Finance - Cycling The World On A Budget
To finance a long term trip necessiates setting a budget. The
earlier you can consider it the better. You have to be comfortable that
you can achieve your dream without leaving you destitute in your old
Anyone who has had to manage a company, run a household or manage on
a student loan would agree that successful budgeting is not difficult
and yet so many people seem to have a problem with it, struggling to
make ends meet or ending up to their eyes in debt.
In our case we started to consider it well over two years ago. In
fact it wasn’t until we read Tim and Cindy Travis’ book “The Road that
Has No End” that we realised it was indeed possible to travel the World
with very little money. Before 2002 when Tim and Cindy were planning
their trip they set themselves an amount of just $21 per day for the
two of them – and they managed to stick to it. I know their daily
budget is a little more now.
We asked ourselves “Could we survive on that much?” “How much money
did we have available anyway?” “Would we have enough left at the end?”
“How long could we continue for and indeed, would we want to continue?”
We didn’t know the answers to any of these questions. So we made a
start by simply working out our pension provisions, savings, house
values, etc; in other words, our total net worth. I.e. the amount of
money we would have if we had to sell everything.
We also researched the cost of living in different locations and
realised that it is possible to live on a much lower income in areas
outside of the UK, Europe or the US.
Should we sell the house or rent it out? We decided that we didn’t
want the possible worry of renting out the house whilst we were half
way around the World and we didn’t want to pay a manager to do it for
us. Was selling a possibility?
We looked at how much pension provision we already had accumulated
and if we stopped paying into our pension funds how much would we get
at normal retirement age of 65. We have been fortunate in that we have
put money into our pension since our very first jobs and although there
were a few pension holes in the middle of our careers we have a
reasonable provision already, but will it be enough?
All of these and many other considerations figured in our
deliberations. While many of you may think that we are taking big risks
we still like a degree of security.
Neither of us are the type that jumps off a cliff on a piece of
elastic, without first doing our research. Our psychometric profile
show us as deliberating too long in making decisions. So we are