Do you want to pay off debt while traveling? It might sound like having your cake and eating it, too, but here’s how you can make it possible.
Like what you see? Share this to Pinterest!
Five years ago, I was 23. I had just graduated with a dual major in Marketing and International Business. I was about to spend 6 months traveling before going to work, had about $35k in student loans, and needed to buy a car. Yikes.
Oh, I was so proud of my first car though!
Three years after graduation, I was able to pay off all my debt while traveling to over 20 countries. Here’s how:
In this article, I will cover:
How I wrapped my head around my debt
The plans I developed to pay it off
How I learned to pay off debt while traveling
How I continue to travel on a budget
Let me start by saying this: my first salary out of school was $36k a year in Rhode Island. I’m not independently wealthy, but I am incredibly disciplined.
6 months out of school, I bought a $13k car and both my car and student loans were gaining interest. So your first question probably is, ‘How the heck did you crush $50k (let’s say $55k including interest) in 3 years with that salary? Here are the building blocks to how:
I made larger than necessary payments:
I was working in sales and received monthly bonuses until I took my first promotion and was on quarterly bonuses thereafter.
With my salary, I made $50 more than the minimum payment on my two major debts.
In practice, my car payment was $197. I paid $250 on autopay each month. My student loan payment was around $300. I paid $350 automatically each month. Then, whenever I received more than my regular paycheck, I put the difference toward my highest-interest loan. My monthly debt payments totaled $600.
That extra $50 per loan would have helped me pay off my car in 4 years instead of 5, and my student loans in about 8 years instead of 10. I also decreased the amount of interest I was paying on the loans by making larger principal contributions. I knew that even if there was a month that I didn’t get to make a big payment toward my debt, I was at least moving towards the ‘debt-free date’ faster than if I were making minimum payments.
I made lump-sum payments to pay off debt while traveling:
I was in sales, so I received bonuses of anywhere from $40 to $700 a month my first year working, and anywhere from $2000 to $3000 per quarter the following year. At first, 100% of every bonus was going to debt payments, but I realized that I also needed to treat myself, so eventually, I changed it to 70% to debt and 30% to things like plane tickets and fun!
The math: $2000/quarter = $8000/year towards debt means an additional $16,000 in my first two years. This brought down the principal from about $55k to about $39k. Remember, I was also making monthly payments that equated to about $7200/year, so the principal balance after year two would have been around $25k.
In San Juan del Sur, Nicaragua in 2016
Tax Return
I was fortunate that I got a pretty sizeable tax return each year. I took 60% for debt payment and 40% for fun and even put a down payment on my first home. I put probably $5k of tax returns to my student loans in that first couple of years, so my balance was then around $20k.
Moving Bonus
I was paid to move to Rhode Island by my company and that helped to put a down payment on my car as well as to throw an extra grand toward my debt. =$24k
What about year 3?
Great question. I took a new job about 2 years after I started working. I repeated the same process as the years previous with applying my tax return and moving bonus to my debt. My tax return was higher that year because I had purchased a home in year 2. I also had a decent year-end bonus, so I started year 3 with about $19k left to pay off.
Here’s Where it Gets Wild
I took a salary increase and upped the monthly contribution.
I paid off my car and was making the full $700 monthly payment to just my student loans (snowball method).
I would look at things that I wanted and could buy, and would then not purchase them and put that amount toward my debt instead.
Every month, I paid off my credit cards in full. Any money that was leftover would go toward my debt (Called the $0 balance method).
I was obsessive. One month, I made 12 small transactions into my student loan account IN ADDITION TO my monthly payment. The lowest amount was $12, the highest was about $100.
To this last point, I was INSANE about my money. I realized in April that I could possibly have my loans paid off by June, which would be 3 years after starting my first job/buying my car, and 3.5 years from graduation.
On June 30, 2018, I put about $1200 from my savings account into my student loans and paid off the final balance. I left myself with less than a couple hundred dollars in savings. This is perhaps one of the proudest moments of my life.
And then I had to start building up my savings again.
Now let’s look at the money I saved:
We can all save money in different ways, and most people have the option to save. Often, we choose not to for the sake of comfort.
Our chickens laid the prettiest eggs! And look at the farmcat’s little toe bean prints.
In Rhode Island, I lived outside of town and shared a house with two other people. We had a big backyard, raised chickens, and I got to keep a garden for the first time. I failed, but activities like that kept me from going out and spending a bunch of money.
I packed my lunch most days. I found ways to get super frugal by using the chickens’ eggs for meals and even sold the eggs to help pay for their food!
I generally live a frugal lifestyle. I had a small closet, so I didn’t need to fill it with a bunch of stuff. I don’t really shop, and rent books on my kindle. I can’t really pontificate here because it’s just second nature.
