back to indexRPF0646-How_to_Travel_the_World_On_The_Cheap
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Welcome to Radical Personal Finance, a show dedicated to providing you with the knowledge, 00:00:04.040 |
skills, insight, and encouragement you need to live a rich and meaningful life now while 00:00:08.700 |
building a plan for financial freedom in 10 years or less. 00:00:11.800 |
My name is Joshua, and today I want to help you to live a rich life now while not damaging 00:00:17.120 |
your plan for financial freedom in 10 years or less with a discussion of how to travel 00:00:24.120 |
I've been out traveling the last couple of weeks, and I'm now back at home, back in front 00:00:28.400 |
of my microphone, and ready to get back to work. 00:00:31.000 |
Of course, when you're on the road, it's a useful time to think about the subject of 00:00:35.920 |
It has been my personal experience that the vast majority of people have, at least they 00:00:41.360 |
say they have, a major life goal of traveling. 00:00:45.400 |
The reason I modify the statement is when you ask them, they say they want to travel, 00:00:49.640 |
but when you look at many people's lives, it seems to me that most people don't actually 00:00:56.200 |
But for years I worked as a financial advisor, and as part of that process I would ask people 00:00:59.560 |
about their life goals and their financial goals, and especially I would talk to them 00:01:05.320 |
And I would estimate about 80% of the time when I would ask somebody what they wanted 00:01:09.320 |
to do when they were retired, they would say something like, "I'd like to travel more." 00:01:13.080 |
And then I would try to open them up and say, "Well, what do you mean? 00:01:20.060 |
And I learned that everyone says they want to travel, and yet very few people are clear 00:01:25.440 |
on exactly what it is they want to do or how they want to do it. 00:01:32.160 |
First, many people don't like traveling, and I think that's perfectly fine. 00:01:36.680 |
Frankly, after traveling I'm always happy just to get home. 00:01:40.320 |
One of the best things about traveling is that it makes you appreciate your house. 00:01:46.960 |
In fact, I'm at a place where at the moment I don't particularly want to travel much right 00:01:52.680 |
I have been very fortunate and blessed to be able to travel quite a bit in the past. 00:01:57.120 |
I'm sure that I will travel more in the future, but right now I don't want to do any more 00:02:02.000 |
And there are lots of people who just recognize that they're unproductive when they travel, 00:02:05.280 |
they're uncomfortable, they don't see the point. 00:02:07.560 |
They'd rather sit at home and be in their comfortable surroundings and watch travel 00:02:16.080 |
Nobody has to force anybody to do anything they don't want to do. 00:02:18.520 |
But I know that a lot of people have this desire to travel, and I want to help you if 00:02:26.440 |
I want to show you how you can travel now, how you can do it soon. 00:02:30.600 |
I do believe there is great value in traveling, because traveling, being in unusual situations, 00:02:39.000 |
unusual places, it exposes you to things that can have a formative impact on your life. 00:02:45.320 |
It can help you to see the world differently. 00:02:49.320 |
It can help you to consider your own ideas and consider are they really true, or are 00:02:54.720 |
you just think they're true because you haven't been exposed to alternative ways of seeing 00:03:00.800 |
If you say that you'd like to travel, I want to help you do that. 00:03:07.960 |
I was also inspired by stumbling across a video on YouTube from a channel called Canrush, 00:03:14.040 |
wherein a couple, a Canadian husband and his Russian wife who live in Russia, profiled 00:03:21.160 |
and talked about the way that they traveled the world. 00:03:24.280 |
And so they traveled the world for a total of 752 days. 00:03:29.160 |
So that's about two and a half years, or just over two years. 00:03:36.920 |
On this round-the-world trip, they traveled from Moscow across to China, across India, 00:03:42.880 |
then to Egypt, then they hitchhiked all around about eight countries in Africa. 00:03:47.880 |
They flew from Angola to Brazil, did the whole tour down and up through South America, up 00:03:53.360 |
through Central America, and then all across the United States and Canada. 00:03:56.160 |
I don't remember the exact number of countries, but probably 35-ish countries, 30 to 40 countries 00:04:06.840 |
And in that time, how much do you want to think that they spent as a couple traveling 00:04:17.560 |
The total that they spent, and they were very diligent about tracking their expenses, the 00:04:20.640 |
total they spent to travel for two years was $13,431. 00:04:29.040 |
And when they left Russia, they just had money in a bank account, I think something like 00:04:32.280 |
$15,000, $10,000 or $15,000, and they just went out planning to travel until their money 00:04:38.800 |
And because of that, they were extremely frugal and used it, and were able to stretch their 00:04:51.000 |
I'll go over some of their expenses in a minute, and I'll make sure to link you to the video. 00:04:54.880 |
Maybe I'll pull the audio from it and share it with you so that you can listen to him 00:05:04.120 |
A couple, two people traveling for over two years with a total money of $13,431. 00:05:10.660 |
Their daily cost, of total daily cost, was $17.86 per day, including all of the expenses. 00:05:20.520 |
Now that is expenses included buying and selling several cars, renting cars, et cetera, in 00:05:26.940 |
And so they could have traveled cheaper if they'd had some better fortune with the cars 00:05:30.280 |
that they bought, but total it was $17.86 per day. 00:05:33.720 |
If they pulled out the cars and such, it came out to about $12 per day. 00:05:39.920 |
So let's talk about some strategies that you can use. 00:05:42.440 |
If you want to travel, but you feel constrained by money, here are some useful strategies 00:05:47.520 |
to help you accomplish your traveling goals sooner, to help you do it on the cheap so 00:05:51.800 |
that you continue to save money, or to help you to do it when you don't yet have a lot 00:05:58.260 |
The first thing is to recognize traveling can be done by any person in the world who 00:06:06.520 |
wants to do it without regard whatsoever to your financial condition. 00:06:15.120 |
You can travel if you want to do it without regard whatsoever to your financial condition. 00:06:25.760 |
