If you’ve been following along for a while, you know that we’ve been saving like crazy for over a year to pay upfront for most of our big travel adventure. We set up and have been feeding our dedicated savings account with a regular monthly allotment along with every extra spare penny we’ve gotten along the way.
We’re at a stage right now though where, for the first time in a long, long while, we are carrying a balance on our credit card; that is, we’ve overspent our savings in order to make upfront reservations for the trip. We knew this was going to be the situation for a few months, but it’s still a bit uncomfortable for us, to put it mildly. We could take funds out of our regular savings and pay it off, but the plan has always been to pay for our travels using only dedicated travel savings and proceeds from the sale of our household goods and car. We’ll chip away at the balance for the next couple of months and have it gone by the time we depart in August, if not before.
While we travel we’ll live on our regular monthly income, and plan to put the amount we’re currently paying for rent into a separate savings account to build a sort of secondary emergency fund, if you will. This savings should also give us a nice cushion to land on when our adventure ends. When we leave Kaua’i we’ll have just two monthly payments – my student loan and our phone bill – and they’re already set up on auto-pay. Otherwise we’ll have no other bills – no rent, no utilities, no gas, no cable, no car or rental insurance, etc. – our income after putting away savings should be more than enough to cover food, inter-country transportation, side trips and other daily expenses each month.
We plan to travel and live as frugally as possible along the way. The Senior Nomads recently said they shoot for two no-spend days each week and we think that’s a worthy goal for us too. Not only will this help us to stay within our budget, but also require us to get out more and explore our surroundings rather than depend on tours, tickets, etc. to entertain us. I’m not sure yet whether we’ll be able to go without gelato for two days when we’re in Italy, or avoid stopping into the patisseries or boulangeries for two days when we’re in France – we’ll have to see about that. We may need to set up a separate gelato or bakery fund that we can dip into.
I’ve always been a firm believer that by setting realistic goals, financial or otherwise, and supporting them with careful, well-thought out, long-term plans dreams really can come true and be sustainable. We’re about to once again test those beliefs in a big way!