Travel Globally On A Budget: Tips For Frugal Exploration

Travelling the world is a dream for many, but often the cost is a barrier. However, it is possible to see the world on a budget. From volunteering to credit card points, there are many ways to save money while travelling. Here are some tips to get you started:

- Pick the right destination: Research the average costs of transport, accommodation, food and other expenses in your chosen location. Some countries are much cheaper than others, so consider travelling to Southeast Asia or Latin America to save money.

- Book smart: Use incognito mode when searching for flights and be flexible with your travel dates to find the best deals. It's also worth checking if there are any nearby cities or countries with cheaper flights.

- Cook your own meals: Opt to cook in your accommodation or buy food from local markets and supermarkets to save money on dining out.

- Stay in hostels: Hostels are a budget-friendly option, often offering free Wi-Fi and sometimes free breakfast.

- Take advantage of free events: Immerse yourself in the local culture by taking part in free walking or bike tours, visiting free museums and checking out street markets.

- Volunteer: Websites like Worldpackers offer volunteer opportunities in exchange for free accommodation and meals.

- Get a job overseas: Consider working as an au pair, bartender, hostel worker, waiter, or tour guide to fund your travels.

- Use credit cards: Earn airline miles and avoid foreign transaction fees by using the right credit cards.

Take advantage of credit cards

Credit cards are a great way to travel the world for less. Here are some tips on how to take advantage of credit cards:

• Look for sign-up bonuses: Sign-up bonuses are a great way to earn a large chunk of points by spending a certain amount of money on the card. For example, the Chase Sapphire Preferred card offers 50,000 points if you spend $4,000 in the first three months. That's a lot of points that can be redeemed for travel!
• Pay your card in full every month: It's important to stay on top of your credit card payments and make sure you pay off your balance in full each month. This will help you avoid paying interest, which can negate the benefits of earning points.
• Meet the minimum spend: Many travel credit cards have a minimum spending requirement to earn the signup bonus. For example, the Chase Sapphire Preferred card offers 50,000 points if you spend $4,000 in the first three months.
• Watch out for fees: Be mindful of any fees associated with using your credit card. Some cards may charge a fee for certain types of purchases, such as mortgage payments or retailer surcharges.
• Stay organized: Keep track of your spending, due dates, and minimum spend requirements to maximize the benefits of your travel credit card.
• Consider annual fees: While some travel credit cards have no annual fee, others may charge a fee. Weigh the benefits of the card against the cost of the annual fee to determine if it's worth it for you.
• Choose the right card for your needs: There are many different types of travel credit cards available, so it's important to choose one that fits your travel preferences and spending habits. Consider factors such as rewards programs, sign-up bonuses, annual fees, and foreign transaction fees when selecting a card.
• Understand your credit score: Maintaining a good credit score is important when applying for travel credit cards. Check your credit score regularly and take steps to improve it if needed.
• Maximize your rewards: Use your travel credit card for everyday purchases to maximize your rewards. Look for cards that offer bonus rewards in categories such as dining, groceries, or travel.
• Compare different cards: Compare the features, benefits, and rewards of different travel credit cards to find the one that best suits your needs. Consider factors such as annual fees, rewards programs, sign-up bonuses, and foreign transaction fees when making your decision.

Get one big plane ticket

If you're looking to travel the world for less, one option is to get one big plane ticket, also known as a Round-the-World (RTW) ticket. This allows you to visit multiple destinations on a single ticket, often with the flexibility to change dates and destinations. Here are some things to consider if you're thinking of getting an RTW ticket:

Pros of RTW Tickets:

RTW tickets can save you money, especially if you're visiting multiple destinations. Buying one big ticket can be cheaper than booking multiple individual flights.

RTW tickets offer convenience and peace of mind. You won't have to worry about booking flights as you go, and you'll have a set itinerary planned out.

RTW tickets often come with perks like free rebooking and the ability to earn miles or points that can be redeemed for future travel.

Cons of RTW Tickets:

RTW tickets can be expensive, with prices ranging from $2,500 to $15,000 or more, depending on factors like mileage, class of service, and number of stops.

