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Travelling can actually be cheaper than living in some places, and you certainly don’t need to be rich to travel.
1. Create a travel budget
There are plenty of people who get the idea to travel somewhere and then just go ahead and book their next holiday. Travel advertisements on television and glossy Instagram pictures of exotic destinations can be very persuasive (especially if you had a hard day at work). There is nothing wrong with it… If you can afford it.
If you need to watch your pennies, we strongly recommend against taking on debt to make your travel dreams come true. Creating a travel budget is the first step to turning your travel dream into reality – whether it is to take your family to the Gold Coast for two weeks over the school holidays or to explore the world for a year. And it’s not as difficult or cumbersome as it may sound.
Where would you like to travel next? How about Gold Coast in Australia?
Think about your last trip… What did you spend money on?
Well, I bet you paid for some form of transport to get you (and your family) there (and back) and to travel around at your destination. Even travelling in your vehicle isn’t free. Then, you likely paid for accommodation, groceries and dining. And you paid for activities – after all, you travelled to see and do some cool stuff. If you travelled overseas, you may have also paid for travel insurance, visas, to exchange money, sort out mobile data (these days, we’d usually set up an eSIM before we arrive) and the like.
Voilà … these are the five expense categories for your travel budget:
- Travel and ground transport
- Accommodation
- Food and Beverages
- Experiences
- Other items such as travel insurance.
Depending on where you want to go, what time of the year and for how long, where you stay and what you do while there, your budget will obviously differ. So, how do you know how much you might spend?
We like to do a bit of research before we book anything – just to get a feel for our likely spending in each of the above categories and each country.
So, let’s use the Gold Coast family holiday as an example (using our travel budget calculator):
Example: Travel budget for Gold Coast holiday (Family of 4)
If you don’t have the time for a bit of upfront research, several websites out there provide data on the cost of travel per country:
- Numbeo provides the price of specific items.
- Lonely Planet and Budget Your Trip provide daily averages based on your travel preferences – from budget to luxury.
If you plan to travel to countries we’ve been to, check out our travel cost articles.
2. Start saving for your trip
Depending on how much you earn, seeing how much your next trip will cost on paper might come as a shock or be welcomed. If you belong to the former group, don’t give up on your travel dream just yet. There are many ways to bring that number down to something more palatable (more on that shortly).
Even if you cut your (travel) costs, you won’t be able to travel for free (unless someone sponsors you). So, start saving… NOW!
Knowing your travel budget helps you set your savings goal. You can then work out how much you need to save (daily/weekly/monthly) to afford your next family holiday or to explore the world, without becoming enslaved to a financial institution. And our 40 ways to cut your day-to-day spending may help you achieve your savings goal faster.
Start putting money aside for your trip - the earlier the better
Let’s stay with the Gold Coast holiday example and assume you want to take this trip with your family in six months’ time.
Both you and your partner earn a decent income. You have a small amount of savings, but you prefer not to touch it. You have estimated roughly how much this trip will cost you (in this example, just under NZD 11,000). You have six months to save up for it. Your savings goal is therefore NZD 60 per day.
Sounds achievable? Good. Set up a regular automatic transfer into a separate savings account, and your travel budget will accumulate in the background.
If the amount you need to save is more than (you think) you can afford, and you need more time to save up, start saving anyway (whichever amount you can afford). Then look for ways to
- cut your day-to-day expenses
- earn some extra money (by doing a garage sale, taking on a few extra shifts – the possibilities are endless); and/or
- make your travel plans more affordable (more on that below).
Delaying your travel plans could be another option, but you’ll be surprised how much you can save if you really put your mind to making your travel dream come true.
3. Book smart and shop around
So, how can you make your travel plans more affordable? Let’s go through the different expense categories in your travel budget and see where you can save money.
How to save money on transportation
Transport is one of the easiest costs to control if you stay flexible. Over years of long-term travel, we've found that small decisions - when you travel, how you book, and which tools you use - matter more than the destination itself. If possible, avoid peak seasons and fixed dates. We regularly use Google Flights and Skyscanner to scan entire months and identify cheaper days to fly.
For ground transport, we start with Busbud to compare routes and prices - it's often the quickest way to understand what's actually available. In Asia and beyond, 12Go is useful for combining bus, train, and ferry travel with transfers in one place. For European train travel, Rail Europe can help, although coverage varies by country. If ferries are involved, both Direct Ferries and Ferryhopper are worth checking, as routes and prices can differ.
If we don't know how to get from A to B, we use Rome2Rio to map out options across different modes of transport, then cross-check prices directly. For rental cars, we compare options using Booking.com, which consistently surfaces a wide range of suppliers in one place.
Our approach is simple: compare first, then book the option that fits the route, timing, and overall trip cost - not just the cheapest ticket. This is how we keep our average travel costs low over time while staying flexible.
