Want to Travel Full-Time? 5 Financial Planning Questions to Answer
Do you want to travel full time? This ambitious goal is a dream for many Americans, but few make it a reality. For your plans to be successful while you're on the road, you'll need to take advantage of time to financially plan. Here are five of the most important financial planning advisor questions every future traveler should answer.
How Long Will You Travel?
Do you want to travel permanently or just for a set period of time? This is the most basic question that will determine how you financially plan. If you plan to travel for many years, for instance, you'll probably need to earn an income stream to support it. Shorter goals, though, could be just a break in your earning capacity and funded from savings.
How Do You Want to Travel?
'Travel' isn't a one-size-fits-all concept. The way you like to travel will have a lot to do with how much you need to plan for your finances. Volunteering, couch-surfing, or hanging with international friends will be a lot less expensive than cruising the world. There is no right or wrong answer, but you'll need to alter your budget to accommodate your needs.
How Can You Reduce Home Expenses?
No matter how long you want to be gone, reducing the cost of maintaining a home base is a vital component. Permanent travelers might be able to sell their home or let go of a lease and rely on self-storage. But if you're just taking a sabbatical, you can still minimize home costs by renting out your house or moving into a studio apartment for the duration.
How Will You Add an Income?
An independent income stream is one key to long-term travel. Retirees may be able to create an income from their investment portfolio. Younger travelers might rent out their home, get a working visa and take odd jobs, or develop an internet-based side gig. It may take time to develop this income source, but it could be your ticket to longer or more comfortable travel.
How Long Do You Want to Plan?
Are you prepared to make sacrifices to leave with less time to prepare, perhaps taking advantage of a gap year? Or are you willing to work at your plans another 6 months, a year, or more? The more time you have, the more stable your finances can be. But you don't want to fall into the trap of never actually pulling the trigger on your dreams.
The best place to start working toward your goal of full time travel is by meeting with a financial planner or advisor. Armed with the answers to these questions, they can help you work out a realistic budget and craft a strategy to reach it. Make an appointment today to begin.