If you had to save $ 100,000, could you travel around the world for 5 years?

Updated on : January 17, 2022 by Darren Yates



If you had to save $ 100,000, could you travel around the world for 5 years?

It depends on where you want to travel and how you want to live, but yes, you could. Then 5 years later, you would have a lot of amazing memories and you would be $ 100,000 poorer. As someone else pointed out, that equates to being able to spend $ 20,000 a year. Personally, I would invest something. In my region, you can buy a $ 60,000 rental that will generate $ 6700- $ 7250 after paying for insurance, taxes, and a property management agency. Let's even call it $ 7,000. Next, it is assumed that you spend $ 20,000 a year and shows your beginning cash balance at the beginning of each year.

Year Plan A Plan B

1 $ 100,000 $ 40,000

2 $ 8

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It depends on where you want to travel and how you want to live, but yes, you could. Then 5 years later, you would have a lot of amazing memories and you would be $ 100,000 poorer. As someone else pointed out, that equates to being able to spend $ 20,000 a year. Personally, I would invest something. In my region, you can buy a $ 60,000 rental that will generate $ 6700- $ 7250 after paying for insurance, taxes, and a property management agency. Let's even call it $ 7,000. Next, it is assumed that you spend $ 20,000 a year and shows your beginning cash balance at the beginning of each year.

Year Plan A Plan B

1 $ 100,000 $ 40,000

2 $ 80,000 $ 27,000

3 $ 60,000 $ 14,000

4 $ 40,000 $ 1000

5 $ 20,000

So by doing so, you could enter your fourth year and still have a house at home that generates cash.

Do you decide that you will not return? Sell ​​the house. Let's say the market hasn't moved at all and you get your $ 60,000 back.

Year Plan A Plan C

1 $ 100,000 $ 40,000

2 $ 80,000 $ 27,000

3 $ 60,000 $ 14,000

4 $ 40,000 $ 1000

5 $ 20,000 $ 61,000

6 $ 0 $ 41,000

7 $ 0 $ 21,000

8 $ 0 $ 1,000

Now he's funded his eighth year with the same $ 100,000 that would only have lasted 5 if he hadn't put it to work.

Possibly? Does it depend if you are a conservative type traveler or do you prefer the road? That's $ 20,000 per year, that's almost $ 55 per day. Even the most conservative sometimes want to enjoy a few days or weeks living better than a Student with a Backpack and hitchhiking everywhere. But figure out your budget and you may be able to.

Most of those traveling on a regular budget will charge between $ 100 and $ 200 per day at the minimum. If you plan ahead, camp out sometimes, stay in hostels rather than hotels, and plan your transportation costs very carefully, you may be able to do so or cut the trip down to 4 years.

Ke

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Possibly? Does it depend if you are a conservative type traveler or do you prefer the road? That's $ 20,000 per year, that's almost $ 55 per day. Even the most conservative sometimes want to enjoy a few days or weeks living better than a Student with a Backpack and hitchhiking everywhere. But figure out your budget and you may be able to.

Most of those traveling on a regular budget will charge between $ 100 and $ 200 per day at the minimum. If you plan ahead, camp out sometimes, stay in hostels rather than hotels, and plan your transportation costs very carefully, you may be able to do so or cut the trip down to 4 years.

Keep in mind that for the next 5 years you are saving that inflation will probably make your 100k worth much less, maybe priced at 70k to 80k? But then a world tour can also take you to a lot of very inexpensive areas and you stay for a while, then you save a little more for the more expensive areas.

Who knows? I would save over 200k or more for that trip. Here's a site you can check out and there are many more online that you can research that have tips for traveling at various levels.

HoboTraveler Travel Community

Hope you can do this, enjoy!

Yes. Don't think of it as 20K per year.

You must try to earn money or earn food or accommodation. Even $ 100 here or there is useful. Just make sure it's legal

It may be worth the investment to make some big purchases. A motorcycle can take you around some countries for a long time. For a large country or region, it may even be beneficial to buy a cheap car that you can sell when you leave that area.

