Cost to Travel the World for One Year

“How Much Does it Cost to Travel the World for One Year?”

This is a question I found myself typing into the Google searchbar multiple times a day when I had decided to take the leap to become nomadic. It was 2017, and I was preparing to quit my job to travel indefinitely. Everything was set in my mind, except the fact I had no idea what it would cost to travel for a year.

I wasn’t sure if I could find a way to make money as I traveled, so I wanted to save enough money to travel for at least two years. I wanted to wait until I’d saved enough money before quitting my job. But, how much was enough exactly?

Fast-forward to now, I have been traveling the world nonstop for over 2 years, and can now report on the true cost to travel for a year. Below, I will break down my yearly spendings to answer the question “How much does it cost to travel the world for one year?”.

What Type of Traveler Are You?

Some factors that go into your cost to travel the world for one year, depends on the type of person you are, where you plan to go, what standard of living you’ll need to maintain to be happy (can you really couchsurf for a whole year?), and which activities you enjoy.

Back in 2017, when I searched for the definite estimate of the “cost to travel the world for one year?”, I got a huge variation of answers.

One blog I remember, said it costs as low as $9000 a year for a RTW (around the world) trip.

Other resources, such as the book “How to Travel the World on $50 a Day” by Matt Kepnes, told me that a yearly budget of around $18,000 was more practical.

Then, there were websites that said you should prepare to spend thousands of dollars each month. So which answer was accurate? Why are all the answers so different?

The answer lies in differences in travel styles. If you are a budget backpacker, your travel style will be motivated by your budget and spending as little as possible will be your goal. For someone who is wanting to tick off lots of boxes on their bucketlist, they will be less concerned with saving money and want to do and see as much as possible, which will probably cost more.

I don’t doubt that there are travelers flying around the globe, having an amazing time on $9000 a year. But knowing what I know now, I know that’s not the type of traveler I am (and that’s ok).

What’s Your Travel Style?

Be honest with yourself, evaluate your values, and what you want from your trip. Do you see yourself eating at restaurants frequently? Are you the type to want to go to all the “must see” attractions? Do you like sleeping in nice hotels? Do you like to party?

Or, are you ok with sleeping in hostels? Are you outgoing and comfortable enough to sleep at a strangers house you saw on the Couchsurfing app? Are you less interested in seeing stuff, and more interested in human connection?

Everyone’s motivation and reason to travel is different, and identifying what yours is will help you estimate your yearly travel budget.

The True Cost to Travel the World for One Year

Alright now the fun part! Here, I will disclose what it cost me to travel for a year.

Since I’ve been at it for over two years, I’ll include the budget breakdown for both years, since there’s a pretty big difference in both the budget and my travel style.

You can use the information to see which travel style resonates with you, and decide which budget matches the trip you want to have.

Okay, let’s get into it!

The First Year: The Digital Nomad Budget

My first year of travel I spent $33,746

Average monthly spending = $2812.17

*I did not count some shopping splurges, that were unrelated to travel and more due to my consuming problems

**I did include the cost of having to buy new tech gear, including a brand new laptop and failed repairing costs

***I was hit by a truck while on a motorbike and sustained some medical costs due to that which are included

Depending on who is reading this, that number may be shockingly high or seem very low. To any Americans reading this, when comparing this to the standard cost of living back home, this may seem really cheap.

Who is this Budget For?

My first year’s budget applies to you if you are a digital nomad or have saved up a bunch of money, and want to take a year off to travel and tick off lots of boxes on that bucketlist. In that year, I traveled very comfortably, said yes to almost all experiences that came my way, and paid for lots of activities. I also work while on the road, so I never felt the need to control my spending.

For experienced backpackers, this is probably where you write me off as a psycho and stop reading, but wait! This was my first year of long term travel, and I was in YOLO mentality. I didn’t know how long I’d be on the road, so I wanted to live every moment to its fullest without counting my dollars. My second year went differently and I made significant changes to my spending without trying.