If you want to travel, you walk out your front door, toss the keys to somebody, walk out 00:06:31.680 |
your front door, turn right or turn left, and go. 00:06:44.740 |
Any person in the world can walk out their front door, leave the keys in the lock, and 00:06:49.720 |
turn right or left or maybe straight ahead and start walking. 00:07:01.240 |
Now maybe you walk, maybe you stick your thumb out and wait for a ride, maybe you go down 00:07:05.960 |
and buy a bus ticket, maybe you get on a bicycle, buy a bicycle and start pedaling, but that 00:07:20.120 |
Over the years I've always had an interest in extensive travel stories. 00:07:24.160 |
I've read, I don't think I've read books, but I've read essays and websites and articles 00:07:29.240 |
about people who have walked across the world for years and years. 00:07:33.760 |
I've read essays about people who've bicycled across the world. 00:07:37.400 |
I've read essays about people who ride motorcycles and drive. 00:07:42.280 |
There's a great website that was curated by an Australian couple called Lost Horizons 00:07:48.320 |
who over the course of about a decade, maybe a decade and a half, rode one Harley Davidson 00:07:57.000 |
Remarkable and they chronicled it all on their website. 00:08:02.120 |
So you can do it in all different forms, but you can do it just simply by walking. 00:08:06.800 |
And you can walk without a dime to your name. 00:08:11.160 |
And along the way you can figure out how to provide for your sustenance. 00:08:14.840 |
Now that's probably not what you were thinking of when you talked about traveling and wanting 00:08:20.480 |
That's certainly not necessarily what I'm thinking of. 00:08:22.760 |
If I really wanted to travel and I had never traveled, I would consider walking out my 00:08:27.320 |
front door, turning left or right, but that's never been my particular thing. 00:08:33.520 |
Maybe I'll walk across the United States or walk across Europe. 00:08:35.840 |
But thus far that's never really appealed to me. 00:08:39.060 |
So you do need to think about what you are trying to accomplish in your travels and clarify 00:08:45.200 |
But don't assume that because somebody else travels in a luxury personal automobile or 00:08:51.480 |
a giant RV or first class airfare all around the world in five star hotels, don't assume 00:08:57.280 |
that that's exactly what you want to do and what you need to do. 00:09:01.640 |
I think most of us, if given the choice between flying around the world using first class 00:09:08.080 |
tickets on premier airlines, staying in five star hotels and eating at fine dining restaurants 00:09:14.360 |
without regard to the cost, if we were given the opportunity to travel in that way versus 00:09:19.720 |
the opportunity to walk across the world, sleep on the ground under the stars and eat 00:09:23.920 |
what people gave us to eat, most of us I think would prefer the five star hotel route. 00:09:31.360 |
But if your choice was between traveling on a budget, even a severely restricted budget, 00:09:37.680 |
and not traveling at all, I think a lot of us would choose the traveling on a budget 00:09:48.400 |
If you're comfortable in your home, again, realize, "Hey, I don't want to travel that 00:09:53.480 |
But there are a lot of us who would rather travel on a budget because it provides that 00:10:03.480 |
Now, there's a very decent chance that you have more resources than simply a pair of 00:10:09.120 |
shoes that you're going to walk around the world in. 00:10:11.880 |
You probably have stuff already that works for you to travel. 00:10:15.720 |
You probably already have a car, for example. 00:10:18.240 |
Well, that's probably your best place to start. 00:10:20.920 |
If you have a car and you want to travel, consider just simply traveling in your car 00:10:25.920 |
and using that to be your means of transportation. 00:10:29.760 |
In some places, that can be a very inexpensive way to travel. 00:10:33.800 |
Probably the best here would be the United States and Canada. 00:10:37.360 |
Traveling around the United States and Canada in car is probably going to give your best 00:10:42.000 |
solution and be really your most frugal strategy. 00:10:47.520 |
The hostile network is not like it is in other places. 00:10:50.920 |
Having your own car can be a very low price and effective strategy. 00:10:57.900 |
When I was younger, newly graduated from college, one of the things that I did that was really 00:11:02.560 |
for me quite helpful and empowering was I took a trip around the United States in an 00:11:07.920 |
old car that I had, the first car that I ever had. 00:11:12.160 |
When I graduated from college, it was an old Honda Accord. 00:11:16.480 |
I wanted to travel, but as memory serves, I think I had a couple thousand dollars in 00:11:25.040 |
I was scared to go off in my car and drive this car with 200,000 miles all around the 00:11:33.280 |
I leave it on the side of the road and I buy a bus ticket or a plane ticket home and I 00:11:38.520 |
I'll make sure that I have enough money to buy a bus ticket or a plane ticket home and 00:11:43.760 |
I took the car and drove it all around the United States, all around Canada. 00:11:48.600 |
I mapped my trip out by where I knew people and so I could stay on people's houses. 00:11:54.920 |
That also helped with food because I could eat with them. 00:11:57.760 |
I spent a good bit of money on gas, but almost nothing on lodging and traveled for several 00:12:07.300 |
If you don't have a car, then look and say, "What else am I trying to do?" 00:12:12.680 |
From here on out, I'm going to talk about international travel because I would guess 00:12:16.940 |
that for most of us, international travel is probably somewhere that we have a bit of 00:12:24.280 |
Yet, you can walk out your front door and you can go 10 miles down the roads and set 00:12:29.000 |
up a tent in the woods near your house and you are, by definition, traveling. 00:12:33.400 |
But you're probably already doing that, so you don't need much input from me. 00:12:37.060 |
You can go to the next state over, but again, you probably don't need much from me to do 00:12:43.120 |
But if you're thinking about going on to the other side of the world, perhaps that might 00:12:47.480 |
So let's talk about how do you save money and travel the world on the cheap. 00:12:55.000 |
In traveling, there are a few different categories of costs. 00:12:59.240 |
Your number one cost in traveling is going to be the cost of your life at home. 00:13:06.680 |
This is a very important concept for you to grasp. 00:13:15.180 |