I put at least $40 of each paycheck into a travel fund that I could use to travel at least twice a year
I made my spending work for me rather than against me:
I took out 3 credit cards in my first 3 years out of school: Chase Sapphire Preferred, Southwest, and Delta Amex. I knew that I would spend a bunch of money when I moved out East, so I chose the Chase card for the signup bonus and free first year. I repeated this process with each card and spent as I usually would so that I could get hundreds of dollars in flight rewards. I paid every card in full every month.
Those flight rewards came in handy – which brings us to talking about TRAVEL. How the heck did I manage to pay off debt while traveling to 25 countries in those 3 years?
Let’s talk about travel – it’s expensive!
Yes and no.
A lot of the time, getting somewhere is half the cost of travel, and I nearly eliminated that by using my flight rewards.
It is my goal to visit every country, so I wasn’t really picky about where I went and typically chose wherever the cheapest flights and destinations were, which made it a lot easier.
I also believe that being frugal while traveling enhances the experience by bringing travelers closer to the culture that they are visiting. Read more on that whole concept here.
Travel to me meant staying with friends, meeting people along the way, and doing road trips in foreign countries. I had incredible adventures that I’ve shared on the blog over the years. These adventures decreased the cost significantly.
I also wrote a guide about how I planned vacations that cost less than $1000 including flights.
Photo from Cuba in 2018, taken of the courtyard of a hostel.
20 is a lot. What were they?
(Side note: Maximize your PTO) Each of these stories are linked for more details:
I took a road trip over Thanksgiving 2016 where I landed in Budapest and traveled through Slovenia, Croatia, Bosnia and Herzegovina, and Serbia.
I took a two-week trip between my first and second job and flew round trip to Copenhagen. I visited Sweden as well and flew to Poland while there for a long weekend. In that same three-week gap, I popped up to Montreal with my aunt for my first visit to Canada. Both of those stories are buried here.
Additionally, I took a gap in Brazil after college.
I’m at 50 countries now.
Since becoming debt-free, I’ve visited The Netherlands, Belgium, France, Jamaica, Spain, Andorra, Portugal, the Bahamas, Panama, Lebanon, Cyprus, TRNC, Qatar, Malaysia, Singapore, Vietnam, Cambodia, Thailand, and Hong Kong.
And I’m not slowing down any time soon!
Thanks for joining me on the journey to all 196!
Was this explanation helpful? Did I leave any questions unanswered? Let me know below!
*EDIT 4/11/20: I was in a podcast where I discuss how to save money while traveling. Check it out here.*
Every year, it is my goal to read 24 books or two books a month. This year, I read 25, and have some suggestions for you!
I read some great books and some that truly made me cringe. Read on for what I recommend as you create your 2020 reading list, and scroll to the bottom for the ones that you can give as gifts to people you hate.
Did this list inspire you? Share it on Pinterest!
If you make a purchase through these links, I will earn a commission at no extra cost to you. Thanks!
My Top 5: Books that changed the way I see things
Book of Joy– Written based on a five-day conversation by the Dalai Lama and Archbishop Desmond Tutu, this should be required reading for the beginning of every new year.
Great Believers – I laughed along with these characters and cried openly as I finished it. Based in Chicago in 1985 with a little back-and-forth with modern Paris, this book brought to light an entire era that changed the way I see ‘pride’.
Behold the Dreamers– Written from the perspective of a Cameroonian in New York City, the author built a bridge between white Americans and immigrants in a readable, inspiring way.
Happy Pocket Full of Money – More required reading for anyone who has a conflicted relationship with money, especially entrepreneurs.
The Hate U Give – This was my first ‘can’t put it down’ book of the year. This gave a perspective into what it’s like to grow up between several cultures in America and was WAY better than the movie.
Honorable Mentions:
Where the Crawdads Sing – This was probably on everyone else’s top 5 lists this year, and it was a story that kept me captivated until the end.
Mummy Come Home – This book was gifted to me in Malaysia, and while it was a good read, it was dark. Trigger warnings all around, but it was well written and certainly eye-opening to the ‘other side’ of travel. (Other side being those who do not choose to travel, but are forced out of their homes and into dangerous situations)
Language of Miracles– Another perspective on living as an immigrant in America, this time from the perspective of a kid born to immigrant parents who only want the best for their family, and how he struggles to find his place between his parent’s beliefs and his own experience.
Beach Reads:
A good bunch of these came from a weird Harlan Coben streak that happened while I was in Southeast Asia. I’m a sucker for a psych thriller!
In a Deep, Dark Wood – Written by the same author as Woman in Cabin 10, another ‘girl dies, who did it’ that you should DEFINITELY read before it becomes a movie next year.
