Tag money

One of the number one reasons we hear that people don’t abandon their cubicles and travel is a lack of money. One tip for managing your travel funds is to compare bank accounts. There are a lot of metrics for this, but essentially you want an account that you can access from around the globe, and one that has the added features you want, like checking and credit, or maybe just debit. Our tip? — Look into a basic bank account, for ease and less confusion down the line. Get a good account that will work for you, and that you can access from online while abroad.

Yeah, money is important. And that means (sadly) that you may have to pay your dues and work for a while before you hit the open road. Many of the long-term travelers we’ve met on the road are older. They worked hard for the right to bugger off the grid. On the other hand, many of them were self employed and able to work from hostels and cafes along the route. Either way, one thing all travelers with long-term aspirations have is great money management skills.

Second, know your financial situation. Don’t run from your obligations. You’re abandoning the cube, not society as a whole. If you run from debt they’ll eventually find you. So, get your financial situation to a manageable, happy place where you have enough to get by and have debit eliminated. Many travelers work from the road as writers, web developers, critics, photographers, etc. Find a skill that will pay and keep your bank account replenishing by putting in a few hours here and there for the cause.

Third, with a bit of work you can travel for far cheaper than you ever imagined. Instead of booking hotels, look for hostels and join HostelWorld for discounts and deals. CouchSurfing is another way to save money as you travel. Going by land is cheaper than by air in some countries (Asia, Africa, S. America especially). One thing that gets expensive is being in a rush, you are stuck buying whatever you need to have to get your vacation done in a time frame. That’s not relaxing. Take your time (just quit, ATC, baby!) and really travel on a dime. With solid, financial planning behind you and frugal living ahead it can be done.

Best of luck as you look for traveling cash and organize your financial portfolio so you can focus on enjoying this adventure called life.

Recently, CNN ran an article asking the question, “Should You Look for Work in China.” The article follows the story of two Texan-Americans, the Summer family, who decide to head to China for high tech jobs. It goes on to highlight that the number of Americans working and living abroad has increased significantly in recent years with a noticeable spike in 2010.

What I find interesting about this article from CNN is that they are missing the point. Americans are leaving the US because they have to. We left because we couldn’t find reasonable jobs. We could barely make ends meet working non-stop and living in the world’s smallest apartment. With insurance, medical bills, groceries, rent, internet and car payments, gas, phone, etc it was just too much to be met with two entry-level positions. And of course college loans had to be taken into consideration! Its like a massive trap designed from your childhood on so that you follow a certain outline and end up in college, and then of course in debt. Once in debt you have to work, you have no other choice! You have loans now. And then you trudge off to work to pay the loans but you have to have an apartment to live in, so now you have two payments. You have to have a means of transportation since there are no buses. Now you have three payments. If you are going to drive you need insurance. If you are going to work, they want you to have health insurance. You keep digging yourself into a ditch of debt that you can hardly pay off even working 5 days a week, 8 hours a day! And what time does that leave you for your own personal life?– a few hours at night spent exhausted while you sort bills and pull out your hair. No thank you! THATS why we left the US. There are not jobs that can support the basic needs of the American lifestyle. And it wasn’t even a life of luxury, as my friends and family can attest.

Abroad, you can live for cheaper. We get jobs that pay slightly less than in the US, but I’m not stuck paying car insurance, health insurance or any of the other things that slowly steal every pay check. I pay for a pay-as-you-go cell phone instead of a cut-throat Verizon contract that takes a Supreme court ruling to get out of. I avoid insurance payments because I’m less stressed and thus healthier and health care (barring major catastrophe) is more affordable. I use public transportation that cost less than 30 cents a ride. In short, I’m able to pay down my loans, save up some money and still build up a resume. Perhaps now you understand why I don’t like the expats who come over begrudgingly and complain about missing the benefits of America.

I love my country, and I’m a patriot, but I’m also a realist. Americans are leaving the country to find work elsewhere and this is a major sign that things have gotten out of control. It isn’t just me over here trying to make a better life for myself, its all of my expat friends who are doing likewise and thriving where they didn’t have the opportunity back home. They have time, like I do, for hobbies and self-cultivation. They have time, in short, to live life and not tread water just trying to get by. So, ‘Should you Look for Work in China?”– you should look for work wherever it is on the planet that will afford you the opportunity to pursue happiness instead of just survive. After all, that’s one of the three main staples of the American promise- Life, Liberty and the Pursuit of Happiness.

I noticed something recently on an American TV show called ‘Pawn Stars’ and that is the fact that Americans have no idea how to bargain. You’ll see the same thing on ‘American Pickers’ and other History or Discovery Channel shows. It is a common tale, you take something into the pawn shop and they talk you down from your original asking price and in the end they get the upper hand. Since we’ve been traveling quite a bit, I think we could take on the folks of ‘Pawn Stars’ and the ‘American Pickers’ with the bargaining skills we acquired traveling through Asia. But, in case you are new to the concept here are a few tips in the event you are traveling to Asia or are about to pawn an item.

