Saving for world travel with kids: managed in a day!
Saving for world travel with kids: managed in a day! The title of this blog sounds like something that could only be done if you win the grand prize in the lottery, yet we managed to pull this off in one day. We are going to tell you how we did this and have written down the exact numbers for you, so we can prove with facts how we succeeded.
Table of contents
Step 1: how much money needed?
First, we looked at how much money we needed for our family (two adults and one kid).
We started searching online for stories of families who had traveled around the world and found a story of a family (two adults and two kids) who had been to Asia (Vietnam, Thailand and Malaysia) for three months.
This family displayed a cost breakdown of what they spent per item on this three-month trip to Asia. The total amount they spent on vaccinations (300 euros), visas (120 euros), daily budget (100 euros for sleeping, eating and trips) and transportation (airfare 3000 euros and local transportation 1076 euros), came to a total of 13,500 euros.
We found three months to be a bit on the short side, so we are doubling the trip length to 6 months (Thailand, Laos, Cambodia, Vietnam, Malaysia and Indonesia). We do have only one kid instead of two kids, so in some ways we need less than this family.
Thus, from vaccinations, visas and in-country transportation, we take 75% of this family’s cost and from the daily budget we take 85% of the cost.
Then we double these expenses (except vaccinations and airfare to and from Asia) since we don’t want to travel for three months, but 6 months. We then arrive at a sum of 20,319 euros for a trip to Asia with our daughter for 6 months of world travel.
Yet this is not the entire cost of living, as there are also the fixed expenses (mortgage, insurance, subscriptions) of home, which generally just keep going and which you therefore do have to take into account. You must also purchase travel insurance, which is currently included in the cost. We will come back to this later.
Saving for world trip with kids
Step 2: What can you save on?
It seemed like the challenge for us to take a hard look at our expenses. We did have a condition with this, however, that we did not want to feel that we had to leave things behind in order to realize this dream trip.
We started looking at all of our expenses in the morning and started with the most important expense: fixed expenses. We took out the paperwork and with many airlines where you have something running, you can log in online, where you have all your information available to you right away. That morning we came across the following 5 fixed charges:
When we had logged into our mortgage provider’s website, we saw that we had taken out our mortgage seven years ago and that our interest rate was still fixed for 13 years. We fixed the interest rate for 20 years. We did see online that we could average with the interest rate (reclosing for 20 years, where we were going to pay an average interest rate of 13 years our current rate and 7 years the rate that is currently current). At the push of a button, this saved us 85 euros net per month (gross amount – the mortgage interest deduction). On an annual basis, this is 1020 euros, in which we continue to live in the same house and therefore do not notice anything about this in our daily activities.
We went through all the insurance we currently have and looked on comparison websites to see what the lowest amounts are currently here in terms of providers.
We could save this by insurance:
– Auto Insurance. For our two car insurance policies, we were able to save 34 euros per month. Because we had these policies for years, we were able to cancel them by the month and take out the other two policies the same day. Per year, this saved us 408 euros.
– Liability, property and contents insurance. We had taken out these three insurance policies seven years ago when we bought our house and had gone up a few euros each year.
Online we also found exactly what was insured, which also allowed us to enter online exactly what we wanted to reinsure. We went from 46 euros a month, to 26 euros. A saving of 20 euros per month and on an annual basis a saving of 240 euros.
– Travel Insurance. For our world trip, we had all kinds of modules turned on with this company (such as long-term travel insurance), which we can turn on and off monthly. We had not looked into this after our trip and with a few clicks we saved a little more than 10 euros per month (120 euros per year).
#3: Gas/ water/ light
With most energy companies, you can log on to the website and it will tell you exactly what you consume on an annual basis. We shut off the water from Brabant water, which is the only provider of water, so there was little to pick up here.
For gas and light, we entered our annual data at gaslicht.com and it turned out that we could save 55 euros per month (from 180 euros to 125 euros per month). By signing up online with the new company, we were automatically transferred. So here we didn’t have to do anything ourselves and this saved us 660 euros per year after 5 minutes of work.
Due to the corona crisis, we could not exercise for a while and had purchased some weights, a sports bench and a mat. At the gym, I (Joep) usually did 20 minutes of treadmill, 15 minutes of abdominal exercises on a mat and 20 minutes of workouts with weights. I paid 69, 95 euros per month for this including kids club for my daughter.
My daughter hadn’t wanted to go to the kids club for a while, and I noticed during the time when I wasn’t working out at the gym but at home, that I was doing just fine. In fact, the 20 minutes of outdoor running were a lot more enjoyable than running in a stuffy hall.
In addition, I could now exercise at any time and even in the evening when my wife was away and my daughter was sleeping. I was therefore going to the gym less and less often anyway, but canceling this subscription I had not done. With a single email (the gym was through years of subscription, cancellable monthly) we saved 840 euros per year right away with this.
#5: Daily shopping
As we have stated before, we did not want to go backwards in anything, and so we did not want to put more effort into the supermarket. We do our grocery shopping at the Albert Heijn around the corner by default and we like it just fine.
Still, we went to the supermarket in the afternoon to see how we could save money here. With us, that was mostly on the different brands. We did not pay attention to price in the supermarket and mostly grabbed the well-known brands that are most visible on the shelf.
We wanted to see what the cheapest option (usually the house brand) was and if we tasted much difference in the product. From things like soda, beer and potato chips, we immediately notice the difference in brand, but in the case of peas and carrots, frankfurters and soup, this difference is negligible we found.
Where we used to pay 3 euros for a pack of soup, we now had a similar soup for 1.70. For several products, it saved almost half the price. We also bought a plastic bag daily with our groceries (0.30 euros each time), which already saved us 100 euros a year by bringing a bag from home.
We were able to save a little over 4 euros a day with it without doing anything, which was about 25 euros a week. On an annual basis, this is 1,300 euros. This is a huge amount by looking just a little more critically at the supermarket. Of course, it may be an open door, but because of our laziness, we didn’t see how much money we could save with this.
Saving for world trip with kids
Step 3: When can we go?
At the end of the afternoon, we went back to math and added up all the savings. This, to our surprise, was 4,588 euros on an annual basis, without any restrictions on us or preventing us from buying certain items.
We included again the notice for our world trip to Asia for 6 months which, according to our calculations, should cost 20,139 euros. To this we still had to count our fixed expenses that continue during these 6 months. These were 1,200 euros, so we had to add another 7,200 euros (6 months x 1,200 euros).
Then we arrived at a total of 27,339 euros. If we divide this amount by our 4,588 euros saved annually, it means that in 6 years we could leave. We then had 27,528 euros and then had 200 euros left over to upgrade our travel insurance for a longer period of travel (about 60 euros extra for six months).
We earned this travel budget in one day and for the next 6 years we hardly need to put any extra effort into this. If you were to go the extra mile due to certain savings tips we described in this blog, this trip to Asia can be achieved in less than 6 years.
Hopefully with this blog we have been able to inspire you to save in the same way, so that your family travel dreams can come true.
Saving for world trip with kids