Always have an emergency fund that you can easily access in case you have to go home or pay for something unexpected.

Get travel insurance. Invest in your health. I know people who travel in Ind

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Yes. Don't think of it as 20K per year.

You must try to earn money or earn food or accommodation. Even $ 100 here or there is useful. Just make sure it's legal

It may be worth the investment to make some big purchases. A motorcycle can take you around some countries for a long time. For a large country or region, it may even be beneficial to buy a cheap car that you can sell when you leave that area.

Always have an emergency fund that you can easily access in case you have to go home or pay for something unexpected.

Get travel insurance. Invest in your health. I know people traveling in India who have contracted malaria and people who have died from it while traveling in West Africa. Get all the shots, take all the pills, don't eat food in the shade, follow good hygiene, use condoms, use DEET, etc. Medical care can be very expensive.

Be aware of fluctuations and currency exchange rates. Keep in mind that 100,000 today is not the same as five years ago. Also think about where you keep your money and how safe that bank / country is. Consider dividing your money across different banks. Familiarize yourself with when it is best to carry cash and when it is best to use a card.

Get a credit card with points. Use the points as much as possible to pay for free airline tickets and free hotels, etc. Make sure to use the card safely, but use it frequently.

Learn a new language, make lots of friends, keep in touch with people at home, write a journal / blog, and record lots of videos.

Have an explosion!

I know you say that you are not looking to travel in luxury, but on a limited budget. But you can do both. It is possible to travel in bulk and I know a lot of people who do and yet enjoy amazing VIP experiences.

I used to think that you had to sacrifice comfort for money, but I have also learned that this is not true. I learned how to do just that, travel alone on a wholesale budget while still getting the best possible experiences.

For that price, if you do it in bulk, I suppose you can travel the world and more. For 5 years? Possibly. But it is difficult to say. Your biggest expense will also be airfar

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I know you say that you are not looking to travel in luxury, but on a limited budget. But you can do both. It is possible to travel in bulk and I know a lot of people who do and yet enjoy amazing VIP experiences.

I used to think that you had to sacrifice comfort for money, but I have also learned that this is not true. I learned how to do just that, travel alone on a wholesale budget while still getting the best possible experiences.

For that price, if you do it in bulk, I suppose you can travel the world and more. For 5 years? Possibly. But it is difficult to say. Your biggest expense will also be the airfare, but if you learn to do it right, you may be able to do it.