The Second Year: The Backpackers Budget

My second year I spent $16,939

Average monthly Spending = $1411.58

*i did not count the cost of my new camera and lenses

**I did not count my $3000 repatriation flight to fly back to the USA from South Africa during the COVID-19 lockdown

My second year of travel, I learned that less is more. I slashed my spending in half, without trying. It just happened, because the things I valued and liked to do changed.

Who is this Budget For?

This budget is closer to a normal backpackers budget, although I admit my travel style is nowhere near “budget” or “backpacking”. Despite the lack of effort, I was able to keep my spending pretty low. So if you are budget oriented, it will be very easy to spend within this budget, or even less.

Why the Difference in Spending Each Year?

As you can see, there is a huge difference between what I spent in my first and second year. During both years, I split my time similarly between cheap and expensive countries. In fact during the second year, I spent one month in Iceland, a notoriously expensive country. I traveled to four continents both years, and spent about three months of each year not paying for accommodation by staying in friends’ homes.

Both years were equally fulfilling, and both years I was able to have new amazing experiences from start to finish, even on two completely different budgets.

What I Did Differently Each Year

This took research, and after breaking down my spending habits over the last two years, these were the differences I saw and what behaviors you can expect to drive up your own budget, or where you can save:

1. I Partied More the First Year

The biggest change came with what I liked to do. Year one I went to lots of parties and music festivals. I spent $6000 in a month in Mykonos by partying night and day and paying $25 per drink, which racked up to dozens each day. We all know booze costs money, but it’s also the indirect costs that add up too.

When I was in party mode, I was in spending mode. In one weekend of debauchery, I could easily double my monthly spendings in taxis, alcohol and any other bad decision along the way.

Summary:

If you plan to party a lot during your trip, expect a higher budget. If you can cut it out of your travel plans you will save thousands of dollars. Not partying is the main reason I spent less in the second year of travel.

2. I Changed Countries More in the First Year

My first year of travel I went to 19 countries total. Not only that, but within each country, I rarely stayed in one city longer than a week, before taking a weekend trip elsewhere, or relocating altogether. 

In the second year, I visited 14 countries, which still meant I visited more than 1 country a month, but by reducing how many long haul flights I took, I saved a lot.

Based on my experience, I didn’t have less fun or experience less by moving around less. I actually found a place I loved, South Africa, and got to spend more time there, and experience more of it than if I had only spent one month there. 

Summary:

If you are the type to count countries and want to collect as many stamps in your passport as possible, you will spend more. If you are easy-going and just want to see where this journey takes you, odds are you’ll be like me and find a country you love, and want to slow down. By spending more time in one place sometimes (or all the time), you’ll spend less but experience just as much. By moving less I spent $4000 less in the second year.

3. I Did More Paid Activities the First Year

In my first year of traveling, I got PADI certified. Since then, I’ve done numerous diving trips, mostly within that year. Diving is not a cheap hobby, but one I love. In year two I didn’t intend to dive less, it just so happened that the destinations I chose didn’t offer that type of experience.

Some travelers feel that they can’t miss out on certain activities that they can only experience in certain destinations. Safaris, for example, are notoriously expensive, which makes Kenya an expensive destination. However, if you cut this type of activity out completely, Kenya is a very cheap country.

Some travelers are willing to skip these activities and by doing so, spend much less. I meet plenty of travelers who are happy doing only free activities such as spending time at the beach, going hiking, or meeting up with locals and other travelers. These types of experiences are free so they will spend less.

Summary:

Certain once-in-a-lifetime experiences cost a lot. Reflect on what you want to do on your trip and decide how big of a budget you need for activities. If you plan to do adventure sports, go on a safari, or take diving trips, plan for a bigger budget. For example, I usually budget at least an extra $500 for big paid activities each month.

4. I Ate Out Less the Second Year

If you know how to cook, you will save money. This rule doesn’t count in Southeast Asia or East Africa where eating out is as low as $1 per meal. However in Western Europe, Japan and North America, this will make a huge difference.

Some months in South Africa, I only bought groceries in efforts to be healthier. Those months my food budget never exceeded $250.

In some months where I ate out almost everyday, my food budget was up to $800 a month. In Japan, my sushi problem could rack up a $1000 monthly food budget (oops).