Air Travel
Ideally, research in your browser's incognito mode, as cookies can signal to booking sites how interested you are in a particular trip, which may affect the price quoted. That applies to all online travel agents (OTAS), not just airlines. If you find a good deal, book it there and then, as prices change constantly:
- The best fares usually go first, so planning is essential for air transportation.
- The same applies to air points or miles, as only a limited number of seats are available on each flight.
If you plan to travel across multiple continents, you may want to compare passes that bundle multiple destinations, such as round-the-world (RTW) fares offered by OneWorld or Star Alliance members. If you travel during peak season, these multi-destination packages may be a better deal than booking each leg individually. You can do overland sections on RTW tickets, too, which means you could supplement your RTW ticket with bus and train rides or cheap flights between destinations.
Vehicle Rental (including Relocations)
Unless your trip takes you across oceans, another way to save on transportation is to look for vehicle or motorhome relocations. Websites in many countries offer massively discounted one-way rates (often including fuel and/or insurance) to those driving a vehicle or motorhome from A to B within a specific period. These deals are relatively last-minute, and A and B are usually more significant transport hubs. However, if that's an option, consider searching for vehicle or motorhome relocation services at your destination.
Speaking of vehicles, if you plan to hire a car at your destination, it's also a good idea to shop around. We often use aggregator websites that let us search across multiple car rental companies at once.
Hitchhiking
A final option to save on transport costs is… to hitch a ride. While Paul and I did it safely in Dominica on a public holiday (when there was no other option) and have taken plenty of people along in our campervan in New Zealand, there are many countries where we wouldn't feel safe hitchhiking. Judge for yourself where and when you can and can't do it.
You don't need to resort to hitchhiking to save money on transportation | Photo by Dmitry Shulga on Unsplash
Just by choosing (slightly) different travel dates you can save heaps
How to save money on accommodation
As with any other travel expense, it's worth shopping around to find the best deal. We look across several booking platforms to find the best value-for-money option. Nightly rates are generally cheaper outside of peak season. If you can only travel during peak season, consider accommodation options that are a little further away from the main tourist attractions but offer good public transport connections.
Wherever you book, read the fine print to compare apples with apples. For example, your stay may incur extra charges (like local tourist taxes or cleaning fees). Some booking platforms include them, while in other cases, you may have to pay your host for them upon arrival.
When we visited Rio De Janeiro for the Carnival in 2012, we found accommodation prices to be four times more expensive than during other times of the year. Now, experiencing the Carnival in Rio was on our bucket list (so we were prepared to pay a bit more), and we did end up finding accommodation that was affordable (by giving up on comfort).
If you seek unique experiences that only happen during certain times of the year (for example the Oktoberfest in Munich or the Carnival in Rio) book early.
If you don’t have to be somewhere at a specific time of the year, book your trip when not every man and his dog visit your destination. The advantage is not only cheaper accommodation but also a more intimate experience as you’ll be sharing your destination with fewer tourists.
Our Oktoberfest experience. We stayed with friends so were able to reduce some costs
Finally, relocating a motorhome would also reduce your accommodation costs. You may not be able to freedom camp on your route but paying for a campsite usually costs (significantly) less than staying in a hotel or motel room. And in those countries that offer motorhome relocations, the campsite facilities are usually pretty good.
How to save money on dining and groceries
One of the reasons we travel is to experience the local cuisine, but dining out all the time can quickly get expensive. We therefore always try to book accommodation with access to a kitchen - either a private kitchenette or our host's kitchen. That way, we can store food in the fridge and make meals. Paul and I eat out only once a day (sometimes only once a week), usually at lunchtime. This allows us to sample local dishes while taking advantage of great lunch deals. It also means we don't have to roam around unknown parts of town every night in search of a restaurant.
Portion sizes in many parts of the world are usually substantial, so we frequently share a three-course meal. The same applies if you go out for dinner: Order a starter or salad and a main, and that's usually enough for two people. An added benefit is that there is less food waste.
Every country has both more expensive and less expensive supermarkets for groceries. Ask your host about the more affordable options (for example, Aldi or Lidl in many European countries) and try to avoid convenience stores as much as possible.
Local markets are great for buying fresh and inexpensive produce
Cooking at your accommodation gives you some home comforts (especially if you live on the road as we do) and your stomach a break from the local cuisine (there is only so much rice and beans one can eat in a lifetime). And if you are staying at shared accommodation, cooking at home could introduce you to new friends – your hosts and fellow travellers.
In our Gold Coast holiday example, we assumed the family would eat breakfast at home. That could be an option if you want to save money but don’t want to cook while on holiday. Given breakfast prices in a Gold Coast café are (almost) the same as lunch prices, having breakfast at home saves this family NZD15 per person per day (or NZD840 over two weeks).
Swapping or trading your assets/skills/time
While not suitable for everyone (and every trip), there are options to make your travel dreams come true by thinking creatively. Swapping or trading something you have (your home, skills, time) for something you need (food and shelter) means you don’t even have to pay (money) for (parts of) your travels.