  1. Flights - Travel using miles instead of cash and you'll likely save most of the cost on a long-haul trip. Also plan ahead if you get your purchase flight so that you buy the flight at promotional prices. Mileage accrual is another issue in itself that needs to be addressed separately. Miles are not best for short-haul trips, as the miles required for short-haul trips can be almost as much as long-haul ones. Check your frequent flyer chart and compare long haul vs. short haul redemptions to decide.
  2. Choose hostels and airbnb if you are going to use your bed only to sleep. The cost
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  1. Flights - Travel using miles instead of cash and you'll likely save most of the cost on a long-haul trip. Also plan ahead if you get your purchase flight so that you buy the flight at promotional prices. Mileage accrual is another issue in itself that needs to be addressed separately. Miles are not best for short-haul trips, as the miles required for short-haul trips can be almost as much as long-haul ones. Check your frequent flyer chart and compare long haul vs. short haul redemptions to decide.
  2. Choose hostels and airbnb if you are going to use your bed only to sleep. The cost of a bed in a hostel is 10-20 times cheaper than staying in a hotel in a similar location. (Exceptions apply, of course).
  3. Prepare your own meals in the kitchens of the hostels or in the airbnb kitchens, or buy your food at the grocery stall and especially in the supermarkets where the locals shop. By value, they are cheaper in weight and quantity and are about 3 times cheaper than the kebab stand, or even 10/20 times cheaper than eating in restaurants where you will not only have to pay for the food, the cook, the restaurant . things, but also extras like tips, service or additional overhead for groups. If it's a long day, pack your own picnic and sandwiches.
  4. Choose to stay in more central locations if accommodation costs exceed local transportation costs in the absence of transportation passes. The hike will save you not only money but time as well.
  5. If you are a student or senior, make sure you have your student or senior card to get reduced fares at attractions and also for public transportation. Sometimes attractions have combined rates to save you the cost of obtaining separate tickets. When you arrive at a location, decide which attractions you want to go to before deciding whether a combo ticket is worth it, as unworthy attractions also cost you unnecessary time and money.
  6. Relax in your accommodation, in public institutions such as libraries and shopping centers instead of paying for the bathrooms. These things add up. You may also want to save on unnecessarily drinking tea and coffee as they add to the burden on your bladder, drain your funds, and don't make you more awake or alert.
  7. Drink tap water whenever it is safe. Even buying water adds up. Always check online. I've been drinking tap water in Europe, the US, and Canada, and I've never had races. Not so for India, check that your bottled water is sealed.
  8. Travel with little luggage, so you never have to hire a taxi or tip the porter. You also save on paying for luggage every time you need to check it in. Some buses charge extra for luggage also per piece. In Venice, trolleys are prohibited and you can be fined.
  9. Rethink rail passes. Are you constantly traveling or on the train to take advantage of what the rail pass offers while you should explore on foot and take a few days in a world-famous city? If so, wasting time in that city or spending less time than it should could cost you because you would have to return later.
  10. Skip the middle man. This applies to tourist agents and agencies. Do your research and travel to a place yourself, unless it is too difficult to find and the economies of scale of traveling to that place through an agency make sense. Otherwise, most of the time it is 90% more expensive to go through an agent and an agency because that agent and that agency have to gain something from you.
  11. Know what is important to you. If that Unesco site is so expensive but it is what your heart yearns for ... do it so as not to regret it ... you have come this far. Similarly, everyone is heading to that theme park, but if it is not important to you, save that money and spend it on something that is important to you, that you have gone all the way to see.

I have two answers, they both say "NO"

@@@@
Using most definitions based on absolute numbers ("billionaires", "millionaires"), most people who travel the world say they are not rich. Even most millionaires (USD) in an expensive area like San Francisco would say that they are not rich ... They would also say that it is cheaper for them to travel the world than to stay at home ...

I follow the definition of wealth as "time you can live and pay bills without working." You are rich when T> your life expectancy, then money works for you ...


Second answer: while I was on my first sabbatical, I met a hitchhiker. In fact

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I have two answers, they both say "NO"

@@@@
Using most definitions based on absolute numbers ("billionaires", "millionaires"), most people who travel the world say they are not rich. Even most millionaires (USD) in an expensive area like San Francisco would say that they are not rich ... They would also say that it is cheaper for them to travel the world than to stay at home ...

I follow the definition of wealth as "time you can live and pay bills without working." You are rich when T> your life expectancy, then money works for you ...


Second answer: while I was on my first sabbatical, I met a hitchhiker. In fact there were two, but one was "new", learning from the other ...

This girl was born in Israel, but she was not rich ... She was born and raised in a poor neighborhood. I didn't even know Israel had them ... I had to travel more to find out that even developed countries have slums. If you don't understand what your closest slum is, try learning about it, but you can substitute "homeless" for it and that would be enough.

After turning 18, he was still homeless. Not surprisingly, most people born penniless have a hard time becoming wealthy people.

But that life that is too difficult for most of us who read Quora, was "normal" for her. She was able to support herself, every day, in the black economy. Sometimes you can be hungry, sometimes it's easier, but most of the time you don't have enough money to pay for tomorrow. Basically the same situation as the 1,000,000,000 (billions or billion Americans) at the bottom

The difference is that she realized that not having a home, not having a regular job, not having money, living day to day, the place made no difference to her.

So he started traveling. With literally zero money required. Walking or hitchhiking most of the time, paying for a bus every now and then to get or save a few bucks.

I asked him the same question that he should be thinking ... But how does he survive?

She comes to a new city, finds the local slum (or similar, downsized if she wishes) and fits into the culture ... Find what she can do that is needed there. There is always work for the day in the informal economy ... Transporting things, cooking, doing laundry, cleaning the bathroom, covering someone who did not show up ... Enough to survive ... Couchsurfing mainly, sleeping on the street when if necessary, pay the cheap rooms that the poorest pay when there is no other way.

