Around the world in Au$8000

by Travel $mart @ Yahoo7  July 22, 2010, 2:55 pmYahoo!7

Around the world with $8000

"It's the ultimate dream. Pack up your belongings and head off into the great blue yonder. It's a right of passage and a unique experience which will shape your life forever.

With some estimates pegging that around the world trip at $35,000, for some the dream is stunted before it even starts. The reality though is that you can backpack on a budget. All that's required is a little lateral thinking, some careful financial planning and key insider tips from those in the know.

For those who have been backpacking for years – otherwise known as "professional backpackers" it's all about the cheat sheet. Check out some handy hints to get you around the world on just $8000.

Before you go: Kick into serious financial planning mode. You're going to be living on a lot less – get used to it. Set a budget and save. Ditch fancy dinners and take away coffees – your new mantra is economise, economise, economise.

Plan your route strategically: Get online and check out your routes. The golden rules are don't retrace your route and don't aim for far flung destinations such as Antarctica which will blow your budget immediately. Research your destinations and if you plan to travel to Europe or North America try mixing it up with side trips to cheaper countries like Thailand or South America to get the best value from your plane ticket.

Talk through your plans with family and friends – determine if you have any far flung relatives in key destinations which will cut your accommodation costs dramatically. Actively seek out off season destinations which will save you dollars in the long run.

Getting equipped: Buy only the essentials. Guaranteed your supplies and clothes will be cheaper on the road. Plus how do you know what to pack? At least buying in-country is cheaper and you know what you need – saving dollars on unnecessary equipment.

On the move: Consider overland travel versus air – it may be longer but it's definitely cheaper. If a group of you are heading in the same direction consider hiring a car and pooling resources. Instead of getting buses and trains to get around the city hire a bike and take in the sights pedalling, you will save and stay fit at the same time.

Getting a roof over your head: Accommodation will be one of your biggest expenses. Consider sharing double rooms with friends, booking travel which takes place at night – giving you an extra night for free and seek out hostel chains such as YHA [Youth Hostels - mod note] who offer member discounts.

Money $mart: Remember to budget well. Set a daily spends limit, opt for activities at unpopular times and shop around when it comes to travel. Explore markets and local food grocers for gourmet treats rather than eating out and pick 'free' days to visit galleries and museums.

Think about the best way to manage your money overseas. The easiest way is with a prepaid travel card. Commonwealth Bank's Travel Money Card is particularly smart as it allows you to carry multiple currencies on one card – up to six and features the most prominent international currencies including United States Dollars (USD), Euros (EUR), Great British Pounds (GBP), Australian Dollars (AUD), Japanese Yen (JPY), New Zealand Dollars (NZD), Hong Kong Dollars (HKD), Canadian Dollars (CAD) and Singapore Dollars (SGD).

Staying in touch: Taking your mobile travelling can result in expensive bills. Consider using your mobiles for just emergencies and to receive calls from your parents. For everything else purchase a calling card from your local hostel. If your phone has a WIFI find out where free hot spots are around the city.

Finally remember the backpacker network is your friend. Ask around, share tips, books, supplies, cook as a group – these people will save you money in the long term and who knows you might make a friend for life."