You could swap your home (and potentially car) with someone who would like to visit your hometown at the time you are visiting theirs. Home Exchange enable you to find a suitable place and connect you with potential swap partners.
Other options that don’t cost you a cent for accommodation (beyond a small annual fee) include couchsurfing and house sitting.
House sitting means staying in someone’s home while they’re away, usually in exchange for caring for pets and keeping the home tidy. It’s not passive—you’re taking on responsibility—but if you’re flexible with your dates, it can remove one of the highest costs of travel entirely.
See how house sitting works and when it makes sense.
These are the options we’ve relied on most to reduce accommodation costs over long-term travel. We use and recommend the following platforms:
How to save money on experiences
Look for free and low-cost experiences
Many activities (and some of our most treasured experiences) have been free or cost little. On our journeys, we have
- Visited many museums free of charge (including the Colosseum and Forum in Rome, which are free on the first Sunday of the month);
- Attended free guided walking tours around the world (you tip at the end based on your budget and how much you liked the tour);
- Did countless self-guided walks and used public transport to get to know a city;
- Hiked in the Andes in Ecuador and climbed volcanoes in the Caribbean;
- Swam and snorkelled at countless beaches, using tree shade rather than paying for parasols and
- Attended free street performances and danced with locals in Argentina, Cuba and the Dominican Republic.
Search for free activities at your destination; chances are someone has already made a nice list.
Be selective about paid experiences
Paying for activities and attractions can add up quickly. Therefore, look out for special offers and discount coupons. If you travel in a group, you can also book a private tour and share the cost. And finally, shop around - here are some of the OTAs we use and can recommend:
If a few hours of work a day are not an issue for you, you could offer your skills more broadly – whether it be in hospitality, in an office job, by practising English with your hosts or helping out on a farm – in exchange for meals and a roof over your head. Check out websites such as HelpX, Workaway or WWOOF.
The added benefit: You live among locals and get to experience real life at your destination. Just make sure your visa allows you to work in the country you are visiting. The last thing you’d want is to be thrown out of the country for a visa violation and (potentially) banned for life.
What about your other travel costs?
We’ve already shared our top travel money tips – so check them out if you haven’t. We’ve also written a clear, plain-English guide to finding travel insurance that actually suits your needs — what to check, what to ignore, and where people commonly get caught out.
Make sure you check the entry requirements for your destination to avoid costly surprises (or worse: being made to return home). Paul wasn’t aware that he required a visa when we visited Trinidad and Tobago earlier this year. He ended up being penalised with TTD 400 (about USD 65 at the time). Ouch.
Make sure you check the entry requirements for your destination to avoid costly surprises
4. Pay for your trip (without getting into debt)
Even if you’ve saved some bucks by shopping around and booking smart, you still have to pay some money.
Smart use of credit and savings
As mentioned above, we do not encourage you to get into (or increase) your debt to afford your trip. What we mean by smart credit is using the advantages of credit cards (interest-free periods, the ability to dispute transactions, rewards, and travel insurance) without being penalised by their disadvantages (particularly exorbitantly high interest payments).
Our credit card statements are issued at the end of the month. So if we can, we time bookings to occur just after the last statement has been issued so that we maximise the interest-free period. We apply this approach to any bigger purchase. The money we don’t pay straight up earns us interest in the meantime. It may not be much, but it all adds up in the long term. Once we have the statements, we pay them in full. Every. Single. Month.
Let’s look at the Gold Coast family holiday again: you have created your travel budget and set up an automatic transfer to a separate savings account, saving NZD 60 a day. Now, just after your next credit card statement has been issued, you book your flights. By the time your credit card statement has to be paid, your travel savings have grown enough to cover your flights (Cost of flights: NZD1,800; savings after 30 days: NZD1,800). Easy, right? If the process is repeated two months later for accommodation, and finally for activities, your family will be able to pay for the trip without further debt.
Finally – Keep an eye on your (actual) spend
You have determined your travel budget and achieved your savings goal. Well done!!! Now you only need to stay within your budget, and Bob’s your uncle. Learn how to track your spending.
Travel Money Tips
Securing your currency needs overseas can be expensive, but it doesn't have to be. We've saved a significant amount of money over the years simply by knowing what (not) to do. Here are our key tips:
- How not to get caught out by bad FX rates and exorbitant commissions;
- How to exchange cash on your overseas trip;
- Which debit/credit card is best for your overseas trip; and
- How do you avoid unnecessary fees when withdrawing cash?
If you need to transfer money to pay for your travels upfront, we recommend Wise and XE Money Transfer (we use them interchangeably, depending on which one offers the better FX rate and lower commission).
Interested in further readings? Here are some links we have come across during our research:
How have you made your travel dreams come true?
These are what we did, and everyone is different. Can you share any other tips you have for saving for your dream trip?
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