As a Seller:
• Find a realistic and well researched asking price for your item by doing your homework. Look online for other items in similar shape and of similar age. Get a number from an expert, if possible.
• Now head to the market or pawn shop and ask for literally three times the number you are willing to settle for.
• Do not hesitate to turn a buyer away. You are one person with one product, and there are millions of people who are potential buyers, you don’t have to land the first one.
• Stick to your bottom-line price and do not go lower than that. Always attempt to go higher.

As a Buyer:
• Remember all the techniques you used as a seller and try to preempt their game by cutting their original asking price into 1/3rd of what they asked. This is a safe maneuver.
• Don’t be uncomfortable bargaining. In the bargaining game the goal is to end up with a number you are happy with as a buyer. Don’t worry about the seller’s feelings.
• Arrive at a price in your head that you are happy with and take one of two roads: 1) if you really want the product buy it at any price, or; 2) separate yourself from your desire to have the product and only buy it when the price is right. Don’t say your final bottom line price out loud until you get towards the end of your bargaining spiel.
• Try the walk away method. If the price was right, the seller will stop you from walking away. Naturally they are trying to get as much out of you as possible so don’t be the weak link. Hold your ground. Sometimes you will lose and your walk away bluff will result in you losing the item. Most of the time, however, the negotiations will reopen as soon as you take your first steps.

It is supremely important to stick to a deal once you make it. You don’t want to be responsible for making your whole country look bad by going back on a deal. Despite what anyone tells you, you are somewhat of an ambassador for your homeland. While some sellers overseas may change a deal once it is made, it is important to always uphold your end and take the high road. It is not at all uncommon in Central Asia and other nearby regions for a deal to be reached and then, as the product is being delivered the deal will change. Keep a level head and don’t ever give in to someone who breaks a deal. For example, we set a price for a cab ride in advance across a section of desert in Uzbekistan, as is the custom. Mid way across the desert, to no one’s real surprise, the driver pulled over and demanded more money to finish crossing the desert. When something like this happens, even if it makes your life a bit more difficult, you have to hold your ground. If they really won’t honor the original deal, get out of the car with all of your belongings. Someone else will pick you up. If you do pay someone extortion like that you make it worse down the road for the next guy, and make the scam artist a life-long fan of continuing this practice. We forced a driver to pull over and got out with all of our gear, leaving him with nothing for driving us half way. He could either stick to the original deal or get nothing. Naturally, he got us back into the car and we paid the original price. He tried the entire drive to get more money out of us, which is always annoying, but sticking to something you shake hands on is important as a person, and as a representative.

One of the most common questions we get is about financing our travels. We left Shanghai, our apartment there and our jobs in May of 2009. It is now July, 2010 and we’ve traveled for over a year. It is a fair and understandable question when people ask if we are secret millionaires or if we recently inherited some money. The answer to both of those questions is a firm, “no.” How we make our money is simple.

Website funds:
We make some money on our website, but to be honest we spend a lot of time and money on the site so we do only slightly better than break even on that. Some costs associated with the website include: the hosting fee ($250 for two years, roughly) our pro flickr account ($25 a year) and the amount of man hours put into developing and maintaining the site and the blog. We make money on the site by selling some ad space on the blog, which is unobtrusive and we are very particular about who we will allow to advertise on our site. We turn down some offers for cash in exchange for links simply because the products would not match our reader’s interests or have anything to do with traveling or quitting one’s job.

Income:
Lauren makes money as a writer. She has a few solid contracts that help her make enough money to travel full time as well as cover her college loan payments each month. Meanwhile, Mike was able to save more than half of his earned income in 2008, meaning he is living off his savings. Considering we both made less than $30,000 in 2008, it is possible to travel for cheap on savings if you don’t spend money on frivolous things, or live above one’s means.

Lifestyle:
One of the main ways we save money is to live well below your means. We do this by living overseas, where we don’t have cell phone costs, or outrageous cable and internet fees. We don’t have an overpriced apartment, car payments or insurance fees due each month. Essentially, the money we spend each month living abroad is the total of our food, transportation costs and apartment. We live like the locals do (lower-middle class locals) and save a bundle by avoiding expat eateries and entertainment. For a month in Shanghai we were spending a total of around $350 each, counting everything from random purchases to rent to food costs. If you make $20-25,000 a year and only spend $350 of that each month, you are looking at quite a savings over time.

Traveling versus Staying Home:
Meanwhile, traveling full time is cheap because your only costs are lodging, food and transportation. Often, people spend most of their travel money on lodging, we avoid this by camping whenever possible or staying at hostels for less than $15 a night. In Asia, we spent around $6 a night and that often included dinner. We spend, on average, around $6-700 a month traveling full time abroad. These costs are higher than would be necessary if one traveled more slowly. However, most of these funds went to train and bus tickets. When we were moving slowly we spent roughly $500 a month. For most Americans, that is far less than they spend a month living in an apartment or home with a dozen or so monthly costs.

As many of you know, we’ve been busy preparing for the upcoming Mongol Rally. In so doing, we’ve been looking for a lot of equipment. We found a pretty sweet website called DiscountCoder.com that gives you discount coupons on a lot of great sites, from food to tools to Amazon, etc. This includes some of the biggest retailers across the UK! If you have ever shopped online and noticed the ‘enter discount code’ option on the website, then you know what I’m referring to. This is the best place in the UK to go for discount codes, and its helped us a great deal in buying stuff for the rally on a shoestring.

