When i hear a word "budget", it reminds me of business and economic studies. But now we aren't speaking of companies budgeting. We are speaking about our own budgeting, so clearly expressed from that how much we have money and how much we are spending it.
So, from where you start to build up your budget?
How long trip are you going to make? Are you going to be on a trip for two weeks, two months or even half a year? The length of the journey pretty much defines how much money you need.
Which kind of way of travelling are you used to? Is your minimum requirement full board accommodation or will you choose the cheapest hostel or do you prefer something between those? Be honest while evaluating your way of travelling. Also think what do you want to do on your travels. Are you going to visit in many chargeable sights or do you have plans for doing many activities?
How much money do you averagely spend at home a day/ a week/ a month? Calculate your own average expenditure at home and try to relate it to the price level of the country your visiting. If you have no idea how much money you spend averagely, now is the time to find it out. List up all that you buy in next few months. Easy. This is a good exercise. It's a lot easier to make a budget to your trip if you already make a habit for monitoring your expenditure.
Well, we should take us for an example in here:
So we are aiming to travel as long as we can, but at least a year. We are saving up funds for a first six months in advance, and after that we are going to head to Australia to work and make more money. First six months we are backpacking through the Asia, where the price level is much lower than in Europe. We are going to stay nights mostly in the cheapest hostels and we prefer eating the cheap street food. Though we both exercise actively, so we do eat a lot and often. We aim at travelling with low budget, but we are also going to see and experience a lot. We don't have a rush on anywhere, so we also prefer cheaper and slower ways to travel.
The biggest expenditures are accommodation and food. We estimated how much we are ready to pay for an accommodation for a night. We aim at 20 euros for a night of both of us in total. This would be 600 euros for a month. Of course we have a plan to get under this price a lot, but I like to calculate budgets according to the upper limit.
We would say that the food would take roughly a 10 to 15 euros/ per day/ per person, which would mean a 600-900 euros for a month in total. This sounds like a lot, but here is that we are going to eat out most of the time and I again emphasize to calculate according that upper limit.
So according to this calculation the accommodation and food would be 1200-1500 euros for a month in total. Just by that the accommodation and food would cost a 1500 euros for month, that would mean a 50 euros budget for two persons for a day. Well that's pretty high day budget in Asia. Nevertheless we continue with that.
We try to keep the travel expenses low, but we are going to spend money on activities. We didn't pull up this amount randomly out off a hat. We did calculate approximately how much we would spend money to these activities and ways of transfer, but i'm not going to clear it up in here, because then I would have to reveal our plans about the things we are going to do while travel. And i'm not going to do that.
So i'm just clumsily going to hop on this ending result of our calculates, which are saying that we did calculate 75 euros day budget to ourselves, which includes accommodation, food and transferring, so all. With this day budget the budget for a month would be 2250 euros, which means 13 500 euros for a six months. To this amount you should add extra hundreds, even extra thousands if possible. Unexpected things happen always, so you should prepare for that. While travelling we are really going to see how accurate our calculates was, and if those was really wrong, then we can calculate a new budget.
When you have calculated your need of money, then you just have to collect that money somehow. Easy, isn't it? To someone it is, to someone it's not. Are you good at saving up?