If you rent a house or have a mortgage payment and you continue to maintain that rental house 00:13:21.280 |
and that mortgage or that mortgaged house while you are traveling, you will have your 00:13:27.360 |
home expenses and your travel expenses to pay for. 00:13:35.160 |
Now, it's possible that you may not have those expenses if you live in some way where you 00:13:39.880 |
don't pay a monthly rent payment or you own your house outright so you don't owe a monthly 00:13:47.320 |
But your biggest cost of travel is going to be if travel is added on to your normal expenses. 00:13:55.240 |
So you have to think about this and ask yourself, "Is there a way that I can eliminate these 00:14:01.440 |
In 2018, my family and I traveled around the United States in a travel trailer, in an RV. 00:14:08.840 |
But one of the things that we did in that time was we made sure that we abandoned all 00:14:17.080 |
So we stopped renting the apartment that we were renting previously. 00:14:20.680 |
We made sure that we canceled all of our expenses so we had no expenses from home. 00:14:29.040 |
In traveling the country full-time, we spent more or less the same amount of money traveling 00:14:39.120 |
It's just the numbers were changed a little bit. 00:14:41.440 |
Now it wasn't perfectly more or less because of the purchase price of vehicles and such. 00:14:47.520 |
So it wound up being a little bit more based upon the cost of the transportation. 00:14:54.400 |
But in terms of being on the road, once you buy the vehicles, which that can be budgeted 00:14:58.160 |
for if you buy an RV or need a car or whatever it is you need, once you're on the road, then 00:15:03.240 |
the basic costs are just what you have on the road. 00:15:06.600 |
And so if you eat at home, you have the cost of eating at home and you have the cost of 00:15:13.480 |
But if you are used to paying $1,500 a month on rent, you can either pay $1,500 a month 00:15:18.680 |
on rent in Boston, Massachusetts, or if you have an RV, you can pay $1,500 a month in 00:15:25.840 |
But it's your costs that are additive that make it tough. 00:15:29.640 |
This is where the vacation model becomes really challenging. 00:15:33.160 |
If we go with the basic concept of a two-week vacation where you say, "Okay, we have our 00:15:38.360 |
normal life, but around the holidays or in the summer, we're going to take a two-week 00:15:41.800 |
vacation or a four-week vacation," all of your travel expenses generally are going to 00:15:49.360 |
Thus, your vacation is going to be very high. 00:15:52.600 |
If you can figure out a way to eliminate or defray your expenses at home, then your travel 00:16:03.680 |
You can do the drastic step of giving up an apartment, not renting an apartment anymore, 00:16:09.280 |
of selling your house, putting your things in storage, or getting rid of all your things. 00:16:15.200 |
It's a lot of work, but it can be done and it can give you that ability to go where you 00:16:25.840 |
It's something that I think very few of us ever do. 00:16:28.640 |
I like to do things myself before I talk about them, but I've gone through the various stages 00:16:39.080 |
When I was younger, of course, I had few possessions. 00:16:41.580 |
My wife and I lived in a tiny studio apartment when we first married. 00:16:45.920 |
I adjusted our possessions to fit the big house, had tools and stuff everywhere. 00:16:50.280 |
Then we downsized into an apartment, downsized into an RV, and then ultimately downsized 00:16:54.080 |
into about seven or eight suitcases and traveled with all our children across the world with 00:17:00.320 |
It was remarkable how we could be perfectly comfortable living out of seven or eight suitcases. 00:17:05.880 |
There were some things in the seven or eight suitcases that we really missed. 00:17:10.680 |
That was more due to the challenge of being parents of young children. 00:17:15.080 |
For example, you have a small number of toys fit in the suitcases, which was great. 00:17:20.000 |
A small number of books fit in the suitcases, which was great. 00:17:23.240 |
But we got really tired of reading the same 15 or 20 books again and again and again and 00:17:32.440 |
But in terms of the flexibility of recognizing that, wow, with eight suitcases, even though 00:17:37.360 |
in my case I have a large family, I can move my entire family in a minivan or a sedan. 00:17:43.840 |
It's remarkable how much freedom that can bring to you. 00:17:46.880 |
So it's really freeing to be free of possessions. 00:17:50.080 |
I'm not a proponent of the philosophy of minimalism as being good in and of itself. 00:17:57.960 |
I think it's short-sighted to say that there's somehow a prize for whoever has the least 00:18:04.880 |
To me, it seems that the number of physical possessions that you have should fit the lifestyle 00:18:10.680 |
So if you want to live on the road, pack light. 00:18:14.200 |
If you're going to be a farmer, you're going to need more possessions because trying to 00:18:17.600 |
be a farmer and live out of a suitcase can be very, very frustrating. 00:18:20.680 |
The hoe doesn't fit in the suitcase or the tractor. 00:18:30.340 |
Another way to cover those costs is to defray your expenses. 00:18:34.960 |
Now you can do this formally or you can do this when you see an opportunity. 00:18:39.160 |
For example, you can do a vacation house swap. 00:18:43.080 |
Let's say you have a house and you live in Boston, Massachusetts. 00:18:48.360 |
Well get online, go to one of the house swap websites and see if you can do a house swap 00:18:53.600 |
And you can live in their house in Dublin, Ireland and they can live in your house in 00:18:58.880 |
You can also do this when you see an opportunity for perhaps a low-maintenance tenant to rent 00:19:04.960 |
Maybe you have a family member who's going through transition time and they're looking 00:19:07.500 |
for a house to rent but just on a short-term thing. 00:19:10.160 |
Well put them in your house for a couple of months. 00:19:14.220 |
That covers your cost of home and go travel for a couple of months. 00:19:17.080 |
It allows you to not have to move out of your place but it simply allows you to go on the 00:19:22.200 |
road and you can do that of course with a more arm's-length rental transaction as well. 00:19:26.720 |
Rent your house out for a year, go travel for a year, come on back, open up the lock 00:19:31.040 |
shed in the back where you put your personal items, put them back in your house and you're 00:19:36.160 |