I'm too spoiled to join such a trip. And most of us are much richer than her, but we travel less.

We talked about many places that I have traveled, she had been to most of them, almost all the places that she had visited in Europe and the United States, and then some that not, and then in Egypt, Asia and Australia, where not I have visited. been at all ... She was coming to northern South and Central America, starting her first visit to Mexico. At that time, I had not even touched those two (a year later I visited the first country in the region) ... So my greatest contribution to their travels was to tell them what I recommend in my country of origin (Mexico) ...

She was in her third year of traveling as part of her life.

I learned a lot from that hour-long conversation and extended my sabbatical plan from one year to two, then (unplanned) a few more months ...

Many people said "You have to be rich to have spent two years traveling and enjoying without work." I can tell you, I proved that that is not true for me, and I saw that it is not true for someone orders of magnitude poorer than me.

It depends on what you are an expert on.

Any business you enter will have competition.

Ideally, you want to have more skills than people in the same market as you.

The real estate sector is a solid investment.

CRYPTOCURRENCY

Stocks / options

There are many people who start online stores who make millions in a year. Disclaimer: I don't know your skill level or whether or not you would take action, so I cannot assume or guarantee those kinds of results for you.

Buy low, sell high, repeat. With real estate, things take longer unless you are making quick turns.

Anything with a low overhead and a solid brand

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It depends on what you are an expert on.

Any business you enter will have competition.

Ideally, you want to have more skills than people in the same market as you.

The real estate sector is a solid investment.

CRYPTOCURRENCY

Stocks / options

There are many people who start online stores who make millions in a year. Disclaimer: I don't know your skill level or whether or not you would take action, so I cannot assume or guarantee those kinds of results for you.

Buy low, sell high, repeat. With real estate, things take longer unless you are making quick turns.

Anything with low overhead and a solid marketing strategy can turn into a 7-figure business in 5 years, provided there is enough demand in the market.

All companies with a good marketing strategy can do well, even if they only have one product. for example, dollarshaveclub - sold for 1B +

Online, offline, etc. I personally know a lot of people who started with 50k and turned them into 7-figure deals in less than a year. For most of them, 80% of the budgets were spent buying web traffic. Whenever you run ads, think about where you see the ads. News feed from Facebook, on Google, etc. Those are the places you buy traffic to reach your target market - avoid scams.

He would invest a lot of his money in knowledge. The right information can save you from wasting a lot of time and money.

“Give me six hours to cut down a tree and the first four I will spend sharpening the ax. - Abraham Lincoln"

1) Solve one problem at a time.

So many things have been proposed to be solved, it is not surprising that he does not know where to start.

Best Questions:
1 - How can I find more opportunities in Architecture?
2 - What is the cheapest way to get to <insert a city you want to visit>?
3 - What are some jobs for travelers in <insert a city you want to visit>?
4 - How can I create a budget?
5 - Here is my budget, what items am I spending too much money on?
6 - I sent this resume / application to X, and they responded with Y? How could it improve?

2) Find a place with work, earn money.

There are many countries with

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1) Solve one problem at a time.

So many things have been proposed to be solved, it is not surprising that he does not know where to start.

Best Questions:
1 - How can I find more opportunities in Architecture?
2 - What is the cheapest way to get to <insert a city you want to visit>?
3 - What are some jobs for travelers in <insert a city you want to visit>?
4 - How can I create a budget?
5 - Here is my budget, what items am I spending too much money on?
6 - I sent this resume / application to X, and they responded with Y? How could it improve?

2) Find a place with work, earn money.

There are many countries that lack trained professionals. Architecture may not be in demand where you are from, but if you are looking for work in developing countries it could be easier.

I have a friend who works in Africa right now making software. There is a lot of work to be done there, but there is also a shortage of professionals capable of doing it.

Or teach English. Or become a waiter at a restaurant. People do all kinds of random jobs on the go.