If you live on a dime (or on a pence, as us Yanks assume the Brits would say) then this is a great resource for you. They have deals on computers, discounts on clothing, ‘kids eat free’ discounts at restaurants and similar deals. They have discount codes on everything! You can even sign up for a weekly email of deals and coupons in the UK. It is categorized smartly, including a top ten section, or the ability to search by category. Its so smart, in fact, that even the Britannica has a discount code!

You’ll find amazing savings and discount codes on Thomson Discount Codes that will end up saving you hundreds every year. Check it out, give it a try, and let us know if you like it too.

Mercy Corps Mongolia helps these folks

Last weekend I saw an episode of Conan on Late Night where Ben Stiller wore the stillerstrong.org headband. It made me realize our targets in fundraising have been grossly underscored. While they are ripping off Lance Armstrong’s Livestrong philosophy, it still seems to be raising an astronomical amount of funds. I feel like all I need is one big celebrity to get Mercy Corps Mongolia a crap-load of money for their good deeds back on the old’ Steppe.

We want to raise a ton of money for our charity and for our team, and if any celebrity out there still has the balls to take on Ben Stiller and Lance Armstrong to fight for the greatest charity (and the coolest team in the Mongol Rally), then don’t hesitate to contact me. I’m more than willing (and capable) of standing up to these Hollywood giants to fight the celebrity charity stand-off this Christmas season to win it all for Mercy Mongolia and for the Mongol Rally and Abandon the Cube. Bring it on, Hollywood!

Uzbek CYM

One of the strangest, and most frustrating things about traveling in Central Asia has been the double standards related to costs. As Americans we take for granted the amazing equality we have inside the country. True, we have problems, but one would never walk into a museum and be charged a different fee because of the color of his skin. That is not so in Central Asia.

In Uzbekistan, for a local to get into the Registan it cost 200 CYM, for a foreigner it costs 7000 CYM. Similarly, to get into any sight in Khiva, a foreigner must buy a city-wide pass that costs roughly $7 USD while locals can pay to enter whatever exhibit they want for free or for pennies on the dollar. Can you imagine the same practice in the US?

For a local in Turkmenistan to get into the underground lake it costs 3 Minat, but 30 Minat for a foreigner. (Thats the difference of $14 USD). We drove over an hour to reach the underground lake only to be rudely shoved aside by a guard who demanded fistfulls of cash. In this stubborn instance we turned on our heels and left the park, a $14 USD difference is not only unethical, its downright discriminatory.

And cash is not only demanded at ridiculous sums, its sometimes simply taken. In Kazakhstan we  were hassled by police, guards and railway attendants who demanded money, and when it wasn’t give they patted us down and took it anyway. A strange way to treat a visitor.

On your customs forms in Central Asia you have to list how much you are bringing into the country. We’ve heard of other travelers who didn’t report all the cash they were carrying, and as a result corrupt guards simply took the extra cash and laughed away all complaints. On the other hand, if you do list how much money you have you will get shaken down by one of the custom’s officials pals. Catch 22. We stick to withdrawing small sums out of ATMs, though even that is tricky.

Don’t get me wrong, I love traveling here, but the money issues are a bit annoying, and it really makes me appreciate the countries we’ve visited that don’t discriminate based on country of origin.

Naturally, some of you are wondering how we can afford to be unemployed and yet pay for train tickets all over the continent. Here is how I afford my share of the travel expenses. Mike has saved for over a year to pay for his half while I saved less and am working from the road.

I have one writing contract, which I acquired in the summer of 2008, which pays around $500USD a month. I have a good working relationship for the company, and because of my tenure with them, and because I turn in assignments on time and with additional features, I am confident the relationship will continue indefinitely. However, I have a contract which stipulates a one month notice should they terminate, giving me one month to find another contract should this one expire.

I also do a bit of travel writing for an online travel and trip planning company. I work on an assignment basis which produces an average of $150USD an assignment (roughly every other month). More importantly, this is a link for me to build new contacts and a gateway to future contracts.

I have also been writing, on a by-article basis for an online magazine, which pays a confidential amount per article and is based in Thailand. My relationship with this company is great, and they love that some of their writers are also on-the-road travelers.

In addition to this, I am a frequent visitor to various online writer’s boards where companies pay by the article or by the word for content on various topics. Because of competition and constant undercutting, many writers do not get paid as well as I do. I work to cultivate working relationships with people at each company to ensure my stability with them, but also because a writer is more than the content they produce.

In addition to the above, between March – April of this year I earned a 100 hour TOFEL certificate which will enable me to teach in any country in the world for profit. Should we run into financial troubles or decide to settle in a place for a while, this will be an additional source of income.

Thus, while I am not making a fortune right now, I am breaking even and traveling the world, which is more than I could have asked for. I do have some University loans that cost me about $200 USD per month to maintain, but I put away savings expressly for this purpose beginning in early 2008 so that I would not have to worry about my loans until the summer of 2010.