I think the best travel experience lies in the middle. Eat out a few times a week to try local cuisine, but try to cook often for your health and budget. If you are in a cheap destination, feel free to eat out for every meal.

Summary:

If you cook or eat local food in cheap countries, you can spend $250 or less on food a month. If you want to eat out moderately, add $150 to that. If you plan to eat out a lot add $300 – $400 to that.

5. I Had More Accidents in the First Year

This isn’t something I could have controlled, but it sure did make a difference in my budget. I had my laptop (aka my money making machine) crash on me one day. In a desperate attempt to repair it on an island with no Apple stores, I ended up paying for several costly repairs, none of which actually worked. I bought another laptop, which I hated, so I eventually had to buy a new Macbook when I got to Singapore. That was an unexpected month that cost me thousands in extra expenses.

I also got into an accident where a truck sideswiped my motorbike. I had some minor leg injuries, but still needed medical attention which was an additional expense.

These expenses could have been reimbursed if I had renewed my travel insurance on time. I had travel insurance, but it expired the month of ALL these accidents. Lesson learned, you must always have travel insurance.

Summary:

You should plan to get travel insurance no matter what your budget is. I recommend World Nomads Travel Insurance because they are reliable, and you can purchase from them while already traveling, and renew it at any time. Their plan is easy to navigate and they are very helpful.

The Verdict:

So, with this information, plus identifying what type of traveler you are, you can get a rough idea how much it will cost you to travel the world for one year.

Below are some suggested budgeting templates, and what you can expect from your trip at each budget level.

You can travel comfortably on a budget as low as $1500/ a month ($18,000 per year).

In this budget, you can expect to have a trip that includes:

• Staying in hostels for short stays (I don’t use hostels)
• Using Airbnb for longer stays
• Couchsurfing 25% of the time and/or in expensive countries
• Spending more time in each country
• Taking buses instead of flying whenever possible
• Taking 2 (or less) long haul flights a year
• Doing more hiking, beach days, or things in nature which are free
• Cooking in expensive countries, and limit eating out to 3 times a week
• Partying less or partying cheaply (A bottle of wine in Romania is as low as $2 and it’s free to drink it in the park with friends)
• Limiting paid activities to 2 per week (museums, tours, dives etc)
• Shopping only for necessities, or for clothes when changing climate zones
• Spending at least half of your trip (if not more) in cheap countries like Southeast Asia, East Africa, etc.
• Find travel buddies to split costs for some trips (car rental, airbnb, etc are good places to save if you have a partner)

Aim for a $2000 – $2500 monthly budget ($24,000 – $30,000 a year) if you plan to:

• Do more paid activities like safaris, tours, dive trips, museums or festivals
• Eat out up to 5 times a week
• Spend some time in cheaper countries
• Fly instead of using land transportation for regional travel
• Limit long haul flights to 3 – 4 times a year
• Stay with friends or hosts for free sometimes
• Party and go out a couple nights a week
• Stay in private Airbnbs mostly, not hostels

Aim for a $3000+ / month budget ($36,000+ a year) if you:

• Are between jobs and just plan to take a year off to travel, and will make money again once you go home
• Really want to do all paid activities available in each destination and don’t want to miss any such as safaris, skydiving, diving trips
• Love partying and plan to visit some party destinations
• Like music festivals
• Want to eat out everyday
• Drink frequently and love partying, and going to clubs and bars
• Plan to fly once a month or more
• Will change continents frequently, and have more than 4 long haul flights a year
• Will spend more than half your time in expensive countries
• Love shopping and buying gifts and souvenirs
• Don’t like hostels
• Can make money while traveling and don’t need to/care about budget so much

I hope this gives you an idea of what you can expect to spend in a year of traveling. I have been on both ends of the spectrum, from spending less than $1500 a month, to the traveler who spends twice as much.

Now you know what you can expect from a year of traveling on two different budgets and travel styles. If you can assess your needs and what you want from your trip, then you can use the information here to estimate the cost to travel the world for one year. Then, just save and budget accordingly and you’re good to go! 

What about you? Have you traveled for a year and had a completely different budget? Let me know!

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