Watch the show Dave Samwell mentioned. A simple Google search for "Countries with working holiday visas" turned up this helpful list:

What countries offer work and vacation visas? - Global Goose Travel Blog

3) Be cheap.

Don't go out for a drink.
Buy all your food at grocery stores.
Staying in hostels.
Surf coach.
Hitchhike between cities.
Find places that allow you to volunteer for free accommodation.
etc.

4) Stay in one place for a while.

Daily expenses = (Total food costs + Total accommodation cost + Travel cost to get there + Other costs) / Total time spent there

If you live in 1 place for a while:

  • Your accommodation becomes cheaper. You can rent a room or get discounts at a hostel.
  • Your food gets cheaper. You can buy food in bulk and eat it throughout the month.
  • Your travel costs become less of a factor.
  • You can work and save money.

Much cheaper than going from one city to another every few days.

5) Start slowly. Don't plan too much.

Setting your goal as "Travel the world" is pretty huge. Planning such a trip would be very overwhelming.

I took care of the time and money for a 12 month trip around the world. The "plan" was to go from Colombia to Romania. 1 month per country, 7 countries in South America and a lot in Europe. Good to go, right?

I arrived in Colombia and in my first city I spent 2 weeks learning Spanish and adapting. Everywhere I went, people had more and more suggestions for places to go.

I ended up spending 2.5 months in Colombia.

I am currently in Peru. The first 3 cities took me 1 month to get through. Then I stayed 1 month in Lima. Now I am going to use my last month just to get to Machu Picchu.

At this rate it will take YEARS to finish my journey. There is no way I could have planned all the places I would go / things I would see.

The only thing my plan was good at was to make me feel like shit for not keeping up with my plan.

“He was supposed to be in Chile at this point! I'm never going to finish South America! "

“Did I just spend 1 month in Lima ?! What the hell was he thinking ?! "

Maybe you are the type of person who can climb 3 mountains a week and enjoys spending every night on a bus changing cities. For me, that was VERY exhausting.

Choose a city. Go there. Do what feels right to you.

That has made traveling so much more rewarding for me.

Good luck!

About 2 million years ago, when air travel was relatively inexpensive (and they served steak in economy class, and his whole family came out to see him off, and I could watch the plane come and go from an observation deck) I saved about $ 900 and traveled around Europe for about 8 months. Yes, we were incredibly cheap, giving up meals sometimes and decent accommodation, hitchhiking, accepting generosity from strangers, especially in the beginning.

Later in the trip, the excitement of living on a dime a day faded and we spent more freely, but we ran out of funds and had to have some money.

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About 2 million years ago, when air travel was relatively inexpensive (and they served steak in economy class, and his whole family came out to see him off, and I could watch the plane come and go from an observation deck) I saved about $ 900 and traveled around Europe for about 8 months. Yes, we were incredibly cheap, giving up meals sometimes and decent accommodation, hitchhiking, accepting generosity from strangers, especially in the beginning.

Later in the trip, the excitement of living on a dime a day faded and we spent more freely, but we ran out of funds and had to wire some ourselves in Geneva.

The second trip was roughly the same amount of money, still backpacking but not so desperately stingy, and I stayed a bit longer, because the last few months were on a kibbutz in Israel (about which I didn't know anything at that time). time, but it was a great experience).

I think there are now more affordable and comparable trips available in Southeast Asia, according to friends. How much money you really need depends on whether you are young, adventurous and don't care about sleeping bags, or you prefer clean, dry, safe places to sleep and enough money to spend on cooking and local culture, or you prefer luxury. . , first class travel and front row seats.