Girls of Glass – A little girl dies… who did it? This time with a hint of ‘Florida Man’ and southern corruption.
What You Did– Trigger warning, a girl is raped. Who did it?
The Harlan Coben Novels:
All that you need to know is that they’re all the same. Cops, FBI, murder, someone got framed… but they’re so good.
Unqualified– Sure, Anna Faris counts as a development book! Funny, quick read. Probably perfect if you’re in college and looking for cheap inspiration.
Happiness Advantage – Gift this one to your boss, or your young professional friends. Or your old professional friends. Or yourself.
Girl, Wash Your Face – The Rachel Hollis classic. She’s no psychologist, but she did, in fact, get me to wash my face.
Ten Years a Nomad – Written by the OG of travel blogging, this book is a really long story about how he didn’t find a wife out on the road… and other lessons within that. The lessons were great, but he really seemed to need to let readers know that he is straight and got laid at least a few times in 10 years.
Bottom of the Barrel: Books that I only read because they were what was available in English at my hostel.
If you choose to read any of these, I’m judging you.
THE MORE YOU SPEND, THE FEWER PEOPLE YOU MEET AND YOU’LL ENCOUNTER LESS CULTURE.
Or at least, this is what I wrote in a post back in 2016. This post is a cut-paste-edit of what I wrote back then, based on how my beliefs have changed ever so slightly.
If you like what you’re reading, share it on Pinterest!
In summation, what I believe is this: If we spend money on things that make our lives easier, it impedes our opportunities for connection.
Let’s look at two extremes to illustrate my point.
Situation A: You fly first class to Paris and don’t see your plane neighbors ($5800RT). You take a private car or Uber ($100) from the airport to your hotel and have a professional driver, but you paid for data on your phone ($10) and do not engage in conversation anyway. Upon arrival at the international hotel chain($400/night) that you have points at, the concierge, check-in desk, and bellhops all speak English. You get to your room, relax in a private bath, and venture out to a restaurant($100/pp) that the concierge recommends, and finish off the night with a glass of wine from the hotel bar ($15). You eat out for 3 meals a day at an average of $150/day.=$9655 , not including museums, shopping, other meals, etc.
Situation B: Flying coach on a budget airline isn’t anyone’s cup of tea; if you’re lucky, the middle seat is open ($400). After plummeting through the air with 200 of your best stranger friends, you arrive at a crowded airport, make your way to the bus lines, and drop a few coins in the machine for an RER ticket ($12). 45 minutes later, you’ve seen the ‘real’ parts of the city you arrived in and walk the rest of the way to your hostel ($20). The people in the lobby are playing cards and pulling together supplies for supper. You stop by the grocery store down the street to contribute to this version of Stone Soup($10). Go back to the hostel, make dinner, and all share a 6 pack of 1604 ($5) while telling travel stories and making plans to do a self-guided walking tour the next day. You eat street food or cook three times a day with friends for an average of $30/day. =$867
Plane ticket, Transport, Lodging, Food, Drink. I’m nobody to say who had a richer experience, but I think that my opinion on which situation encountered more of the local vibe is clear.
A personal point:
I traveled to 3 central American countries in March of 2016 and including plane ticket spent about $1000 in 9 days. I traveled to 5 eastern European countries in November 2015 and including plane and car rental spent less than $1300. I traveled to three other Central American countries for 10 days in November of 2017 and spent less than $1200. That’s an average of less than $300 per country including plane tickets.
Now, here’s the flip side.
There are experiences that money CAN buy. Learning to dive was a bucket list experience for me, and I spent hundreds of dollars a day doing it in Thailand. However, the friends I made there were all staying in a hostel bedroom for $10 a night.
I travel to meet people, and to fall in love with places. People help me to fall in love. I want to stay in cheap lodging and have dodgy train experiences, and to eat the street food that the locals do.
I also want to be safe. I don’t eat from the gutter for the sake of saving money. I take private cars and Ubers at night so that I’m not out alone (especially in the US). I typically buy SIM cards so that I can call someone if I am lost.
What I’m saying is
We travel how we choose to, but a week in Paris doesn’t have to cost $10,000. It could be just as fun spending less than a grand.
And also… you probably CAN afford to travel more.
Like what you read today? Share it with this image on Pinterest!
If you’ve ever wondered how to use your phone in a different country, then this is the article for you. When choosing the best phone plan, you have a few options to protect yourself from an outrageous phone bill while overseas.
The way I see it, there are three options: read on to see which option is best for you to use your phone while abroad.
Traveling soon? Save this post to a Pinterest board!
Before I jump into the three options, there’s two important things you should keep in mind:
Permitting that you turn off ‘cellular data’ and turn on ‘airplane mode’ and ‘wifi’, your phone will work as a tablet while traveling. You can make calls, send iMessages, and use your apps while on WiFi and not incur charges.
