“Live large and on purpose.”

How can you afford it?

People are naturally curious as to how we can afford such a grand venture. The simplest answer is that we decided to afford it. We saved. We made sacrifices. It took time. Savings over time. Small steps. Anything of significance in life takes application over time.

Before we got too far down the path into planning this particular trek, we conducted a thorough financial analysis to determine whether we could realistically afford it.

We studied in-flow and output and projected both for the travel year. We scrubbed and eliminated as much of the output as reasonable and then set up a rough monthly travel budget. We reviewed our savings, investments, and upcoming costs.

The bigger question is how did we save and invest enough to make this even possible?

Before the trip

Over decades, we applied different concepts to grow the funds to support an outsized dream. We did not necessarily use these tools consistently or correctly, but we used them really well early in our professional careers and marriage to make a difference. Setting that foundation, planting those seeds and letting them grow, made the difference. Below is a short list of the approaches we exercised over time to afford our trip:

1. Make a plan. Be deliberate. Know the why and develop the how.
2. Pay yourself first. Save and invest.
3. Live below your means. Only possible if you follow #1 and #2 above.
4. Apply principles of ‘dollar cost averaging’ to investing. Invest systematically.
5. Reinvest all gains and dividends. This cannot be understated.
6. Time.
7. Review your large expenses regularly to minimize outflow creep. Be aware. Compare. Challenge. Know the hidden costs and be sensitive to changes to mortgages, cars, insurance, medical costs, and other regular bills such as cell-phone coverage, garbage service, power, and water. Be cautious of blindly paying bills electronically.
8. Set out to practice minimizing day-to-day expenses. Shop. Buy only during sale season, clip coupons and use them. Learn how much “free shipping” and “memberships” actually cost. These things make a real difference over time. Pennies add up to dollars. I think sometimes our society forgets.
9. Establish direct passive lines of income. One obvious personal example is my military retirement.
10. Actively improve your financial knowledge and practices. Read blogs, listen to podcasts, join an investment club, and subscribe to periodicals. It’s a process. Experiment by applying some of the ideas that make sense to you.

During the trip

While traveling we stay within our budget by sleeping at Airbnb homes that are near public transportation and have full kitchens – which helps us avoid (not eliminate) rental vehicles & fuel, restaurants, and expensive hotels. We shop at grocery stores and cook as many of our own meals as possible, write down every penny that we spend, and are selective with big-ticket items and special activities. For example, in order to not blow our monthly budget we didn’t visit Tasmania, New Zealand’s north island, or the Australian outback.

I hope this post provides insight into how we are affording our Holliday360 adventure. Regarding the list above, I debated over the amount of detail or examples to include, particularly in regards to #10. I am not a financial planner, advisor, or expert and have not received any formal training. However, I/we have applied all of these steps.