Money Honey! The Beginnings of Our Budget

by Melissa

How much money do you need to travel the world?  This is a question that has been plaguing me since we decided to set the date, make it public and go for it.

As we’ve discussed taking this trip over the last few years, the big topic has always been budget.  Being the right brained thinker in the family, I was really struggling to understand just how we were going to make this happen. Ryan, the data guy, had been reading up on the topic and storing the numbers in his head.  Our budget conversations would inevitably end with him saying “don’t worry, we are going to have enough money saved.  I know just what we need.”  While I trust my husband, I need to understand the numbers.  So I will be doing  a little research of my own as I am really starting to FREAK:

I don’t think we’ll have enough!

According to Ryan, $72,000 is our magic number.   This is the number Ryan feels we need in order to do this trip.  When I ask how he got this number he tells me, “Beats me, but I read that most people are traveling as a couple and they spend $100 a day, so as a family of four we will need $200 a day.”  But I think he really came up with that number because he thinks that is how much we can save in a year.  Hmmm..

Here is what we have done so far to try and get to this number.

  1. We sold our new car.  This allowed us to drop the payment, the insurance and save around $500 a month.
  2. Now that we are down to one car, I am riding my bike to work twice a week and carpooling twice a week.
  3. We are living completely off of Ryan’s income and all of my income, $36,000 after taxes, is going into savings.
  4. We canceled cable.  This saved us around $60 a month.  We are having to keep our phone and internet due to Ryan’s job.
  5. We are not eating out anymore, going bare minimum on clothing and finding lots of free activities to do around our community.

After completing all of these things our grand total by June of 2013 will be $64,500.  We have a few business ideas a brewing, which we hope will bring us $1,000 a month and help us reach our goal of $72,000.  More posts to come as we began to finalize the budget.

{ 1 comment… read it below or add one }

OurLifeExperiments December 9, 2012 at 8:12 pm

That’s awesome that you’ve taken the steps in the right direction to achieving your goals! Isn’t it exciting to save money and watch your bank account grow? I’d say good luck, but it sounds like you guys don’t need it! :o )

Maria

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