You can download languages in your Google Translate App, currencies in your currency converter apps, and even download maps to use offline in Google Maps. Using these few things offline have helped me to avoid paying for data or SIM cards abroad
What is the best way to use your phone in a different country?
Okay, now on to the three phone options while you travel:
Same Phone, New Plan
Who it’s best for: Short-term travelers who want to use their phone freely in another country. What it is: It means that the user keeps their same phone and either purchases a new plan for their phone or changes the SIM card in their phone to one from the country they are in. What it costs: A new SIM card costs a few dollars in most countries. Sometimes they come free with the purchase of data. Data has cost me anywhere from $14 for a month of unlimited data in Thailand to $50 for a month of unlimited data in the EU. Other notes: I think this is the best option for most people, but feel free to prove me wrong!
New Phone, New Plan
Who it’s best for: I only recommend this for people who are expatriating to a different country but plan to come back to the US. This could also be a good option for students going on a study abroad program. This is only a good option if the new plan has an option to get out of the contract upon return to the US or the person wants to stay with the provider after they return. What it is: This option requires the user to have a phone that is on a network that is available internationally but is based in the US. This includes contract-based carriers such as Google Fi and T-Mobile. What it costs: Google Fi costs either $50/month or $17/month plus any data used. T-Mobile costs $43/month on autopay. Other Notes: Google FI has a promotion on new phones when you start a plan with the provider. This brings down the cost of the phone by 40-60%.
Same Phone, Same Plan
Who it’s best for: Short term travelers that do not want to worry about changing SIM cards or plans and plan on using their phones for ‘the basics’ while traveling. This might include a quick glance at a map, but not streaming or being in constant contact back home. What it is: Users go to their provider at home and let them know that they’ll be traveling. The company then adds an international plan to your phone. Typically, users will just be changed for the days that they use their international calls, texts, and data. What it costs: This option is $10/day through Verizon, and has similar rates to other carriers. Other notes: This option typically has some restrictions to how much data can be used. You’ll incur some significant charges if you go too far over your allotment.
I’m speaking from my experience here. Feel free to fact check me or tell me how you circumnavigated the ‘phone thing’ while traveling in the comments!
2020, the year of the dad joke. Ah yes, as early as 2017, dads in businesses everywhere started calling their 3-year plans ‘Vision 2020’. Dad jokes aside, January 1st marks the beginning of an entire decade, and it’s a perfect time to start living the vision we have for ourselves.
Like what you’ve read? Share it on Pinterest!
While I live in a travel mindset, living your goals could look a lot of different ways. It’s easy to dream about all the places you want to travel, but let’s talk about really planning how 2020 will be the year during which you travel.
Jefferson, TX was a great weekend getaway!
Let’s talk do’s and don’ts when planning travel, especially as a professional:
Do:
Leverage holidays – One of my favorite posts is an argument for traveling during Thanksgiving. What you need to know is that you can use holidays and your floating holidays and combine them with PTO to turn them into week-long vacations. For example, MLK day is on a Monday. You could fly out on a Friday, take 4 days of PTO and return the following Sunday and have taken 9 full days elsewhere.
Say ‘no’ to other people – I’m 28, which means that I’m in 3 weddings next summer and am invited to more. As a nomad, I am choosing to come back to the US for those weddings, but I realize not everyone has that luxury. It is tough, but if you want your time off to be your own, decide early which events you will be saying ‘no’ to in 2020.
Say ‘yes’ to other people – On the flip side of that coin, decide which events you will be saying ‘yes’ to this year. Is there a wedding in Punta Cana that you can go to, and extend for a vacation for a few days? A work conference in Florida could mean you have easy access to cruises.
A long weekend Labor-Day trip to Belize a few years ago. 5 days away with only 1 day of PTO!
Don’t:
Travel during other people’s holidays – What I mean by this is, there are events during which people travel frequently and it causes flight and hotel prices to skyrocket. For example, spring break in Mexico. If you want to visit Mexico, you may want to save money and maximize your time there by going during the other months. Same thing with Central Europe; it can be crowded and pricey during the summer.
Do it for the ‘gram – When was the last time that a photo made you joyful? The answer might be ‘never’. If that is the case, then do not travel to places just because they will be good for one Instagram shot, or because you’ll get lots of likes on Facebook. Additionally, these places are typically over touristed and have little else to offer than the ‘Instagram spot’. Instead, go to places that you love, and take great photos while there.
Be rigid to your dreams – If your dream vacation to Rome isn’t in the cards this year, that’s okay! Keep saving money, and perhaps choose a destination that is more accessible for you. Taking steps toward your travel goals is more important than checking every place off your list!
