It’s never too late to follow your dreams of traveling the world. Maybe you want to renovate a van and be a digital nomad. Or perhaps you’re retired and want to travel the globe before settling down permanently. Whatever your dream, there’s a way to make it happen. 

You’ll encounter plenty of unexpected expenses during your trip. So, can financial planning set you up for long-term travel? Of course! The threat of unfortunate circumstances and extra travel costs is even more reason to plan ahead, start saving early and budget wisely. 

There are plenty of factors to consider when financial planning for long-term travel. Below, you’ll find a few of the most important. 

1. Saving for Departure

When you envision long-term travel, you might picture boarding a plane or going on a really long road trip. Few imagine all the work it takes to even get to departure day. Before you set out the door, you have to pay for travel insurance, gear, necessary immunizations and housing arrangements. Perhaps you’ll even book excursions and other activities in advance. 

That’s why you must start saving for departure well in advance. Add these and other expenses to your financial plan and create a budget that cuts costs and boosts savings. How can you generate more income or minimize spending to put away more cash for your trip? 

2. Prepping for Long-Term Travel

Once you can afford to buy tickets and set sail, you must start saving for long-term travel expenses. What will your monthly expenses look like on the road? How much will food, accommodations, internet, activities and transportation cost? 

Sometimes, each category will fluctuate and cost a different amount each month, especially if you’re visiting a new destination every few days or weeks. Budgeting for nomad life is tricky, but you can make an estimate by doing some research on the cost of living in each place. When in doubt, round up your expenses to account for uncertainties and unknowns. 

3. Covering At-Home Costs

Are you planning to leave a pet, car, partner or house behind? Odds are you’ll have to pay at least a few bills while you’re away. Factor them into your budget and prioritize these at-home expenses by weaving them into your financial plan. 

Get creative about turning these money suckers into income, too. Turn your negatives into a net positive by renting out your living space or even selling your car. Consider canceling any recurring payments that don’t relate to your travel expenses if you plan to be away for more than a few months.  

4. Planning for Emergencies 

Regardless of how well you plan, things will inevitably go wrong during your travels. Whether it’s a small hiccup or a huge last-minute change, these mishaps will make for the best adventure stories later on. Unfortunately, they’re not too fun firsthand, which is why you should prepare for these emergencies as part of your financial plan.  

How much you’ll need depends on your situation. Imagine the most common kind of unexpected expenses you might face on your journey. Would they force you to end your travels early if you failed to save enough money now? Build an emergency fund and plan to make contributions periodically during your travels to cover preventative maintenance. 

5. Reintegration Costs

If you plan to quit your job and travel the world, you might enjoy your trip the most. Without work to weigh you down, you can focus on travel alone. As long as you stick to your budget, you should have the time of your life. Just remember to include reintegration costs into your financial plan. 

These costs include any extra spending related to reintegrating into society. When you stop traveling, will you have to buy furniture, get an apartment or even buy a house? Perhaps you’ll even have to pay for temporary housing between ending your journey and finding a new living space. Take all of these factors into consideration when making an expense budget. Inevitably, one or two reintegration costs will apply to you, so plan accordingly.  

6. Tracking Cash Flow

Sure, the whole money in, money out system seems pretty straightforward, but you’d be surprised how a few dollars here and there can really do you in if you’re not careful. Keep an eye on every cent and put your financial plan into action by tracking your cash flow. 

Use an old-fashioned envelope system to categorize your spending or find an app that does it all for you. You can even open separate savings accounts, create spending limits and manage your account online to reach your goals. A financial advisor can also provide guidance and direction as you create a long-term travel budget. Find one that aligns with your values and aspirations and will speak the truth, even when it might force you to be more frugal than you’d like. 

There’s No Time Like the Present

Most Americans spend countless hours planning their dream vacation, especially when it involves long-term travel. Yet, nearly three in four Americans go into debt to get away. The bills that follow often linger long after their sunburns and smiles fade. 

Don’t let the same thing happen to you! Turn your long-term travel dreams into a reality and start saving today. There’s no time like the present to put your financial plan to the test. The world awaits!