But think about how you can eliminate the costs of your life at home. 00:19:42.180 |
This is why being free of debt is so important so that you don't have a big debt load because 00:19:47.460 |
if you don't have debt, it's very easy to cut off your home expenses. 00:19:50.440 |
This is why keeping your life relatively contract-free, not having contracts on your cell phone and 00:19:57.620 |
not having contracts on your internet and all that stuff. 00:19:59.600 |
So then anytime you want, you can just turn the stuff off, say that's it, this is the 00:20:03.580 |
You can easily cut your expenses at home, go on the road and then come back and pick 00:20:07.920 |
But recognize your biggest cost is most likely going to be the cost of maintaining your life 00:20:13.860 |
Now with regard to actual travel expenses, your first category is transportation. 00:20:19.800 |
Transportation for you from one place to another. 00:20:23.020 |
And so one of your major strategies needs to be to minimize the costs of your transportation. 00:20:29.440 |
So you should choose an appropriate travel methodology for your goals and think about 00:20:37.840 |
In my example of turning out the door and walking, that could be a great strategy for 00:20:43.060 |
an active, healthy young person who just has a little bit of money and isn't too concerned 00:20:50.220 |
about going to the other side of the world necessarily. 00:20:52.800 |
That would be harder for somebody like me with young children and babies who don't 00:20:59.060 |
They don't have quite the hiking stamina that you would like. 00:21:02.580 |
And so when I would think about traveling, I think about how am I going to minimize the 00:21:06.820 |
cost of the transportation in an appropriate way. 00:21:19.280 |
There are lots of things that you can do that will allow you to move yourself around the 00:21:29.480 |
The very inspiring story that I shared with you about the Kenrush channel where the couple 00:21:35.280 |
spent the $13,500 to travel for two years, they exclusively hitchhiked in every place 00:21:42.960 |
except the United States and Canada where they bought a car and with the exception of 00:21:47.020 |
a few international flights to get them from one continent to another. 00:21:50.960 |
But in order to conserve their money, they exclusively hitchhiked in every country. 00:21:56.700 |
And they saved massive amounts of money and had incredible adventures by hitchhiking. 00:22:05.440 |
Another big strategy is to do this, to stretch out your time between transportation so that 00:22:10.960 |
your daily cost of transportation is much lower. 00:22:15.320 |
Say you're an American and you live living in the United States and you want to go on 00:22:20.680 |
Well if you plan a 10-day tour of Europe and you buy plane tickets for a 10-day tour of 00:22:25.880 |
Europe, let's assume your ticket costs $1,000 to get from the United States to Europe. 00:22:32.700 |
With a $1,000 ticket on a 10-day tour, you have a daily cost of $100 of airfare. 00:22:41.160 |
Every day of your trip, you're going to be spending $100 on airfare as we amortize the 00:22:49.680 |
Now if you will increase the time in Europe from 10 days to 30 days, you'll have the same 00:22:59.560 |
You'll have $30 per day on airfare instead of $100 per day. 00:23:05.400 |
Or if you extend it out even further to a 200-day tour of Europe, now your airfare costs 00:23:14.620 |
Question is, is that a good thing for you to do? 00:23:17.160 |
If you were paying a bunch of at-home expenses for your house in the United States, then 00:23:22.120 |
maybe that 10-day tour is all you could afford because you had to get back and stop the travel 00:23:28.040 |
If you're staying in very expensive hotels and you additionally have a $200 a day hotel 00:23:32.920 |
bill, then certainly it's going to be more expensive for you to be on a 30-day tour at 00:23:37.960 |
$200 a day than a 10-day tour at $200 per day. 00:23:40.980 |
But if you can adjust those accommodation expenses in Europe and you can adjust those 00:23:44.180 |
home expenses by simply lengthening out your trip, you'll lower the overall impact of the 00:23:53.960 |
In the example that I gave you with the Canrush couple, the total that they spent on flights 00:24:04.140 |
They flew from India to Egypt, then they flew from Angola to Brazil, and then they ultimately 00:24:17.180 |
And so they chose the flights based upon inexpensiveness, but they traveled around the world for a total 00:24:24.380 |
Whereas if they had gone from their home in Moscow to all these other places, it would 00:24:29.100 |
have been tens of thousands of dollars of airfare. 00:24:32.940 |
Because they had more time and thus could make more efficient choices. 00:24:35.980 |
Now, the other thing is if you'll stretch out your time between transportation, you 00:24:39.580 |
can very quickly have much cheaper options on even the airfare itself. 00:24:45.700 |
For example, if you want to go to France and yet the tickets to France are very expensive, 00:24:52.220 |
if you only have 10 days, you can't fly into the other side of Europe where you could fly 00:24:55.820 |
in for $500 and then make your way on the train system to France. 00:24:59.900 |
You just got to get to France, do your France things and get home. 00:25:02.980 |
But if you have more time, then you can take advantage of a discount ticket or something 00:25:07.620 |
that's just massive discounts to fly into the other side of Europe and then make your 00:25:11.940 |
way slowly to France, which would be much cheaper on the local system than the international 00:25:17.740 |
So consider stretching out your time and calculate your daily cost of air transportation. 00:25:23.660 |
Here are a couple of other things that I would suggest that you do with regard to air transportation. 00:25:28.420 |
First, if you don't care much where you go, first figure out where it's cheap to go and 00:25:38.880 |
When you're trying to travel, the time that you will pay the most money in air transportation 00:25:44.380 |
is when you need to be in a specific city on a certain set of dates. 00:25:51.380 |
I have to be in London from the first through the eighth because I have these events scheduled. 00:25:58.900 |
Well, you're pretty much stuck with whatever the airlines are charging for you to be in 00:26:09.140 |
So even when you go out and try to get a good deal on a ticket, you're going to have a very 00:26:13.620 |
But if you'll shop the tickets based upon what's cheap to get to and you say all of 00:26:17.700 |
