One of the most frequent questions I get is: How did you save enough to travel for a whole year, and how did you make it last? The truth is, with enough drive and dedication, anyone can do it. Here’s how I saved and stretched my money to make my dream of traveling around the world for a year a reality.
1. Financial Planning and Saving
Before I even decided to travel, I had already been saving for a house. But then I realized I wasn’t ready to put down roots, especially with the burnout I was feeling at work. Once the idea of a year-long sabbatical started forming in my mind, I shifted my focus. Suddenly, every bonus and splurge I considered became a calculation: Do I really need this coffee, or could this be an extra day or an exciting experience abroad?
A big part of my success was working with a financial planner. She helped me divide my funds to ensure I had enough for both the trip and a comfortable buffer for job-hunting when I returned. We even invested my 401(k) and long-term savings, so they continued earning interest while I was away. My planner also managed the funds for my trip, sending me small amounts biweekly. This not only helped me stick to a budget, but it also protected me in case of theft—no large sums of money in one place.
If you’re thinking of doing something similar, I highly recommend finding a financial planner who understands your goals. My advisor, Alex, was genuinely excited about my journey, and having her support made a world of difference.
Alex Smith, CERTIFIED FINANCIAL PLANNER™ | Edward Jones | 512-292-7500
Schedule Appt: Jamie McEntire, Branch Office Administrator jamie.mcentire@edwardjones.com
2. Maximizing Credit Card Points
As a former sales rep, I frequently used personal credit cards for reimbursable expenses. I took advantage of this by using two cards: a United Airlines card and an American Airlines card, while already having points with Southwest. Many credit cards offer bonuses, such as 60,000 points, if you spend a certain amount within a specified timeframe. I would wait until I had a big expense (like when my Jeep needed a new transmission), sign up for a new card, charge the expense, and immediately pay it off. This way, I avoided interest while racking up points.
Thanks to these points, I flew round-trip to Europe in Premium on United, round-trip to Australia on American Airlines, and many domestic flights with Southwest, all while barely touching my savings. I also used budget airlines like Ryanair in Europe when trains weren’t an option.
Many airline credit cards, like my United one, also offer perks like Global Entry reimbursement and no foreign transaction fees, which were game-changers during my trip.
Want to learn more about maximizing your credit cards for travel? Check out my blog post: How I Traveled to Europe and Australia for Under $500!
3. Vehicle Insurance
I didn’t want to sell my Jeep while I was away. Luckily, my aunt and uncle had space in their garage for me to store it. My insurance company, USAA, offers a storage mode option, which significantly lowers payments for vehicles not in use. This way, my car was still covered in case a family member needed to drive it occasionally, but I wasn’t paying full coverage for something sitting in a garage.
4. Storage Solutions
I purged most of my belongings before leaving, but there were still some things I couldn’t part with—especially my newly purchased living room and bedroom furniture. I thought of storage as “renting space” for my items and only kept what I absolutely loved. In the end, I managed to fit my entire life into a 10×10 storage unit!
5. Affordable Phone Plan
I wanted a new phone with a great camera for my travels, so I bought an iPhone directly from Apple to ensure I owned it outright. To avoid high international fees, I kept a cheap AT&T plan to maintain my long-time number but used an Airalo eSIM for local data. This allowed me to use Wi-Fi for communication with family and friends over WhatsApp, rather than paying $10/day in international fees.
6. Streaming Services
I realized that Hulu doesn’t work outside the U.S., so I canceled it before I left. However, I kept Netflix and Amazon Prime, which worked internationally. Fun fact: Netflix in other countries often offers content from both Netflix and HBO Max! These two streaming services were enough for me to unwind after long days of exploring, and canceling others helped cut unnecessary costs.
7. Booking Cheaper Airbnb Stays
I learned that booking an Airbnb 1-2 days before arriving often meant scoring a discount, as hosts prefer to fill vacancies rather than let their units sit empty. I also stayed outside of tourist areas, opting for neighborhoods where locals lived. This not only saved me money but gave me a more authentic experience of each place.
Pro tip: Change your Airbnb settings to show the total amount rather than the daily rate. This way, you’ll get a clearer picture of the cost, including taxes and fees, before booking.
8. Cooking at Airbnb
To save money, I often cooked breakfast and occasionally dinner at my Airbnb. Shopping at local grocery stores was a delight—they sell seasonal, fresh produce without all the additives we often find in the U.S. This was not only healthier but also a great way to stretch my budget and avoid eating out every day. I’d also pick up sandwiches from cheap shops or buy wine to enjoy at my Airbnb instead of splurging at bars or restaurants.
By following these strategies, I was able to save, budget, and make the most of my funds while traveling the world for a year. With the right mindset and financial planning, you can turn your travel dreams into reality too!
