How to Create a Realistic Savings Goal for Your Sabbatical

When people dream about taking a sabbatical, one of the biggest questions is: “How much will this cost?” And so many just assume the answer is “too much” and don’t bother waiting for the real answer. You will never catch me pretending that long-term travel is accessible to everyone. But it is more affordable than many people realize! If you want to set a realistic travel savings goal, you have to be realistic not just about what you can accomplish, but about what travel truly costs. Here’s how to strike the perfect balance and set your own perfect savings goal for a sabbatical.

Step 1: Understand Real World Travel Costs

Taking a sabbatical doesn’t have to be outrageously expensive. In fact, many people spend less traveling full-time than they would at home in the U.S. That’s because you can control your spending in ways that fit your budget—choosing destinations where the dollar is strong, traveling slowly, and prioritizing experiences over pure comfort or luxury.

To estimate your costs, think about:

• Destination: Where you go makes a huge difference. Southeast Asia is famously affordable for Westerners, while most countries in Europe will require much more in your bank account.
• Style of Travel: Will you stay in hostels or boutique hotels? Cook your own meals or dine out often? Your preferences will shape your spending.
• Length of Trip: The longer you travel, the more important it is to think about daily averages rather than lump sums.

I am a huge fan of the Price of Travel Backpacker Index. This is a great starting point for understanding what is the bare minimum you’ll need to get by in different parts of the world.

Step 2: Get Real About Your Savings Capacity

I know we all have times when we dread and avoid looking at ye olde bank account. (Fun fact: 36% of millennials have so much stress over finances, it’s comparable to post-traumatic stress disorder!) But if you have a big goal like quitting your job to travel, you have to look at the cold hard facts of what you are currently spending. 

Try not to judge yourself too harshly and just play with some thought experiments at first. For every expense you made in the last month, is there a way to reduce it? Once you have the maximum cap of what you could do sorted, you can start considering what you’re willing to do. 

It’s not all brewing your coffee at home either! Here are just three (admittedly kinda crazy) things I did as part of my journey saving $500 per month for travel.

• Replaced a weekly hobby with volunteering
• Used box fans instead of AC – this cut my electric bill in half!
• Sold my car

It’s also okay to adjust your travel plans to fit your budget. There’s a balancing act between the at-home side of how long you spend saving money and how aggressively you save and the on-the-road side of how long you spend traveling and how comfortably you travel.

Step 3: Track Your Progress

Staying motivated is easier when you can see your progress. I made myself a Travel Savings Thermometer and now I’ve turned it into a free tool for you! You’re not just coloring in the main thermometer. There are a ton of milestones specific to long-term travel that I crafted to make the early stages of saving money for travel feel way easier.

Download the Free Travel Savings Thermometer

Step 4: Give Yourself Grace

Life happens and sometimes saving takes longer than expected. I spent two whole years saving money for my year-long round-the-world trip! Unexpected expenses might come up or something else could require you to adjust your timeline. That’s okay. The journey of a sabbatical starts long before you board a plane. By creating a realistic plan and staying committed, you’re already on your way.

Setting a realistic savings goal for your sabbatical is the foundation of any life-changing adventure. By understanding what travel actually costs and being honest about what you can save, you’re taking the first step toward making your dreams a reality. Don’t forget to download your free Travel Savings Thermometer to track your progress and get closer to the trip of a lifetime.