a sudden find a cheap ticket to Germany and you say, "Well, that'd be interesting. 00:26:23.780 |
I bet I could find interesting things to see in Germany." 00:26:26.880 |
Then you can take the cheaper ticket, go and then look up and figure out what interesting 00:26:32.500 |
So think about where you can get – find the ticket first that's cheap and then think 00:26:39.180 |
A couple of tools that I use there without doing a full lesson on it first. 00:26:46.340 |
If you go to a website called kayak.com/explore, you can put in your home airport and then 00:26:52.860 |
you can see where in the world you can go on a certain budget. 00:27:05.140 |
So if you live in Miami, you can see where can I fly from Miami, from Fort Lauderdale, 00:27:11.860 |
from West Palm Beach, from Orlando, from Tampa. 00:27:15.180 |
And then you can see the tickets that are available. 00:27:19.660 |
You can check it every day, every couple of days and you can find some really great deals 00:27:24.940 |
There are a number of deal websites and subscription services that also will help you find discount 00:27:31.200 |
So if you're not going to go and travel for a year, you just want to travel from time 00:27:34.560 |
to time but you're open to it, search those companies, find those people who are compiling 00:27:41.100 |
Another tool that I think is so useful is the Matrix software. 00:27:45.700 |
The website for Matrix is matrix.itasoftware.com. 00:27:50.300 |
I'm not going to go deep into this tool but basically it's in many ways a travel agent 00:27:55.380 |
tool which you can use to find interesting flight itineraries. 00:27:59.820 |
It's owned now by Google and it's the software that powers Google Flights. 00:28:06.660 |
But if you're looking for a way to figure out how to put together massively discounted 00:28:10.620 |
airfares from interesting places to interesting places, it's hard to see how you're not going 00:28:20.340 |
Search the internet for the world of travel blogs and airline mile lessons and things 00:28:29.180 |
And one of the things I like to do is just to use it to segment out flights in a way 00:28:34.660 |
For example, one of the things you can do with matrix is you can force long stays in 00:28:40.260 |
So if you want to have a long layover, say you want to have a 22-hour layover in a city 00:28:44.340 |
so you can get a good night's sleep in a local hotel or do some sightseeing without paying 00:28:48.380 |
extra for an extra stopover, the matrix software allows you to do that. 00:28:55.100 |
And then think carefully how you maximize your transport for the number of people that 00:28:59.880 |
If you're a single person traveling alone, hitchhiking is going to be very, very simple 00:29:03.920 |
for you because you can easily fit into a car. 00:29:09.260 |
My family, it's hard to see how anybody is going to have enough room to pick us up. 00:29:13.140 |
So we can't all stand by the side of the road with our thumbs out unless we're expecting 00:29:16.620 |
somebody to ride in the back of a pickup truck or ride in the back of a truck. 00:29:20.940 |
Common in many parts of the world, less common in other parts of the world. 00:29:24.480 |
So we're more likely to choose the efficiency of a driving option of some kind, of owning 00:29:29.220 |
a car or having our own car because it's really efficient for the number of people that we 00:29:37.700 |
Let's say that you are in the United States but you want to take a road trip in Central 00:29:44.900 |
Well, instead of you just going, get a couple of your friends together. 00:29:48.300 |
If you get four dudes in a car, the weight is going to lower the gas mileage a little 00:29:51.700 |
bit as compared to one, but it's going to be pretty close to cutting your costs on transportation 00:29:58.300 |
Every single border crossing in your car is going to be cheaper because the fees for the 00:30:03.180 |
permiso for your car is going to be cut by 75%. 00:30:11.220 |
You'll even save money on the lodging by being with some other dudes. 00:30:15.460 |
So plan it out and think about, is there a way that we can maximize the number of people? 00:30:21.460 |
Your major strategy is, of course, choose a low-cost transportation option that's appropriate 00:30:30.000 |
You can travel the world or your state or your country walking and riding bicycles. 00:30:36.420 |
Very efficient, very flexible, very low cost, and you can have some wonderful experiences. 00:30:41.420 |
Just obviously, if you're walking, you're going to meet a lot more people if you're 00:30:44.460 |
walking or riding a bicycle because you're in the people. 00:30:48.600 |
You're going to try to hide the way that you can if you're hiding in your car, surrounded 00:30:54.920 |
So think about what's an appropriate transportation strategy for you. 00:31:08.840 |
Minimize your needs and then consider what would appropriately fit those needs given 00:31:14.640 |
Another solution is you can just simply sleep wherever you find yourself. 00:31:18.800 |
The vast majority of our ancestors, when it came time to sleep, simply lay down on the 00:31:29.160 |
And it wasn't that long ago that they did that. 00:31:34.240 |
If you were a cowboy riding your horse across the range on a cattle drive, when it came 00:31:39.920 |
time for you to go to sleep, you would lay out your bedroll, which was a blanket, basically 00:31:51.200 |
And you lay down and you slept, which yes, means that you're hot when it's hot, you're 00:31:55.120 |
cold when it's cold, you get rained on when it rains. 00:31:58.020 |
It's uncomfortable generally, but that was what the majority of people have done throughout 00:32:03.080 |
history and even today, what many people in the world do. 00:32:07.400 |
It's really tough to be a rich Westerner and say to people, I don't do this to my family. 00:32:13.240 |
I don't tell my wife, we're going to sleep on the floor. 00:32:15.880 |
We spend the money and I buy the hotel room and get the comfortable bed and such because 00:32:21.120 |
But it's not that way throughout the rest of the world. 00:32:25.520 |
Years ago, I was in Asia and I was traveling in a very poor part of Asia, traveling with 00:32:39.920 |
And at the end of dinner, I look around and I realized that all the noise from all the 00:32:43.760 |
And I look over in the corner and there's just a heap of kids just lying on the floor 00:32:46.760 |
in the corner of the little house that we were in. 00:32:49.560 |
And it really, in one way, impressed me because it was normal for those children that they 00:32:56.400 |