RTW tickets usually have restrictions and rules that must be followed, such as starting and ending in the same country, travelling in one direction, and crossing specific oceans.

RTW tickets may not offer as much flexibility as booking individual flights. Changing destinations or making last-minute route changes can incur fees.

Things to Consider when Buying an RTW Ticket:

• Plan in advance: RTW tickets are usually cheaper when booked 4-6 months in advance.
• Compare prices and routes: Use online tools and search engines to compare prices and routes offered by different airlines and alliances.
• Be flexible: Consider travelling during off-peak seasons and be open to adjusting your travel dates and destinations to find the best deals.
• Limit the number of destinations: RTW tickets are usually priced based on mileage or the number of stops, so limiting your destinations can save you money.
• Use hub-cities: Flying into hub-cities and using ground transportation to nearby destinations can be cheaper than flying directly to smaller cities.
• Consider a third-party provider: Companies like AirTreks can help you find affordable RTW tickets by combining flights from different airlines and alliances.

Remember to read the fine print and understand the terms and conditions before purchasing an RTW ticket. By planning ahead and being flexible, you can find great deals on RTW tickets and save money on your travels.

Cook your own meals

Cooking your own meals is one of the best ways to save money while travelling. Here are some tips to help you save money by cooking your own meals:

Plan and Shop Accordingly

Before your trip, plan your meals and create a grocery list. Shop at local markets and grocery stores to buy fresh produce and other ingredients. If you are travelling by road, stock up on food before you leave. If you are flying, visit the nearest grocery store when you arrive at your destination.

Stay in Accommodations with Kitchen Access

Look for accommodations that offer kitchen access, such as hostels, Airbnb, or hotels with mini-kitchens. Having access to a kitchen will allow you to prepare your own meals and save money on eating out.

Pack Your Own Snacks and Water

Bring your own snacks, such as granola bars, dried fruit, or mixed nuts. Packing your own water bottle and refilling it is also a great way to save money and reduce plastic waste.

Avoid Eating Out at Tourist Traps

Restaurants and shops in touristy areas tend to be more expensive. Opt for local markets, street food, or small restaurants outside the city centre for more affordable and authentic dining options.

Take Advantage of Free Food

Look for accommodations that offer free breakfast or snacks. Some hostels also organize food-related events, such as cookouts or pub crawls, for a small fee. You can also take advantage of free food samples at local markets and bakeries.

Cook in Bulk and Pack Leftovers

Cook in bulk and pack leftovers for the next day. This will save you time and money, as you won't have to cook or buy food for every meal.

Be Creative and Adapt

You don't need to cook every meal. Be creative and adapt to your surroundings. For example, make sandwiches or salads that don't require cooking. If you don't have access to a kitchen, look for accommodations with free breakfast or snacks to reduce the number of meals you need to prepare.

Barter and Ask for Local Recommendations

In many parts of the world, bartering is common and expected. Don't be afraid to politely barter for a lower price, especially when buying multiple items. Ask locals for recommendations on affordable dining options. Staff at your hotel or hostel, taxi drivers, or baristas may have great suggestions for cheap and delicious food.

By following these tips, you can significantly reduce your food expenses while travelling and have a more authentic and enjoyable culinary experience.

Stay in hostels or peer-to-peer rentals

Staying in Hostels or Peer-to-Peer Rentals

Hostels and peer-to-peer rentals are great options for those looking to travel on a budget. They offer privacy, comfort, and a unique, homely experience, often at a lower price than hotels.

Peer-to-peer renting is when a private individual rents out their entire house, a room, or even a spot on their property to pitch a tent. It is a way for the host to make money and for travellers to find a place to stay that is usually cheaper and more private than a hotel. Airbnb is a well-known example of a peer-to-peer renting site.

Hostels

Hostels are a budget-friendly type of accommodation that focuses on a shared social experience. They are popular among solo travellers, backpackers, and students, but they are for everyone. Hostels feature dorm-like spaces for sleeping, with each visitor provided a bed and a space to store their personal items. The rest of the space is shared, including bathrooms, showers, kitchen areas, and common areas.

