Getting Your Finances Ready For A Year-Long Around The World Trip

With seven continents and 195 countries making up the world, a year-long around the world trip is the perfect way to explore the likes of Australia’s great barrier reef, Egypt’s The Pyramids of Giza and the Virupaksha Temple in Hampi. However, as frequent travelers recommend a budget of between $20,000 and $24,000 in order to comfortably spend a year trekking around the globe, it’s important that you manage your finances during your travels and before you hit the road.

Get your finances in order before you leave

Data from Comet reveals that 80.9% of Baby Boomers, 79.9% of Gen X and 81.5% of Millennials are in some type of debt. Meanwhile, just 38% of the population carry no debt. Therefore, before you head out of the country for a year, it’s wise to pay back as much as possible. Before you leave, consolidate any remaining debts you have so that you have just one monthly repayment to make. Then set up a standing order to ensure this debt is covered while you’re away.

Do your research

In order to know how much cash you’re going to need for your trip, you’ll need to plan where you’re going to visit and research the prices of things such as accommodation, food and local travel in the area. It’s also important to factor in the cost of travel insurance, which is an essential policy all travelers should take out as accidents and illnesses can result in a pricey hospital trip. Meanwhile, be prepared to fork out for essential vaccinations, including rabies shots, which can cost $3,000 USD.

Maximize your savings

With it being crucial to get on top of your debt, to take precautions, and to have spending money, you’ll need to do everything in your power to boost your finances before you pack your bags. Placing your cash in a high-interest savings account is wise as it will slowly build up during your travel preparation. It’s also worth considering selling some of your possessions to make extra cash. After all, you won’t need them while you’re away and it will save on storage costs while you explore the world.

Optimize your tax return

A tax refund can provide a significant boost to your travel fund, so it’s a good idea to create a strategy to get the most back. One of the most impactful ways for families to maximize their return is by claiming all eligible tax credits, especially the child tax credit if you have children. This credit, which is up to $2,200 per qualifying child for the 2025 tax year, can directly reduce your tax liability and may even be partially refundable, providing a cash refund even if you owe no tax. To maximize your refund further, be sure to select the correct filing status (such as Head of Household if you’re a single parent), consider itemizing deductions if your expenses exceed the standard deduction, and explore other valuable tax credits and deductions you might qualify for, such as those for education expenses or contributions to a retirement or health savings account.

A year-long trip around the world provides a great opportunity to learn and see things you never knew existed. However, in order to relish your time overseas, it’s vital that you’re financially ready for your travels.