were a bunch of people going from one place to another, but there weren't any fancy accommodations. 00:33:01.840 |
And so the children had just basically collapsed after they were done playing and lay down 00:33:07.320 |
I slept on the wood plank floor on a bamboo mat. 00:33:12.160 |
And you don't sleep all that well, but you do sleep. 00:33:18.600 |
Years ago, when my father was growing up, my grandparents would drive back and forth 00:33:26.640 |
And at night, they would be out in the middle of the desert. 00:33:30.920 |
They would pull over on the side of the road. 00:33:34.480 |
And my grandfather and my dad, they would go out in the bushes and sleep on the ground. 00:33:44.280 |
And even today, if you travel around, you'll see people doing this. 00:33:47.360 |
I go to rest stops, and you see people just sleeping in their car at the rest stop without 00:33:59.200 |
I like to be a little bit more comfortable because I'm kind of soft and weak. 00:34:06.440 |
So you could just travel and sleep wherever you find yourself. 00:34:09.480 |
Now with that as the baseline, now you can move up some levels of luxury as your budget 00:34:17.080 |
Throughout history, many people have lived their entire lives in a tent. 00:34:26.360 |
Build yourself a teepee and live out in the woods. 00:34:29.840 |
When I was traveling around the U.S., I spent a bunch of time talking to a guy who did that. 00:34:33.360 |
He still lived in a teepee in the woods and had for decades. 00:34:36.240 |
Or you can purchase a more modern tent, carry it in your car, strap it on the back of your 00:34:41.200 |
motorcycle, carry it in the back of your bike, and use that. 00:34:45.400 |
The ability to set up a tent, roll out a modern sleeping bag, modern sleeping roll, pad, you 00:34:50.280 |
can be very comfortable and yet not have to pay every night for accommodation. 00:34:55.160 |
And in most of the world, you can find a place to put up a tent. 00:34:59.160 |
Even if you're in the city, in most cities of the world, if you are a traveler and if 00:35:03.560 |
you're traveling in some way that's obvious that you are a traveler such as walking, carrying 00:35:09.320 |
a backpack, riding a bicycle, if you go into a residential neighborhood that has backyards 00:35:15.480 |
and you knock on a door and you explain, "Hi, I'm traveling. 00:35:19.080 |
I'd like to just have a safe place to put up my tent for the night. 00:35:24.280 |
Probably 80% of the time, you'll get a yes answer. 00:35:26.720 |
You'll probably be invited for dinner, beers afterwards, you'll meet a local person, you'll 00:35:30.160 |
probably make a friend, they'll show you everywhere around the world. 00:35:33.720 |
You don't have to spend a lot of money on hotels. 00:35:38.240 |
If you're traveling in a vehicle, I've done several shows on living in your car and loving 00:35:42.120 |
It's a great option, can be extremely comfortable, is well worth considering. 00:35:48.360 |
The website and other associated websites that you can use to stay with people who want 00:35:56.800 |
You can do this through one of the websites all around the world, that Canrush couple. 00:36:01.000 |
One of the things they did is on their over two years of traveling, they said they paid 00:36:07.180 |
The rest of the time, they were couch surfing, using the website, staying with hosts all 00:36:15.000 |
Again, for one or two people, can work out really well. 00:36:17.800 |
If you are five or six people, it's going to be a little bit more challenging, but couch 00:36:24.760 |
You can consider some kind of work stay arrangement. 00:36:30.120 |
In the United States and Canada, there's work camping. 00:36:32.640 |
If you have an RV where you go and you're given a place to park your RV in exchange 00:36:38.280 |
There is the woofing community, worldwide opportunities on organic farms, to volunteer 00:36:45.280 |
You can go and be a woofer and you stay with a farmer and you, in exchange for room and 00:36:49.240 |
board, you volunteer some hours of your day as labor. 00:36:52.900 |
If you are open to volunteerism, you can do volunteerism and go and stay with many places. 00:36:59.020 |
If you will work, generally a part-time opportunity, you'll go and work with them. 00:37:04.600 |
Then you can have room and board provided for you because of your volunteer activities. 00:37:10.700 |
Volunteerism is a tremendous way for you to travel the world because it provides some 00:37:15.580 |
of the needs of the traveling that many people don't think about. 00:37:20.780 |
It gives you an opportunity to do something useful. 00:37:23.960 |
You feel like you're having an impact on something probably that's important to you. 00:37:28.360 |
But working in some of these arrangements is usually done on a very reasonable schedule, 00:37:33.400 |
half a day, three quarters of a day, leaving time free for other things. 00:37:37.720 |
I always enjoy doing fun touristy things more if I've done a good day's work before. 00:37:42.440 |
If you work in the morning and then go to the jump and swim in the waterfall in the 00:37:45.720 |
afternoon, I enjoy that usually a little bit more because it feels like a reward for work 00:37:49.920 |
done than if you just spend the whole day swimming in the waterfall. 00:37:53.400 |
Your mileage may vary, but that's a little bit of my opinion. 00:37:56.680 |
Also, when you're volunteering, you're usually going to have a built-in community. 00:38:02.080 |
One of the biggest challenges of hotels in places where there isn't a hostile culture, 00:38:07.480 |
etc., is in hotels, everybody does their own thing. 00:38:18.440 |
You have people in the community that you're interacting with. 00:38:20.440 |
It opens up relationships and can result in a much more meaningful travel opportunity 00:38:26.640 |
than just simply going through and staying at the hotel and buying the package sightseeing 00:38:32.960 |
I would be remiss if I didn't point out hostels here. 00:38:37.200 |
Hostels do certainly allow you to save money, sleep less expensively, $10 to $30 a night 00:38:42.200 |
depending on the city versus much more for hotels generally. 00:38:46.300 |
My favorite thing about hostels is the community. 00:38:48.400 |
In a hostel, generally there's a place for people to hang out. 00:38:54.000 |
It's very easy to meet people and a little easier than meeting people in a hotel. 00:38:59.200 |
There are cooking facilities also which allows us to defray costs on food which is our next 00:39:08.520 |
You can go from free to very inexpensive to as expensive as you want. 00:39:14.640 |
