How to Become a World Traveler Without Going Into Debt

How to Become a World Traveler Without Going Into Debt

DEBT SUCKS.

That was a bumper sticker that I had on my filing cabinet for years. Big red letters on a black background. It was a reminder to me that once I finally got out of debt, I didn’t ever want to go back. The advantage of changing my lifestyle from being a carrier of large amounts of consumer debt to being virtually debt free is that I can travel now. Of course, I could have traveled then, too, but after the trip was over, there would be guilt and stress and, let’s be honest, arguments with my husband over money. I thought I would share how to travel debt free. If you’re committed to making it happen, it’s not that hard.

How to Travel Debt Free *

How to travel debt-free

* NOTE: When I use the term debt in this post, I am not referring to home mortgages.

Step 1 – Be a Gazelle

Your first step is to make a commitment to yourself and anyone you share finances/travel with that you are not going to incur more debt. And by commitment, I mean an iron-clad, no going back, tattooed on your forehead level of commitment.

Financial guru and author Dave Ramsey says in his Financial Peace University course that you have to have gazelle-like intensity. That may seem strange, but Dave explains that if you’ve ever seen a video of wildlife in Africa, you may have seen a cheetah or other predator trying to take down a gazelle. That gazelle runs away from the cheetah as fast as he can – practically flying! – as if his life depends upon it. (Because it does!)

How to travel debt free - gazelle-like intensity

In order to travel debt free, you need to be just as intense in your desire to put your debt-incurring lifestyle behind you. Total commitment, 24/7, 365 days per year. Nothing less will do.

Step 2 – Start Saving

Now, it may seem silly to start saving while you’re still in debt, but it’s important. And the sooner you establish the habit of saving, the better. I have found that setting a percentage to save (5%, 10%, 15%, etc) usually works better for me than determining a specific amount. Do what works for you.

How to travel debt free - set aside money for an emergency fund, even while you're paying off debts.
Photo via Flickr by 401(K) 2012

Why save? Well, all it takes is one emergency to plunge you back into debt. The heater in your house needs to be replaced, your pet needs emergency surgery, you’re in a car accident and you have a $500 deductible for repairs. Whatever the emergency may be, you will be better equipped to handle it if you have an untouchable emergency fund already set up.

Step 3 – Work Towards Paying Off Existing Debt

Do you know what debt is most often compared to? Slavery. Andrew Jackson, Ralph Waldo Emerson, Ezra Pound, Ambrose Bierce, and many other notable people have said that being in debt is like being a slave. It is also in the Bible’s book of Proverbs.

How to Travel Debt-Free: First you need to make a commitment to paying off your existing debts.

The analogy is a legitimate one. Think about it: You are working, but you don’t get to keep anything that you earn. Instead, you are handing it all over to your creditors. You work and work but never seem to make any headway. You never get to enjoy the fruits of your labors.

Gazelle-like intensity is your path out of slavery to debt. Keep track of every dollar you earn. Pay your necessities, cut out everything that isn’t a necessity, and commit any leftover funds to paying off your existing debts.

Step 4 – Increase Your Income

This step isn’t a necessity unless you want to reach your goals a bit faster. You can increase your income by taking on a part time job to supplement your regular income, or you can do it by selling things that you already own.

How to travel debt free - sell your unwanted/unused items for extra money.
Photo via Flickr by r.nial.bradshaw

Whenever I need a little extra cash, I look for items taking up space in the house that might be more enjoyed and appreciated by someone else. I list items that aren’t high value or high demand on Facebook. Items that may sell better to a wider audience, I list on eBay. And if I’m looking to get rid of a lot of stuff in a short amount of time, I have a yard sale.

Regardless of how you choose to bring in extra money, this is the important part: do not use the cash to treat yourself to a meal out, new clothes, or whatever splurge item is your weakness. That money should go to either savings, or paying off debt, or both.

Remember, be a gazelle!

Step 5 – Once Your Debt is Gone, Set a Travel Budget

If you’ve followed the steps above, you are now debt-free. Congratulations! it’s a great feeling, isn’t it?

And, if you’ve followed the steps above, you also have some savings set aside. Don’t stop saving now! You will still want to have a healthy amount of money set aside for any big ticket emergencies that may pop up. But start a secondary savings for travel. It’s the whole reason you embarked on this journey, right?

Do your research and try to estimate what the following items will cost on your trip:

  • Transportation to and from your destination (air fare, train tickets, gasoline)
  • Transportation at your destination (rental car, gasoline, Uber/Lyft/taxi)
  • Lodging for each night you will be away (hotel, Airbnb, etc.)
  • Boarding for your pets, if applicable.
  • Meals & snacks/treats, alcohol if you like to party on vacation
  • Admission to museums, concerts, festivals, etc.
  • Special equipment – anything that you need to purchase in order to take the vacation, such as snow boots for Scandinavia or scuba gear for the Caribbean.
  • Souvenirs (if you always get a souvenir sweatshirt when you go on vacation, for instance).

Total it all up and that is how much you want to save before you go on your trip. If it seems unachievable, look at ways to reduce your costs (drive instead of fly, have a friend look after pets, shorten the length of your trip, etc.). If you find that it’s taking too long to come up with the total you need, revisit Step 4 above to speed up the process.

Then, when you’re on vacation, you will be able to enjoy it so much more knowing that it’s already paid for! Bon voyage!

 

How to travel debt free, regardless of your income and where you're going.
Summary
How to Travel Debt Free
Article Name
How to Travel Debt Free
Description
Tips on how to get out of debt and stay out of debt - even while traveling the world.
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Travel As Much
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