Money whilst on your RTW

What should my budget be - well how long is a piece of string?! It’s a tricky question, as every traveler has different requirements, travel plans and standards of living. There are, however, a few general tips and rules of thumb that usually stand strong with the vast majority of round the world travellers.

• Beware of ‘false economies’ – it is easy to get carried away trying to do everything for the lowest possible cost, only to find that you pay out more in ‘extras’ further down the line. A good example of this would be joining a budget tour only to find that you have to pay for all meals, the guide’s meals and some additional accommodation.
• We always recommend pre-booking a first couple of nights accommodation, especially when arriving at a new destination late at night.
• Bear in mind additional costs you may incur by purchasing an unsuitable round the world ticket. We offer some great deals but if you end up having to spend days on a bus or paying for additional flights when abroad you may end up regretting not paying a little more upfront. Speak to you consultant for advice on this.
• Asia and the Indian subcontinent offer fantastic round the world stops if you have a tight travelling budget. Living is cheap and you will find the budget traveler is very well catered for.
• Overland tours and safaris are often the only way to access the ‘must-see’ destinations in places such as Central or East Africa or the Altiplano. Don’t always presume that you can do it cheaper independently.

A budget

We are going to stick our necks out and offer some ballpark figures for a few suggested travelling budgets, to help give you a guideline:

Gap Year Traveler - Fresh out of school and on a tight budget – away to travel rather than socialise every night, happy to stay in budget hostels, take the cheapest class of bus or train and eats at the budget restaurants.

* South East Asia and the Indian subcontinent - £15 - £20 per day.
* South and Central America, Africa, Australasia, Middle East - £15-£20 per day.
* North America, Europe, South Pacific - £20 + per day.


Career/Senior Gapper – Looking to travel and to live a little. You like to shop for souvenirs for the home, eat at some nice restaurants now and again, travel on a better standard of bus and stay in mid range accommodation.

* South East Asia and the Indian subcontinent - £20 per day.
* South and Central America, Africa,Australasia, Middle East - £25-£30 per day.
* North America, Europe, South Pacific - £35 + per day.

How to carry your travel money whilst away

In recent years things have changed for the better and it is far easier to carry your travel money safely. Why?


• Firstly, ATM's (holes in the wall or bank machines) are far more widely available and if you have the correct type of card – this usually means Visa, Maestro, Cirrus (you should check with you bank if you are unsure), you can obtain your cash in installments by using them. Guidebooks are usually a great source to find out where you can find the nearest bank machine or check here

• Getting money transferred is cheaper and easier now than ever before. This saves you carrying large sums of money in cash and travellers cheques.
• You can pay by Visa, MasterCard and various other credit cards in many more outlets than a few years ago. Budget travellers should not expect to be able to pay by card at many hostels, cafes etc but you will be able to withdraw money with your card in the larger towns and cities.

There are lots of ATM's in the Asia or Africa, at least in cities, and in many places people would never expect to find them. But sometimes the only ATM around isn't connected to your bank, the power is out, the phone connection is down, or the ATM is out of cash because of a local holiday you've never heard of.

When they work, ATM's are the best way to get money while you are traveling. Leaving your money in a bank because it earns interest until you withdraw it. Almost everywhere, ATM's dispense cash in the local currency, so you don't have to deal with exchanging one currency for another. But don’t count on finding ATM’s *everywhere*, or you might get stuck someplace with no cash and no access to your money. Just in case, have some money readily available.

Credit Cards

Save your credit cards for expensive purchases. For smaller expenses, get cash from ATM's, and if the local ATM withdrawal limits allow, take out enough cash supply to last several days.
Fees are the down side to using ATM’s and credit cards. Check with the company that issues your cards, before you leave home, so you know what to expect and can bring the cards with the lowest fees.

Credit Card and ATM fees

Typical fees include charges for each cash withdrawal or purchase outside your home country or in foreign currency, plus a percentage surcharge over the wholesale exchange rate. For example, you might be charged £5 for each withdrawal by the foreign bank whose ATM you use, and your withdrawal might be converted at an exchange rate 2% worse than the wholesale rate. That works out to a total of £7 on a £100 transaction. So its better to do as few transactions as possible is a good rule of thumb - also don't stress about it too much - ATMs are still the safest way of getting money. Stuart, a Director here, once met a guy in Cambodia who carried all his cash in his moneybelt - he got robbed - and that is expensive.

Travellers Cheques

Traveler’s cheques have largely been replaced by ATM cards, and with good reason. In most of the world, you have to go to a bank (sometimes only certain banks) to cash traveler’s cheques. However, we recommend you carry a few travelers’checks in your money belt in case there are no available ATM's, there is a problem withdrawing from them, or their fees are excessive.


Some tips from the round the world team

• Always carry a few dollars in cash - it’s a great way of ensuring there is a roof over your head and a meal in your stomach if all other options have failed you - it happens now and again!
• Money belts are an essential item. Some choose to use them on an everyday basis whilst others wear them only on long journeys and when carrying larger sums of cash from the banks.
• Never pull out large bundles of cash in public, it attracts unwanted attention and will probably drive the price of any sale up. It’s always advisable to keep a small amount of change in the main part of your wallet or money belt with any larger sums hidden.
• In some countries you will get an enormous number of notes in local currency when you change just a small amount of your home currency. Bear this in mind as you will have to carry it with you.
• Most hostels, hotels and beach huts have safes, often situated behind the reception desk. Take advantage of the opportunity to safely store any of your valuables that you will not need during your stay but be sure to collect your items when you leave…it could be a very long journey back.