Probably your best solution would be to put together some of these things as strategies 00:39:19.920 |
If you travel with a small tent, then you know, "Hey, if I can't find any place to 00:39:27.200 |
If you are additionally couch surfing or volunteering but you have the tent as a backup plan and 00:39:31.400 |
you also have money to go to a hostel if you need to, that's a really good strategy to 00:39:35.720 |
have a diversity of options so that as you go into different places, you can try different 00:39:45.120 |
Food will for many people be after transportation and lodging will be the next biggest category 00:39:54.360 |
Here think about what resources you have and what kind of food experiences you want to 00:40:01.440 |
There are many people for whom gastronomy is the most important thing of a trip. 00:40:08.120 |
They plan their trip around their eating experiences. 00:40:13.240 |
Some people food is less important and there are other aspects of travel that are more 00:40:19.920 |
Food can be and generally is very inexpensive if you, number one, eat like a local and number 00:40:28.720 |
two, you do the cooking from scratch, from basic ingredients. 00:40:34.500 |
If you change any of those things, then food starts to be more expensive. 00:40:37.840 |
If you eat imported foods and you don't eat like a local, then you're generally going 00:40:43.680 |
to start paying more money and then number two, if you are paying someone else to cook 00:40:48.480 |
for you or if you are cooking not from just the basic ingredients that you can find in 00:40:53.880 |
the local market, food can generally be fairly expensive. 00:40:58.360 |
So you would have to decide what is important to you. 00:41:03.280 |
Back to the inspirational story from the Canrush couple. 00:41:07.120 |
For two years, they spent a total of $1,736 on groceries and they spent a total of $844 00:41:16.520 |
on restaurants for a couple of two and they ate while they traveled the world. 00:41:21.900 |
So you can spend only a few thousand dollars but you're going to need to be prepared to 00:41:28.320 |
What most people will choose to do is to generally cook for themselves, generally eat local foods 00:41:34.720 |
and then plan their restaurant experiences for a time when they get maximum value for 00:41:42.680 |
I will point out you also need some cooking equipment. 00:41:45.800 |
One of the best things about hostels, if you stay in hostels, is you generally have the 00:41:50.120 |
opportunity to use the cooking facilities, the sink, the stove, etc. and there's usually 00:42:00.020 |
You may also just simply carry your own equipment. 00:42:02.080 |
If you are traveling in your car, you'll probably have room for more elaborate equipment. 00:42:06.800 |
Might bring your own stove, might bring your own appliances. 00:42:08.920 |
If you're traveling with a backpack, you might just simply need to travel with a small amount 00:42:14.200 |
Most backpackers who are doing extended travel but just going with what they carry, they'll 00:42:18.640 |
have a small cooking kit, small pot, maybe a cup, usually something like an immersion 00:42:24.080 |
heater, maybe a small stove that they carry with them to allow them to cook even if there's 00:42:29.000 |
not cooking facilities available in their hostel. 00:42:32.200 |
Back in episode 518, I did a show called Tools, Tips, and Techniques for Cooking on the Road 00:42:38.000 |
That one would be useful mainly focused on car travel, US-American travel where you have 00:42:44.320 |
I suggested some solutions like traveling with electric pressure cookers such as an 00:42:49.240 |
You can do most of the things you need with those two tools. 00:42:54.400 |
So food is something that you will have to decide on. 00:42:58.800 |
The good thing is in Western countries, food at restaurants is going to be more expensive. 00:43:04.680 |
When I'm in Western countries, I would tend to do more cooking than eating out because 00:43:10.660 |
You go to more third world countries, developing countries, generally food in restaurants is 00:43:17.320 |
And so personally, I choose to eat out more and enjoy the eating out experience in many 00:43:25.160 |
Now in many ways, we need different words to describe different things. 00:43:29.640 |
In thinking about this, I think a word like travel is different from a word like tourism. 00:43:37.120 |
Just simply that you can travel without doing any tourist things and tourism doesn't necessarily 00:43:44.440 |
So the best thing to do here is to get a concept of what you like, what entertains you, what 00:43:51.360 |
If you're the kind of person who enjoys the act of traveling, act of moving from one place 00:43:55.960 |
to another, interacting with locals, being a part of the local culture, you could do 00:44:03.000 |
If you're the kind of person who really values the tourist focused activities, the rides, 00:44:08.560 |
the attractions, the things that you have to buy tickets for, you're going to wind up 00:44:15.940 |
Now not necessarily will that be cost prohibitive. 00:44:20.160 |
Many tourist activities are expensive and they're especially expensive if you're on 00:44:25.200 |
Then you have to pay a lot to fit them in, but they don't necessarily have to be, especially 00:44:30.520 |
This comes back to the amount of time that you have. 00:44:33.120 |
If you're on a 10 day trip to see every site, you're not going to have time to cook. 00:44:38.400 |
You're not going to have, so you're going to be eating out two, three meals a day. 00:44:43.240 |
Then you're also going to have to fit in a lot of things. 00:44:45.280 |
You might be paying for a museum entrance in the morning, paying for an attraction in 00:44:48.760 |
the afternoon, hiring a tour guide, hiring transportation, et cetera, to get you from 00:44:54.200 |
A short term trip, the way that most of us do in the vacation model, usually costs quite 00:45:00.080 |
If you're in the more longer term travel model, you can cut down those expenses because you 00:45:05.700 |
One day your entertainment is walk around the town and you spend your entertainment 00:45:13.000 |
The next day you cook for yourself, but you spend your entertainment money on a tourist 00:45:17.000 |
activity or a ticket entrance fee, something like that. 00:45:22.720 |
I would encourage you, consider what you actually care about, what you actually want to do. 00:45:28.680 |
Simple example, many people throughout the world save for years and plan to go to an 00:45:48.240 |
