How much will your world tour cost? How much money will you have to save for this? And what will be the biggest expenses and how can you save money? In this article I will explain you everything to calculate the budget of a world tour.
Wrong beliefs about the budget of a world tour
Often we think that the cost of a world tour will be very high and this trip is only for a special elite class…
But the truth is that every traveler has a different budget, because everyone’s desires and comfort level are different (as this diversity has been shown in the article “A world tour, seven possibilities”). But you don’t need to win a lottery to tour the world!
I myself am a witness to this fact because I traveled the world for almost 15 months after completing college. And I only saved money on a small salary for a few years. If you choose independent travel, it is possible to travel the world even with very little money.
The simplest and most economical way to travel the world is the “backpacker” type trip. Its basic principle is that the less intermediaries you travel with, the better. This is completely different from the classic travel offers that we see on the web or in travel agencies.
There is no point in comparing the price of an all-inclusive luxury holiday and an independent world tour. These are two completely different types of travel, and their budgets are also completely different.
Backpacker” budget is the cheapest
If you want to travel in a simple and economical way, then you fall into the most common category: backpacker world travelers.
I have also traveled in this way, taking a backpack and going on an adventure… The idea is to be mobile and independent there, so that you can adapt to different constraints. This is the method that helps to save the most time, and I will explain why:
Simple but effective equipment
When you take a backpack and go on an adventure, you cannot take unnecessary things. That is why you have to seek to travel light and only with useful things You have to take suitable clothes, toiletry bag, and electronic equipment, these make up 90% of your bag. You can buy the rest of the things on the way. You can find everything in any corner of the world!
Local transportation
Independent travel means using local public transportation. Forget private shuttle services or taxis, because public transportation is very economical. You can find buses all over the world, and you can also cross countries or borders by taking some long journeys. Boats are also available, and if you want, you can even hitchhike.
Cheap accommodation
Guesthouse” type accommodation is ideal for backpackers. These are small hotels that are run by locals, and their rates are very affordable (a few euros per night). Comfort is more than acceptable, and there are no shortcomings with this type of establishment. These are not always visible on the Internet, and the price can be negotiated directly there.
Local food
If you eat like the locals, you can save a lot of money. And it’s more interesting than eating at a standardized restaurant, as you can discover the country’s gastronomy. So focus on authenticity, buying picnic items from street “bouis-bouis” and local supermarkets…
By travelling in this way, you can fully enjoy local life while spending as little money as possible. Travelling by bus or eating in street restaurants are not sacrifices, rather these are small daily actions that make this great trip a unique and unforgettable adventure. As I often say, seek to get out of your comfort zone so that you can live your dreams.
The inevitable budget of a world tour
You may want to save a lot of money with your travel style, but it is important to plan some fixed expenses before setting out on a world tour.
Some travelers set out on their adventure without much preparation, but the essentials should not be overlooked. I am specifically talking about vaccinations and travel insurance. Apart from this, you should also take care of the basic equipment that will accompany you throughout the trip.
Get vaccinated
Some vaccines may be recommended, depending on the countries you are planning to travel to (you can check the “world tour vaccines” article and take advice from your doctor). But, overall, very few vaccines are mandatory… Hepatitis A and B are normally up-to-date, and we often get vaccines for typhoid, yellow fever and rabies (if you are travelling to remote areas).
Get insurance
Good travel insurance is very important for going on a world tour. I myself had hesitated before getting insurance, but now I do not regret it. This insurance covers you in case of accidents and also protects your loved ones. Because health expenses are very expensive abroad, often more than in France! To know more about this, you can see my complete travel insurance file.
Buy basic equipment
Basic equipment is important as it will be with you throughout the world tour. So it is better to focus on quality… First of all, a backpack suitable for a world tour and a good pair of hiking shoes. I would also suggest investing in a quality windproof and rainproof jacket. Apart from this, don’t forget to bring a travel toiletry bag, sleeping bag liner and a microfiber towel (as it dries quickly).
The total budget of this list of essentials will be around €1000 per person (€200 for vaccines, €400 for insurance and €400 for equipment). However, this price can change according to your chosen equipment.
Should you buy round-the-world plane tickets?
Some organizations offer specially designed plane tickets for world tours. This is an option, but keep in mind that you will lose your freedom. And it is not necessary that this is the best way to optimize the budget of a world tour.
Buying round-the-world tickets or not is a matter of choice. According to me, I did not plan beforehand which countries I would cross and how long I would stay at each place while setting out on my world tour. So I avoided it and preferred to be completely free.
To take advantage of discounts on round-the-world tickets, you’ll need to book your flights as early as possible. This means you’ll need to decide in advance which countries you’ll visit and set dates. Generally, dates are somewhat modifiable, but the order of destinations cannot be changed. Also, you’ll need to return before the end of the year as round-the-world tickets are only valid for 12 months.