Hostels typically have lower prices than hotels, ranging from $10/night to $60/night, depending on location, room size, and local competition.

Pros and Cons of Hostels

Pros

• Prime locations
• Group accommodation
• Authenticity

Cons

• Lack of privacy
• Risk of theft

Choosing Your Hostel

You can either book your bed in a hostel beforehand or walk in and ask if there is space available. Booking ahead is usually the best option to ensure a comfortable stay, but walking in can be convenient for freestyle travellers and may allow you to negotiate a lower rate for an extended stay.

Types of Hostels

Hostels offer a range of accommodation options, including:

• Dorms with bunk beds
• Private rooms
• Female-only dorms
• Pod-style dorms
• Family rooms
• Apartment-style rooms
• Suite-style hostels

Hostel Amenities

Hostels usually provide:

• Lockers for storing items
• Shared common areas, bathrooms, and showers
• Washing machines
• Locally sourced breakfast/dinner
• Organized social events

Packing for a Hostel

When packing for a hostel stay, consider bringing:

• A lock
• Earplugs or headphones
• An eye mask
• A long extension cord
• An adapter
• Toiletries
• Shower shoes
• A towel

Safety Tips for Hostels

• Read customer reviews before booking
• Find a hostel in a central location
• Choose a room with fewer beds
• Keep valuables in your pillowcase or locker
• Take your items with you during the day
• Walk away if it doesn't feel right

Get travel insurance

Travel insurance is an important part of planning your trip. While it can seem like an unnecessary expense, it is a crucial safeguard in case of emergencies. A good travel insurance plan will cover emergency medical care, lost luggage, delayed flights, damaged valuables, and more.

• Don't always choose the lowest price cover: While it may be tempting to go for the cheapest option, it's important to carefully research the policy to ensure it provides adequate coverage. Saving a few dollars now may cost you a lot more in the long run if you're not properly insured.
• Understand your travel insurance: Read the policy carefully to know exactly what is and isn't covered. For example, your electronics may not be covered if they're damaged in checked luggage, or your bags may not be covered if they're stolen out of your sight. Understanding your coverage will help you avoid unpleasant surprises when filing a claim.
• Choose the right policy for your needs: Consider factors such as your destination, the length of your journey, who you're travelling with, the value of your items, and any activities you plan to do. These factors will impact the price and coverage of your insurance.
• Look for promotions and discounts: Travel insurance providers often run promotions that can save you money. Additionally, some providers offer discounts for annual policies, family or group policies, and loyal customers.
• Compare quotes: Don't just settle for the first option you find. Compare quotes from multiple insurers to find the best value for your money. Websites like comparetravelinsurance.co.nz allow you to easily compare policies and prices from different providers.
• Consider your excess: You can often lower your premium by opting for a higher excess, which is the amount you'll pay when making a claim. However, be sure you can afford the excess in case you need to make a claim.
• Think about your travel habits: If you travel frequently, an annual multi-trip policy could be more cost-effective than purchasing insurance for each individual trip.
• Combine policies with a travel companion: If you're travelling with a partner, friend, or family member, consider getting a joint policy. This can often be cheaper than purchasing separate cover.
• Look into group discounts: If you're travelling in a large group, some insurers may offer group discounts.
• Utilize loyalty programs: If you're already a member of a particular insurance provider, they may offer loyalty discounts. Additionally, check with your employer to see if they have any group deals with insurance companies.
• Consider your destination: The cost of insurance can vary depending on your destination. Some insurers will ask you to nominate the region you'll be spending the most time in, while others will ask for the furthest region you'll be visiting. Nominating the correct region can help you find the most affordable cover. Additionally, consider the cost of medical care in your destination. For example, if you're travelling to the USA or Europe, where medical care is expensive, you may want to opt for insurance with unlimited medical coverage.
• Read the fine print: Reading the Product Disclosure Statement (PDS) may not be the most exciting task, but it's crucial to understanding the cover limitations. Don't hesitate to contact the insurer directly if you have any questions or concerns.

Frequently asked questions