just in case one is deactivated, lost, or stolen. I travel with my capitol one credit card and my local debit card.
  • If you are traveling with a card that has transaction fees, you naturally want to take out more cash than needed when you withdraw, so you don’t need to take out money as often. From my experience, I did not feel comfortable walking around the streets with often a few hundred dollars in my pocket, depending on the destination.  Much better to withdraw smaller amounts, so you don’t have such a large portion of your budget sitting in your pocket.
  • Make sure you don’t withdraw too much of one countries currency if you are thinking of crossing the boarder into another currency. Never fun the have the currency converter take a good-sized chunk out of your cash.
  • Write down the credit card contact number and the last 4 digits of your card in case your card is lost or stolen. You need the ability to cancel your card a.s.a.p. I see a lot of tips saying you should make a photocopy of you credit card, but don’t like to have copies of sensitive info (excluding copies of my passport).
  • Be aware that many overseas merchants will ask if you want your foreign transaction to be converted from the foreign currency into US dollars (so you have a better idea of how much you’re taking out). As nice as this sounds, it is much cheaper to do your own calculation. Often, they will charge up to 7% for the transaction inquiry.