This is one of the most common follow-up questions I get asked when I tell people that I am traveling the world. Surprisingly, it’s a lot cheaper than you’d expect.
I find that on average, it costs about USD $20,000 a year to travel the world (or roughly $50 a day). For those of us from the Western countries, it’s far cheaper than a regular life at home. It’s much cheaper than living in New York City for a year, where I was before.
This isn’t necessarily the case for those in places with a cheaper cost of living, but for anyone from those places, keep in mind that there are ways to cut this in half or a quarter. Some people travel even more cheaply, but I find $20,000 to give me the right balance of comfort without spending too much/being too extravagant for me personally.
I base this on a rough ratio of 8-9 months in Global South countries (which tend to have a lower cost of living) and 3-4 months in the Global North or upper income countries where things tend to be more expensive. I personally like this ratio and tend to be more interested in visiting Global South countries anyways. $50 a day is hard to sustain in Western countries. For example, on a recent trip to Australia and New Zealand, I blew well past that. But in most of the Global South, one can spend much less than $50 a day, so it averages out at the end of the day (or at the end of the year).
Most people’s reference point for how much it costs to travel are vacations. That’s the only form of travel that they do. But, long-term travel is far cheaper than a couple day or couple week vacation. The longer the trip, you are better able to lower the cost per day. Here is how to reduce three major costs when traveling long-term: transit between destinations, lodging, and food.
Transportation
Transit is often the most expensive portion of a trip. If someone wants to visit a far-flung part of the world, most likely they will fly there (unless they prefer taking a long time to get there). Flights are often one of the most expensive single purchases.
When traveling long-term, though, you fly sparingly. You may need to initially fly to the region of the world you want to visit, but once you are there, you can mostly take buses or trains between places. For example, if you’d like to visit Southeast Asia, it’s best to pick a city in Southeast Asia that has the cheapest flights you can find. If you’re coming from North America, though, that flight is still likely to be pretty expensive: maybe $1,000-$2,000. That’s a one-time purchase, though. Once you are there, you can go between cities or districts by bus (or sometimes train), often for under $10 or $20. Such bus rides may take several hours, but they will get you to the new destination.
Island regions like Oceania or the Caribbean form exceptions to this: sometimes the only way in and out of an island is by flying. You often need to fly between the islands, increasing the complexity of visiting those regions, but for most of the world, you have to pay the upfront cost to get there, and transportation is pretty cheap after that.
Now, I only need to buy expensive flights when I jump to a new region of the world. For example, if I am done with the Old World and want to cross an ocean into North or South America, that jump will require another initial expensive flight. Otherwise, once I am in a region, I can move over to a new region slowly with local transportation.
In general, traveling switches the trade-offs one has to make when on vacation. On a vacation, people often really want to visit a specific location: they want to visit that city they had always wanted to visit or that specific national park. If they don’t visit it on their week or two-long vacation, they won’t see it, and in some cases, they could well never have another chance when they are in this region of the world anyways. Thus, many find it worth it to eat the cost and just visit that place on their vacation. This puts you at the mercy of the market on how much it costs to fly to that location.
I still have my top destinations, but when traveling the world, there are multiple places A, B, and C that I also want to visit even if they are not my favorite. If one of them happens to be cheaper, I can go there next. Once there, maybe the price to go to my favorite destination will suddenly go down. I can wait to see my absolute favorite places and visit the cheaper place first because I have more time.
Lodging
For most people, the next largest expense when traveling is lodging. Lodging is often cheaper when you do long-term stays of several weeks or even several months rather than several days. Most often the price per day goes down.
It is usually also cheaper in the long run to choose places with a kitchen rather than hotel rooms. That way you can cook meals yourself, which significantly reduces daily costs. In much of the world, I find Airbnbs to be the cheapest option, and generally staying in a home provides you a kitchen with which to cook your own food. But in some parts of the world, Airbnbs are unusually expensive and in other booking sites might be cheaper, so it does vary.
I rarely stay in hostels, only doing so if I absolutely have to (and I’ve only had two in two of the 36 or so countries I have visited so far). I’m not 19 anymore and find that I prefer my own space. I am naturally social while I am out and about, so when I go home, I prefer a quiet place to unwind when I need to be by myself. That said, some people can cut my $20,000 a year expense in half by staying in hostels, and others by a quarter by mixing hostels with pitching a tent somewhere some nights. That’s great for them, and I do enjoy both camping and communal living. But I can only handle doing it for a few nights before I prefer the comfort of my own place. It’s worth it to me to have my own space.
Food
Learning the local cuisine is a fantastic idea, yet cooking your own food is much cheaper than eating out all the time. Unlike on a vacation, where most people eat out every single meal, generally, I find balancing tending to cook your own food most foods to be the cheaper option. In some places, I try to eat out maybe one meal a day, and in more expensive parts of the world, one meal every few days. In most places, though, whether that place has a high or low cost of living, I generally find that I can buy a week’s worth of groceries for the cost of a single meal at a restaurant, so if you do the math, eating three meals a day, that means eating out is 21 times as expensive than cooking on your own.
The other trick with food is to determine cheap but healthy foods you like in the places you visit. Some foods are also healthy and generally cheap everywhere you go, making them my go-to foods to first look for when in a foreign country. I have found, for example, that rice and lentils are generally cheap everywhere and a really healthy source of carbohydrates and protein respectively. They also keep for a long time and are portable if you need to carry leftovers to your next destination. Thus, I often use them as my basis for the dishes I cook, adding spices and other flavors that I can find cheap in that locale to build the dishes I cook myself. (Eggs too are often a good cheap source of protein, but I prefer lentils because they are more portable and don’t go bad or break easily.)
Similarly, the cost of different fruits and vegetables will vary widely in different parts of the world. Often the trick with fruits and vegetables is to just walk through the grocery store or market and see which ones are cheap at that time. Buy those and try them. You may learn about new foods you’ve never heard of. At the same time, there is one fruit and two vegetables that are almost always cheap: bananas, carrots, and lettuce/cabbage (and sometimes oranges). When in doubt, look for these.
In the world of healthy fats, peanuts tend to be another cheap option no matter where you go. If you check your labels properly for the peanuts to ensure no added sugars or other unhealthy additions, all of these tend to be rather healthy as well.
So, lentils, rice, bananas, carrots or lettuce, and peanuts have become my go-tos. These are almost always cheap in pretty much every country I visit. It’s especially helpful to have a list in your head when all the food at a grocery store is in a foreign language. For example, if I don’t have time that day to wander the fruit aisle looking at every fruit, I just grab some bananas.
Finally, be aware of which places sell the cheapest foods wherever you are, because it varies between cultures. In some cultures, supermarkets are the cheapest places to buy food. In other places, street markets where farmers sell what they grow tend to be much cheaper. Sometimes, some foods are cheaper to buy at the grocery store, and other foods like fresh produce are cheaper to buy at a market. It will depend, so one aspect of learning to shop in a new culture is to figure out the best combination of places to optimize costs.
Conclusion
These are the techniques I have honed to reduce cost while traveling the world without destroying the quality of my experience. Different people have different preferences, so if you do travel, you should explore what techniques work best for you. Either way, traveling the world is surprisingly cheap. When people think about how much it would cost to travel the world, they often take the cost of a vacation and extend it to their whole life, but the cost per day of long-term travel is a lot lower than a vacation. At around USD$20,000 a year, you may even find that traveling the world is cheaper than living for a year in wherever you call home.
