Financing Around The World Family Travel: Credit Cards, Money, Banking and Finding Work
For an in depth look at how we fund our adventure including a summary of monthly income from passive income streams you should visit our Around The World Family Travel income reports.
The Essentials
- To allow for travel, we spend less money on things at home (new cars, clothes, stuff in general).
- We have no debt, including credit card debt – in order to remain financially free to leave.
- We rent out our home when we travel.
With no debt (except a mortgage) renting our house allows us to leave without sending a dime back home.
Most americans don’t live this way. Their huge debt load would make it awefully difficult to leave. Many of our friends tell us “Oh we’d love to do what you do, but we can’t” – money, debt, obligations, etc.
Most folks simply choose their boxes. Any of us can do what is fundamentally most important to us!
Financial Basics for Around The World Travel
Track your expenses – I use Mint.com and Trail Wallet- Categorize in to “wants” and “needs.
- Cut your “wants.”
- Think of things as opportunity costs: the loss of potential gain from other alternatives when one alternative is chosen.
- Retina MacBook Pro vs. a plane ticket
- New camera vs. the pictures you could take with the one you own
- Cut the coffee. Cancel cable. Find a roommate. Sell your car.
- Build a network on Couchsurfing to save money in the future.
Banking and Money Handling Overseas For the Entire Family
Don’t give your savings to banks!
- Global ATM Alliance
- Charles Schwab (#1 This account is a must and allows for free ATM withdrawals from around the world!)
- Capital One
- Fidelity
- HSBC (secondary bank)
- Bank of America (worst case scenario)
- If you’re living long-term somewhere, get a local bank card.
Avoid overseas fees on credit cards
- Capital One No Hassles Rewards Card (best one)
- Chase Sapphire Rewards Card
- United Mileage
- Chase Ink (business)
- American Express Platinum
- Stick with Mastercard or Visa
- Always have a backup bank card and credit card
Seven ways to save money
- Don’t let them charge your purchases in local currency
- If they ask you, always choose US Dollars
- Never exchange money at airports
- Never use traveler’s checks
- Avoid random ATM’s and always use bank ATM’s
- Keep cash on hand for emergencies only. Look for exchanges in ethnic communities.
- Use Currency (app) or xe.com for exchange rates.
Tips
- Take multiple copies of your passport.
- Go paperless with your billing.
- Earth Class Mail will scan your mail.
- Make sure you have the right vaccinations.
- Call your credit card companies.
- Give your parents all of your bank information.
Retirement Savings While Away
- Place your 401K on automation
Get Free Rewards with Travel Rewards Cards and Make The Minimum Spends
Ways to fake spending for high spending requirements.
- Pay your taxes (if you have to) with your travel credit card.
- Amazon Payments: give $1000 a month without a fee. Then have your friend give it back to you. Using Amazon Payments. We have done this many times and it works like a charm. Not just for reaching your spending limits but also to earn rewards points. http://www.extrapackofpeanuts.com/how-to-use-amazon-payments/
- Sign up for cards with a spending requirement of $1000 or less.
- Use PayPal or Amazon Payments to pay rent.
Three Notes of Caution
- Don’t spend money just for the points.
- Start out slow and on’t go overboard if you are about to make a big purchase.
- Have a specific goal.
How to Collect Extra Points
- Shop with partners: all points programs have online shopping partners.
- Have your family give their points to you.
- Sign up for airline and credit card newsletters. Follow them on Twitter and Facebook for special deals.
Use awardwallet.com to manage points.
No fees, no fees, no fees!
- Frequent flyer & Hotel program sign-up information
- Mileage required to redeem awards on different airlines
- Points required to redeem for free hotel nights
- Helpful tools to track and redeem miles
- Screen capture tools to make copies of Terms & Conditions of promotions and credit cards sign-on bonuses
- In some developing countries, using cash is better to avoid fees.
Finding Work & Living Overseas
It’s about getting a job, not a career. It’s about earning money to continue traveling, not building a resume. Be flexible
Search online job boards
- Council on International Educational Exchange Work Abroad Program
- Alliances Abroad
- BUNAC
- InterExchange
- HelpX.net
- Workaway.info
- Contact expat groups before you leave.
- Bring copies of your resume and professional certificates.
- Get business cards!
- Go to networking events.
- Common jobs: English teacher, hostel worker, bartender, waiter, cruise ship crew, dive instructor, tour guide.
- How to Teach English Overseas
- To get a good-paying job, get a TEFL/CELTA degree.
- Where to teach: public schools, private schools, language institutes, summer schools, business classes, international schools, private tutoring
- Popular places: South Korea, Japan, the Middle East, Thailand, China, Mexico, Central Asia, Prague, Argentina, Ukraine
- Look at DavesESLCafe website for salary expectations.
- Teach in Thailand: ajarn.com
- Be flexible, know a little about the culture, have no expectations.
- Be patient, and take things slow.
- You can live and work in Thailand on a tourist visa, just need to hop in and out of country.
- Be wary of any company that asks you to pay a fee to get a job.
- Dave’s ESL Cafe has a good forum for teaching English abroad.
- For odd jobs and tasks: taskrabbit.com and elance.com
Saving Money on Activities
- Get tourism cards. They will save you money if you want to do sightseeing.
- Go to museums on free days.
- Use discount cards: VIP Backpackers (Aus, NZ, Fiji), ISIC, IYTC, YHA, STA Travel
- Visit local tourist offices.
- Go on free walking tours.
- Book via student websites like STA Travel.
- For deals on activities in NZ: bookme.co.nz