How to Budget for a Round the World Trip (2025)

Travelling the globe can cost less than you think. During my round the world adventures, I picked up useful tips for managing finances across multiple countries and currencies, from planning your costs in advance to choosing the right cards. Discover how to budget for a round the world trip, so you can have an incredible experience without obliterating your savings.

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Quick overview on how to budget for a round the world trip

• Choose budget-friendly destinations to maximize your money
• Consider buying round-the-world flights in advance
• Learn the daily average costs per country to calculate your likely expenditure
• Choose the right travel cards
• Create a budget spreadsheet per country to track your spending
• Always carry cash

Planning a budget for a round the world trip

Travel is a privilege I don’t take for granted – I saved up until I was debt-free before taking the leap. If you’re lucky enough to travel, maximizing your money can make the experience even more rewarding.

A recent Hostelworld survey revealed that over half of travellers are prioritizing affordable destinations, while almost 40% look for discounts or deals on flights and accommodation. With economic uncertainty on the rise, it’s no surprise.

Learning how to budget for a round the world trip doesn’t have to be overwhelming. The key is breaking it down into manageable steps. Unexpected ATM fees and currency conversions can drain your budget, but with a few simple strategies, you can take control of your money and focus on the adventure.

Prioritise cheaper destinations

The destinations you choose will be a big factor in determining the overall budget when planning a round the world trip. Daily costs can vary dramatically between regions, so spending more time in places with a lower cost of living can save you thousands.

Budget-friendly destinations include India, Thailand and Bali in Asia; parts of Latin America and South America; and countries in Central and Eastern Europe. In these regions, you might spend $25-40 per day, while destinations like Western or Northern Europe, Australia or Japan could easily cost $80-150 daily.

Research visa requirements early in your destination planning, as some countries have more expensive visas than others.

Get strategic with your flights

Once you have an idea of where you want to go, it’s time to organise getting there. Flight costs are usually the largest single expense in any round-the-world budget, but smart planning can reduce these costs.

Consider purchasing round-the-world flights from airline alliances like Star Alliance or Oneworld (this is what I did). As well as saving you money by buying all your major international flights together in one transaction, you’ll accrue loyalty points (I ended up with enough to pay in full for my flight back to the UK from Thailand). A round the world ticket covering 6-8 destinations in economy class can cost around $5,000.

When booking these tickets, you must travel in one direction (east or west) and you can’t change the stops once you’ve chosen them. Many of my flights offered flexibility to change the flight date, which was helpful.

Some travellers prefer to piece together one-way flights instead of traditional round the world tickets. This gives you maximum flexibility but it often works out more expensive if you’re booking flights close to your departure date.

Calculate your costs in advance

When planning your travels, your biggest upfront expense is likely your flight, followed by insurance. But how can you anticipate day-to-day costs in another country?

My top tip is to visit Budget Your Trip. This website will estimate daily expenses for your chosen destination.

Select the country you’re going to and your travel style (budget, mid-range or luxury) and it will break down the likely costs for accommodation, food and more. Since travel, like life, rarely goes exactly to plan, add 10–15% to the daily costs outlined and make that your basis for an estimated weekly or monthly spend.

I used the Budget Your Trip site to plan my trip costings for Goa, Malaysia, Bali and New Zealand. It was pretty accurate every time. In some places, I came in under budget, so I was able to stay longer there without worry.

Accommodation costs will typically be 30-40% of your daily expenses. Hostels and basic guesthouses are the go-to choice for budget travellers, but there are other alternatives like house-sitting, or working in exchange for accommodation through platforms like Workaway.

Check your cards in advance

Traditional credit and debit cards often hit you with fees when withdrawing cash abroad or paying in another currency. These charges can add up fast.

This is why I recommend getting a prepaid travel money card like Revolut or, my favourite, Wise. There are several benefits to cards like this. They have digital multi-currency wallets with competitive exchange rates and low conversion fees. You get free cash withdrawals (up to a certain amount per month; ATMs may still charge a fee). Finally, when you pay with the card online or in person, you won’t be charged any fees.

Horror stories about card cloning at ATMs are common, but using a card like this offers peace of mind. Since it’s not linked to your main bank account, only a limited amount of money is at risk.

Take your debit and credit card too, for larger hotels or car rentals. It’s smart to have both a Visa and Mastercard to cover different merchant preferences. Don’t forget to monitor your card accounts regularly through apps or alerts to stay on top of your money.

Create a budget file to track spending

Spreadsheets aren’t exciting, but they can save you headaches while travelling.

Using your estimated daily costs, set up a budget file in Excel or Google Sheets. Break down your spending into categories like food, accommodation, transport and entertainment. This will be a working file to track your money and spot areas where you might overspend.

On my year-long backpacking trip, I created a new spreadsheet in each country, including currency conversions for a clear idea of costs and updated it daily.

It’s a great way to stay in control and avoid surprises with your finances. Alternatively, use an app like TravelSpend to monitor expenses on the go.

Always have cash on hand

Even in today’s card-dominated world, many places still rely on cash, so keep local currency in your wallet.

While travelling, I’ve urgently needed cash when ATMs were out of order or shops didn’t accept cards. Especially in rural areas, markets or small, local businesses, having paper money can save you hassle. Some places also charge extra for card payments, so paying in cash helps you avoid unnecessary fees.

Consider carrying a few U.S. dollars too, as they’re widely accepted in emergencies or for currency exchange, especially in countries like India or parts of Southeast Asia.

This saved me when I needed to settle a hotel bill in Kerala, and the nearest ATM had a mile-long queue.

Final thoughts on budgeting for your round the world trip

If you’re fortunate enough to travel, it should be fun—not a financial headache. With a bit of planning and the right tools, you can focus on the adventure, not the expenses.

Budgeting doesn’t have to be a burden—it can be your ticket to peace of mind.

And if you come in under budget, why not treat yourself to something special or even extend your journey for a few extra days of exploration?

Travel more, spend less. Here’s to more adventures and less money stress.

Now discover the other essential things to know when planning a round the world trip.