Several specialized agencies, such as Travel Nation or Zip World, offer round-the-world tickets. Prices can start at €1,500 and go up to around €5,000. It all depends on your destinations.
Whether you choose these offers or not, reducing the number of flights is the best way to reduce the transport budget. “Ghumna (travelling) the world” is just an overused term; you can travel for more than a year without going completely round the globe. The most important thing is that you are free to move. Spend more time where you like, and if you feel like it, get out of there quickly.
Differences in world tour budgets by country
The total budget of your world tour will depend a lot on which countries you are planning to visit.
Once you reach there, the cost of living can be very different from one country to another… If you choose a cheaper country like India or Thailand, your budget will be very different from the more expensive countries like the United States or Australia. The difference in standard of living is very big, and this will also affect your total budget of the world tour.
On average, you may have to spend around €20 per day per person in a cheaper country. This amount can be as low as €10/€15 in the cheapest countries (like I spent in Nepal and India). In a country like Australia you would have to count €55 per day per person. If this is added up over several months, the difference becomes huge!
That’s why most world travelers spend more time in other countries. But this does not mean that they cannot complete their world tour with some of their “favorite” countries, even if their prices are high. Again, this is a choice and calculation that you will have to make, everything will depend on your priorities.
According to me, I mostly visited countries in Southeast Asia and South America. So my monthly budget never exceeded €500 per month. This is the amount I could spend every month in my own country in France.
The idea that you are spending less money exploring the world than sitting on your couch, it makes you think…
Don’t forget the visa
Although the visa budget is not a significant expense, it should not be forgotten. The average cost of a visa is around thirty euros. For example, 30€ for Nepal and Laos, 60€ for India, 25€ for Indonesia, and free for Japan or New Zealand.
What is the total budget of a world tour on an average?
As an average figure, a yearly world tour costs around €15,000 per person.
This figure of €15,000 has been established after testimonies from many travellers. Because costs generally vary between €9,000 and €17,000. This will absolutely depend on which countries you have visited and what your travel habits are. Because every spending theme can be strongly impacted by your choices.
Example of a yearly world tour budget
- On-site expenses: €10,000
- Plane tickets: €3,000
- Insurance: €400
- Equipment: €400
- Vaccines & Pharmacy: €200
- Visas: €300
Also know that if you systematically find good deals and are not afraid to put your comfort aside sometimes, you can still travel the world with less money… And if you spend more time at each stop, you can still save a lot of money.
My world tour budget was €13,000 for two people for 15 months!
You may be surprised to hear this figure, but I only visit countries where the cost of living is low. I stay for at least one month in each country I visit and always negotiate my accommodation. Also know that a double room costs no more than a single bed in a dormitory. That’s why some expenses can be shared by traveling in a couple or group…
Apart from this, apart from common daily expenses, you should also have some budget for various visits and original activities. These can have a significant impact on the total budget, but it is not always easy to establish them in advance. So don’t forget to leave a margin of at least 10% in your planned world tour budget.
For me, the list of extraordinary activities that I did around the world grew with the trip and grew in terms of opportunities. Not enjoying yourself even after going so far would be a waste!
Apart from this, don’t forget that there may be some expenses in France during your absence (like storage, taxes, loan repayments, etc.). So don’t go on a world tour to completely use up your savings, it is important to plan for your return as well.
How to save and finance money for your world tour?
If you want to go on a world tour, there is no real secret to it, you have to save money…
Traveling the world is accessible to many people, but it all depends on their priorities… If you are planning to buy a new car, its cost is approximately €15,000, which is the price of a world tour! So if you want to go on an adventure, there is no secret, take a bus or buy a small second-hand car.
The example of the car is just an example to understand that to make your dreams come true you must know how to set priorities! You cannot (unless you have that much money) spend without thinking and plan a world tour together… It is all a matter of choice and determination.
It is possible to fulfil a dream by setting aside money every month. But if you are not ready to make some sacrifices and keep making excuses magically, then maybe this is not your true intention…
According to me, I hear many people say that they do not have the means. But when I see how they are wasting their money, I cannot stop smiling… I have also talked about this in my article “why traveling is not a chance”.
If you are really motivated, then you will stop going out. You will limit shopping and all unnecessary expenses (on the other side of the world, you will only need a backpack and some things). Stop smoking or prepare your own meals instead of buying ready-made meals (this is also good for your health).
When you are about to leave, empty your house and sell everything that you no longer need… I sold everything before leaving my job and apartment, which gave me a chance to recover some money!
You can also earn money by working on the site and extend your trip. A “Working Holiday Visa” legally allows you to work in partner countries for 6 months or a year. After all, discipline and determination is required to go on a world tour.
Now you know what is the average cost of a year’s world tour: €15,000 per person. This price can vary a lot from one traveler to another, depending on the mode of travel. And to complete this article, know that you also have a dedicated page for world tour preparation.