The cost of travelling

Baggage tags > price tags… am I right?

Unfortunately, baggage tags = price tags. The cost of traveling, especially post-COVID, has risen significantly. From flights and accommodations to meals and activities, travel expenses add up quickly. Understanding budget travel and finding ways to save is crucial.

For context, flights to Europe and Asia are about 20% and 60% more expensive respectively than they were in 2019. Mind blowing.

As digital nomads with minimal fixed monthly costs and semi-consistent income, we feel the pressure of rising travel costs. We’ve learned a lot about how to reign in our travel expenses, but we still have room to improve. Here are some affordable travel tips we’ve learned so far.

Top ways to reduce the cost of travelling

Find cheap flights: For many of us, flights are the biggest expense on a trip (For Europeans, you and your $25 flights across the continent wouldn’t understand!). 3 things to focus on to reduce flight costs:

• When you book: Book your flights well in advance or look for last-minute deals.
• Pro-tip, the further in advance you book, the more free your flight feels when you board.
• When you travel: Travel during off-peak times to avoid high prices.
• Now I’m not saying travel during hurricane season, but if retiring with any money is important to you, then…
• What you bring: Avoid extra baggage fees.
• Keep your emotional and heavy, costly, 4-wheeled baggage at home.

Use flight comparison apps to help: websites like Skyscanner or Google Flights to find the best deals. Setup email notifications to hear when the price drops. And, never count out budget airlines.

Affordable travel accommodations: A high nightly rate can get out of hand quickly. If you can reduce it (or eliminate it all together), you’ll be giving yourself 5 stars.

• Family, friends, and strangers: Staying with family, house sitting, pet-sitting, and house-swapping are often free. People (and pets) often appreciate the chance to show visitors around their city. Just be polite, courteous, clean, and help out wherever possible… basic human stuff.
• Fewer stars or no stars: Consider staying in hostels or budget hotels. Travelling is supposed to be uncomfortable when you’re visiting somewhere unfamiliar. Lean into it and drop the act that your trip depends on the silk bedsheets on your hotel rooms king mattress.
• Plus, which one of these will make for a more memorable story? I don't know about you, but none of my memorable stories involve a concierge. 
• Use platforms like Airbnb or Vrbo for affordable home rentals. You often get good WiFi, a washing machine, and somewhere to cook low cost meals.

Unfortunately for my partner, Ella, and I's family and friends, we're continuously learning how to be better house guests, to the point where we may never leave. 

Budget-friendly activities: Cities are often full of free museums, parks, outdoor art galleries, and walking tours. Don’t waste money on tourist trap tours (if you’re reading this while on a hop-on hop-off bus tour, ride it out. You already paid).

• Free tours: Take advantage of free walking tours (but make sure you tip!). Consider following at a safe distance behind another tour just to see what they observe.
• Live like a local: Visit local markets and parks. You can absorb more of the local culture this way and likely see a more authentic side of the city you’re visiting.
• Plus, in these settings, you’re more likely to practice local language and customs than if you’re surrounded by other tourists.

When Ella and I went to the Salt Flats in Bolivia, we saved hundreds of dollars each day by borrowing rubber boots from our hotel and walking 2.5km out to the Salt Flats. It also made for a much more memorable experience.

Other travel Hacks

• Transportation - the checklist to use when trying to get around a city:
• Walk: Exercise, see the city, and save money. Win-win-win.
• Consider biking, scootering, or heely'ing.
• Take public transit: Low cost and avoids traffic.
• Cave and order an Uber... sorry, not sorry.
• Eating - the checklist to use when filling your stomach:
• Cook: If you can, buy groceries and cook where you can.
• Street food and local markets: Often cheaper and offer a taste of the culture.
• Avoid costly drinks: PSA: You don't need a cocktail with every meal.

May I have a glass of water, please? - sincerely, your wallet & body

Why you should budget

Budgeting for your trip can significantly reduce financial stress. Knowing your financial limits allows you to plan activities without the worry of overspending. Additionally, a well-planned budget helps you avoid debt and financial strain after your trip. The peace of mind that comes from having a financial plan means you can focus on enjoying your travel experience without constantly worrying about money.

Lucky for you, we have 2 budgeting templates designed for exactly this:

• Travel expense tracker - a Notion template
• Travel budget planner - for Microsoft Excel, Google Sheets, or Apple Numbers

A year into our digital nomad lifestyle, we’ve compiled all our learnings into these budgeting templates.

How you should budget for travel

1. Create the budget… well that was unexpected.
• Start by estimating the costs of major expenses: flights, local transportation, accommodations, meals, and activities.
• Set financial goals for how much you want to save before your trip.
2. Use a template or an app: 
• With no bias whatsoever, we recommend our Travel expense tracker and Travel budget planner!
• Utilize budgeting apps like Mint or YNAB (You need a budget) to track your expenses.
3. Stick to your budget:
• Keep track of your spending daily during your trip.
• Adjust your plans if you’re spending more or less than anticipated.
• Don’t let finances become too big of an issue during your trip, but remain agile to control any concerns you may have.

Travelling more often and eventually becoming digital nomads would not have been possible without creating and following a travel budget. We know how much we used to spend each day in our pre-nomad lives, and how much we now spend per day as digital nomads. It's essential to understand the numbers in order to make travel a sustainable privilege for the rest of our lives.

Conclusion

Traveling doesn’t have to break the bank. By understanding the costs involved, finding ways to save money on travel, and creating a budget, you can enjoy travelling without the financial stress.

Start planning and budgeting early, and you'll be able to maximize your travel experience while staying within your financial means. Our Travel expense tracker and Travel budget planner can help you achieve your financial goals and make travel planning easier. Happy travels!

The topic of travelling is close to home for us. Ella and I became digital nomads in 2023 in an effort to create a life centred around travel, supported by freelance work. We are fascinated by the digital nomad movement and look forward to sharing what we learn.