  1. Live in an MSA 1 with more than 500,000 people.
  2. Choose a skill that will be in demand for the foreseeable future (ie computer science, mechanical engineering, or accounting).
  3. Get credentials that allow you to get an entry-level job in one of the fields above.
  4. Build your expertise, take on projects others don't want, get to know the company, and act as an owner in resolving cross-team issues.
  5. Document a commendable portfolio.
  6. Find and meet the best people in your field in your city. Ask these people great questions about the field.
  7. If an opportunity at another reputable firm would give you noticeably more
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Footnotes

1 List of metropolitan statistical areas - Wikipedia
  1. Live in an MSA 1 with more than 500,000 people.
  2. Choose a skill that will be in demand for the foreseeable future (ie computer science, mechanical engineering, or accounting).
  3. Get credentials that allow you to get an entry-level job in one of the fields above.
  4. Build your expertise, take on projects others don't want, get to know the company, and act as an owner in resolving cross-team issues.
  5. Document a commendable portfolio.
  6. Find and meet the best people in your field in your city. Ask these people great questions about the field.
  7. If an opportunity at another reputable company would give you noticeably more responsibility than is possible at your current company, then jump!
  8. Repeat, and it will probably hit 100k / yr within a decade or two, depending on the field.

While there are no guarantees, this appears to be the most reliable six-figure route for most people.

Footnotes

1 List of metropolitan statistical areas - Wikipedia

Definitely. I would do it multiple times, the same country multiple times, the same country in different climates.

The amount of "understanding" you would develop in life has a great impact on your own life and will be with you until you die. No amount of education can replace that. Traveling is not just seeing sights, but also experiencing cultures.

I learned from the Chinese how to eat healthy (sounds hard to believe given the very localized bad food you get in US Chinese restaurants, the cheap ones), how to be close to family, how to live on a cheap flight.

I learned from French how to appreciate well

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Definitely. I would do it multiple times, the same country multiple times, the same country in different climates.

The amount of "understanding" you would develop in life has a great impact on your own life and will be with you until you die. No amount of education can replace that. Traveling is not just seeing sights, but also experiencing cultures.

I learned from the Chinese how to eat healthy (sounds hard to believe given the very localized bad food you get in US Chinese restaurants, the cheap ones), how to be close to family, how to live on a cheap flight.

I learned from French how to appreciate the finer things in life, how to eat cheese, how to drink wine, how NOT to drink too much wine, how to maintain a very good balance with food, drink, family, etc.

I learned from Japanese, humility, integrity, respect, hard work, the importance of method and process, healthy food, being one with nature, the importance of ancestors (Mexico too). The team is more important than the individual.

I learned from Americans how to be open, how to embrace cultures, how to value merit, integrity, freedom.

I learned from the Italians about family, food, passion, keeping the roots alive.

Learned A LOT from my own Indian heritage (which I wouldn't go into)

I learned from Icelanders, the equality of women, the value of nature and its preservation, the management of very limited resources, survival in harsh environments, determination (look at your football team; for a small country of 300,000 inhabitants) , how to promote yourself (tourism).

I learnt from the English how to have fun, how to accept the world around them, how to integrate themselves with every changing social landscape around them(barring Brexit chaos of course)

I learnt from Germans, pride in self, importance of process, perseverance

…I am not mentioning all the countries in the world..Just some examples..

There are two major ways to do it, and probably more if you combine aspects of each alternative:

  1. Plan everything. Every country, every transport, down to the most specific detail. This requires incredible research, so you know where you want to go, what visas you will need, how much money you’ll need for each country, and how much to get to the next country.
  2. The other extreme is traveling ad hoc. I think I'll go to Canada. From Canada, you go to Japan. From Japan, maybe from China. After China, South Korea, etc. All you have to plan for is your passport (make sure it is valid for 18 months) and
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There are two main ways to do this, and probably more if you combine aspects of each alternative:

  1. Plan everything. Every country, every transport, down to the last detail. This requires incredible research, so you know where you want to go, what visas you will need, how much money you will need for each country, and how much money to get to the next country.
  2. The other extreme is to travel on an ad hoc basis. I think I’ll go to Canada. From Canada, you go to Japan. From Japan, maybe China. After China, South Korea, etc. All you have to plan is your passport (make sure it’s good for 18 months) and money. I would use two credit cards that can be used in ATM machines (two cards in case you lose one or it turns you down for some reason).

I’ve always started out with a plan (step 1)- here’s where I’m going, what I’m going to see, etc. And the melt into step 2 - where do I want to go from here?

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