By being clear on that, when I get opportunities and invitations to go to Disney, unless I'm 00:45:53.040 |
going with somebody who's got the family hookup and gets me in and says, "Let's go and eat 00:45:57.420 |
around the world at Epcot," there's just not any point to going. 00:46:05.880 |
Don't think that just because everyone else in the world wants to go to Disney that you 00:46:09.600 |
I have other things that I like that other people don't like. 00:46:13.760 |
Consider what's important to you and then think about how that will fit in. 00:46:19.040 |
Other aspects of traveling are probably fairly minor. 00:46:23.200 |
You will need, for example, a travel document. 00:46:25.680 |
You'll probably need visas if you're going to go to interesting places. 00:46:29.280 |
Depending on the strength of your passport in terms of the number of visa-free countries 00:46:32.000 |
you can go to, depending on the places that you care to go, you may be spending some significant 00:46:38.920 |
Let me go run down, as I close the show, let me run down the costs that this particular 00:46:59.080 |
In traveling the United States, they planned to buy a car. 00:47:02.640 |
That really is one of the best ways to travel around the United States. 00:47:06.040 |
I've met lots of people, Australians and Europeans in the United States. 00:47:09.360 |
They fly in, buy a car, use it for a few months traveling around the United States, and then 00:47:16.800 |
Met a great Australian couple when I was out in Arizona who was doing that. 00:47:23.320 |
They flew into Canada because it was easier for them to buy a car in Canada, bought an 00:47:26.840 |
older Chevy Astro van, converted it in a day or two to be a camping van that they were 00:47:31.640 |
sleeping in, and then used that and traveled around the United States for several months 00:47:35.180 |
with a plan of selling the van at the end of the trip. 00:47:37.560 |
We're having a really great experience with their DIY camper van. 00:47:42.360 |
In this case, the couple spent $3,221 on cars. 00:47:45.920 |
They had some bad experiences where they bought a car, broke down, fixed it, and got rid of 00:47:51.320 |
Then they bought another car, broke down, fixed it. 00:47:52.640 |
Finally, they gave up and just started renting cars instead. 00:47:58.880 |
Then flights, $2,300 for two years of flights, mainly intercontinental flights. 00:48:04.160 |
They chose when they would cross continents by choosing when the flights were less expensive 00:48:09.120 |
and the specific flights that were less expensive. 00:48:18.200 |
Then they spent about $1,200 on visas, visa fees for them. 00:48:23.360 |
In their case, they were traveling on a Canadian and a Russian passport, so they had to get 00:48:26.560 |
some various visa fees to get into the different countries. 00:48:35.080 |
Some fees, generally most countries will charge you some amount of money to come in. 00:48:41.920 |
Just research that based upon the countries that you look at. 00:48:46.640 |
$845 on restaurants over the course of two years. 00:48:50.320 |
Transportation, buses, local transportation, et cetera, not including flights, was $784. 00:48:56.280 |
Category of other for $407, $361 of gifts, $266 of cell service. 00:49:01.920 |
Even some miscellaneous stuff, $250 on electronics. 00:49:04.400 |
They spent $154 on entertainment, some money on clothing, et cetera, smaller numbers for 00:49:09.400 |
total expenses of $13,431 to travel the world for 752 days. 00:49:21.880 |
Don't take any idea that you don't like of what I've said and think that you have to 00:49:27.200 |
Think for yourself about what's important to you. 00:49:34.040 |
But if you want to travel, don't let money, don't let these things stand in your way. 00:49:40.320 |
You do have opportunities to make a lot of, to go. 00:49:47.680 |
It's only a lack of imagination and a lack of skill that would ever lead someone to have 00:49:52.560 |
money being the number one reason why I can't travel. 00:49:57.400 |
You might choose to say, "I'm choosing not to travel right now because I'm saving money 00:50:01.540 |
or I'm waiting for this specific type of travel that I want to do. 00:50:05.280 |
I really want to travel in my own four-wheel drive vehicle. 00:50:09.520 |
But don't let money in and of itself be an excuse as to why you say, "I can't travel." 00:50:16.980 |
You just have to figure out how to adjust the details to your budget. 00:50:22.400 |
I guess the best thing for me to plug for you today would be my course, which is not 00:50:30.640 |
The course is called How to Survive and Thrive During the Coming Economic Crisis. 00:50:39.520 |
Originally when I was thinking about writing that course, I had a working title called 00:50:43.320 |
something like basically bugging out of the economic crisis. 00:50:47.040 |
The idea being if things are bad where you live, if you're in an economic crisis, one 00:50:51.000 |
of the best things to do is just leave and go somewhere where things aren't bad. 00:50:54.320 |
It's a very simple concept but it's under discussed in my opinion. 00:50:58.000 |
If things are bad where you live, just leave and go where things aren't bad until things 00:51:02.160 |
get better and then if you want to come back, come back. 00:51:04.680 |
But in order to do that, you've got to have some comfort and familiarity with travel. 00:51:08.280 |
Most people have so little comfort and so little familiarity with travel that they can't 00:51:21.120 |
Having practiced, I know that my family and I, if things went bad, we would pack up eight 00:51:29.840 |
We would get flights to the other side of the world where things are better. 00:51:33.840 |
I'd rent a house and get us settled for a few months until I found something that we 00:51:38.480 |
wanted to be for longer and we would be very happy living somewhere else while things are 00:51:46.560 |
It takes some and the best way to practice is just through vacation trips, just through 00:51:51.640 |
So in that show or in that course, in addition to all the ways of how to survive and thrive 00:51:56.360 |
in an economic crisis by staying put and how making sure you simply avoid the crisis in 00:52:00.200 |
the first place, I have an extensive discussion on traveling including a lot of international 00:52:08.760 |
Probably more proud of it than anything I've produced thus far. 00:52:11.080 |
I've got more up my sleeve but I'm really proud of that one. 00:52:13.680 |
So go to RadicalPersonalFinance.com/store and try out the How to Survive and Thrive