As of 2014, the US census bureau states that the average annual household income is a little over $50,000. My salary is about average for an US household. My move from a North Carolina public school system(notorious for poor teacher pay) to an international school in Kuwait meant that I earned an increase in salary. Additionally, this position includes paid living expenses so I no longer pay rent or utilities. All of this has allowed me increased flexibility in my spending. I was really proud to pay off over 10K in debt over the past year. I still have one credit card and a student loan to pay off and plan to do so this school year. Is travel interfering with my goal to become completely debt free?
Yes and no. I follow the teachings of financial advisor Dave Ramsey. I feel as if he gives simple instructions to eliminate debt and build wealth. I have an emergency fund in place and used the debt snowball method to pay off my debts from smallest to largest. Dave talks about "gazelle intensity". He teaches about giving up "extras" such as eating out and taking vacations in order to reach the goal of financial freedom. I am not gazelle intense. Sometimes my budget approaches gazelle intensity and other times, like this summer, the debt free goal is more like "turtle" intensity. I both cases, still pay extra toward the smallest debt beyond the minimum due. I chose a position living abroad because of the travel perks. Therefore, I choose to continue paying off debts AND travel. But I have to be smart about this. Here are some of the ways I try to be smart about spending while traveling.
1. Every trip has a budget
My monthly budget has a category for travel. I have to know what I am spending going into a trip. For example. When I went to Egypt, I did not want to pay more than $600 total. My airfare cost $239 and shared hotel cost $165. All other expenses had to come out of the remaining $196. I overspent by about $7. I find that with a budget, I'm more conscious about my spending in general. Even if I overspend, it is much less than if I am just guessing about my expenses as I go.
 |
| US dollars can go a long way in Egypt |
I also like to pay for my trip in stages. I may buy the plane ticket in March and then pay for the accommodation in April. When the trip comes around in May, I only have to pay for food and other miscellaneous expenses as I go. I also book everything myself. I've never used a travel agent. Why should they get a cut of what I am paying for my trip? The internet is full of resources making a travel agent obsolete in most cases.
 |
| This is a photo of my hotel in Paros, Greece |
 |
| This simple kitchen has a toaster oven, 2 burners, a sink and a fridge. Perfect for a week at a beach getaway |
 |
| my apt in Greece |
2. I stay in budget accommodation
If you live in America, you might be picturing a dingy Motel 6 with bed bugs and roaches. This has never been the case for me. I use Airbnb.com and Booking.com regularly to find affordable places to stay. For example, I am currently in Greece staying in a 1 bedroom apt. for a week. This apt. cost me $55.00 per night. My stay in Athens was also about $50/night. I found both of these places through AirBnb. In Athens, I stayed in the home of a local resident and slept in the bedroom that she rents out to guest. While it is different to stay in the home of someone who is not your friend or family member, it is also nice to be welcomed by someone upon arrival to a new country. I look for host who have lots of positive reviews. I look for female host as well because I feel more comfortable staying with a woman. I have found the host to be kind and willing to give lots of tips because they are proud of the cities in which they live. I will be going to Santorini next week, and that will be the first time I will pay over $100/ night for a hotel stay in my entire year of world travel excluding 1 trip within the US this summer.
 |
| my AirBnB home in Athens this August |
3. I use a currency converter
I have a currency converter app on my phone. This helps me to know what I am actually spending in other countries. This is especially important in Kuwait because you must multiply to figure out the amount in US dollars. If I am shopping for spaghetti sauce in the store, it doesn't seem like a big deal if the price is 3KD because 3 is a small number. However 3KD is almost 10 US dollars. My currency converter helps me to determine whether I am getting a bargain or just getting ripped off.
4. I walk and use public transportation
Walking is a great way to see your new environment and burn off calories. I prefer to walk or take a local bus/train over using taxis. They are usually much more affordable than paying a taxi. I like using Google Maps for walking directions and the app RometoRio which compares the time and cost of walking vs. buses/trains vs. taxis. If my options are a free 25 minute walk with Googles turn by turn walking directions or a $16 nine minute taxi ride, I prefer to walk.
 |
| my kitchen sink is also doing double duty as a washing machine |
Eating out gets expensive when you travel. Its nice to stay in places with a kitchen so that you can prepare meals for yourself. Even if groceries are a bit more expensive than at home, they are still usually cheaper than eating at restaurants for 2-3 meals each day. AirBnb homes are great for this, because host usually welcome you to use their kitchens and cooking utensils.
 |
| This man is holding a notebook and umbrella that say "ask me about a free walking tour" in the heart of Amsterdam. He lead a pretty great tour. |
7. I LOVE free walking tours
Check it out the next time you travel. Most big cities have these. Instead of paying a tour company $25-$50 or more for a tour of the city, I look for the free walking tour. The tour is usually given by a local resident who meets the group at a local monument and walks with your tour group giving highlights at locations around the city for 2-3 hours. I have done this in Sydney, Amsterdam, and Athens. I find that the free tour guides tend to be local history buffs eager to share cool information about their hometowns including best restaurants, cheap ways to get around, and local hot spots. They work for tips. I try to give a tip that is equal to at least half of what I would pay for a tour through a tour company.
 |
| its like the big comfy chairs are there to tease you as you file back to coach |
8. What's first class?
I fly coach with the regular people :). Those plush seats in the front of the plane look really tempting, especially for long flights of 6 hours or more. I have to be realistic. I'd rather spend $1,000 on the trip itself than spend and extra $1,000 to sit in the comfy seat on the plane. My current "first class experiences" are seeing beautiful place and meeting cool people, not sitting in comfy seats and staying in fancy hotels.
9. I don't "Finance" my travel
My goal is to get out of debt, so my airfare and accommodation expenses do not go on credit cards. I have paid for 1 plane ticket in the past year with a credit card and really didn't like the feeling. I know that credit cards have consequences, but have learned that I revert to an immature "money grows on trees" mentality when I use them. If I used credit cards when I traveled, I would talk myself into upgrades left an right. I understand that bonus points are available, but I personally don't have the self control to use cards for necessities only and never "wants". It's safer and cheaper for me to use cash.
 |
| photo taken during my morning walk in Paros, Greece |
 |
| photo captured during my morning walk in Paros, Greece |
Travel can be more affordable than you might expect. My home base in Kuwait means that airfare to different destinations is far cheaper than it would be from the United States. I still search for the best deals to make each travel experience both comfortable and affordable.
As a teacher in North Carolina, I felt as if my goal to travel internationally was unrealistic. However an international move has allowed me make progress with my goals of paying debts and traveling more.
