Doing More with Less


Doing More with Less.

How I saved $15,000 in 15 months on a $29k Salary 21

Posted Aug 09, 2013 by Clayton B. Cornell In: Travel Tips


You don’t have to make a ton of money to save for long-term travel.

“Don’t wait around. Don’t get old and make excuses. Save a couple thousand dollars… get a world atlas. Start looking at every page and tell yourself that you can go there…Are there sacrifices to be made? Of course? Is it worth it? Absolutely. The only way you’ll find out is to get on the plane and go.”
-Jason Gaspero in Vagabonding

One of the biggest mistakes would-be travelers make is assuming that long-term travel requires a great deal of money, and that you’ll never be able to save enough to afford it. This is the ‘deferred life-plan’ concept in a nutshell:  I won’t have enough money to travel until later in life when I retire, or maybe when I win the lottery, or sell a company for $10 million.

This is a bogus framework. You don’t need a lot of money to travel, and as a result you can save enough very quickly.

It’s just a matter of priorities.

After graduating from college in 2005 I spent 6 months trying to figure out what I wanted to do with my life. It was a period of high personal development, but before landing my first job my checking account dwindled to roughly $500.

Fast-forward fifteen months and I’d saved $15,000 on an entry-level salary of $29,000 a year. $15,000 may or may not sound like a lot of money to you, but at the time it was a small fortune and proved more than enough to fund a 1-year round-the-world trip.

It wasn’t until recently that I realized how simple, effective, and repeatable the process is. It’s budgeting 101, but something most people struggle with, mainly because it takes a lot of work.

But it’s a process I still use to get a handle on money and make things happen.

Here’s how I go about it:

#1 Realize that saving money is about priorities, and audacious goal-setting.

When I started this process, I wanted to spend a year traveling more than I wanted anything else. This is the single most important part of my plan of attack. Once you have an audacious goal all the details simply fall into place.

Find a goal that’s so compelling it’s visceral: the vision of standing next to a glacier in Argentina (above), cycling through the French countryside, or surfing the entire Pacific coast from top to bottom are examples of dreams I’ve had that almost bring tears to my eyes.

Once you have the goal there’s an implicit understanding that every dollar saved now is a a dollar available for Pisco or bus tickets later. When I’m thinking about perfect waves at some secluded destination it’s much easier to forego a great deal of mindless spending that typically goes on in the USA.

#2 Take stock by creating an asset inventory.

The next task is to write down (paper, spreadsheet, or Mint.com) all the money you have, in every account: checking, savings, CDs, money market funds, all of it. The first time I did this, it wasn’t much.

Then you have to ask yourself: how much of your net worth can be applied to a travel fund?

In this example, since most of my savings were locked up in retirement accounts the answer was basically $0. I also didn’t really have any assets to sell, like furniture or a car I was ready to part with, so I started from scratch.

Fortunately, I didn’t have any debt (and still don’t). If you have debt, read I Will Teach You to Be Rich and make a plan to get the hell out of there.

But all you’re trying to do in this step is figure out what the baseline is and what, if any, cash can be immediately applied to your savings goals. These days Mint.com makes things a lot easier than the first time I did it.

#3 Find your baseline budget by writing down all expenses.


The next step is to write down every dollar spent, every day, for 1 month.

Ramit Sethi will laugh at me for this, but it works. Like anything else, the only way to become fully conscious of what’s going on is to carefully track it. You don’t have to do this forever, but it’s so effective that the first time I continued recording my daily expenses for 6 months, and it’s a simple technique I use today whenever my finances start to feel out of control.

The answer to “how do you travel so much” turns out to be not that sexy. 

Yes, it’s time-consuming and a total pain in the ass, but data-collection is also a generally useful skill: any time you want to make change in life you have to first record, then plan and execute, then re-measure. It doesn’t matter if we’re talking finances, business, or fitness: you have to get comfortable with data collection to get started.

As you can see above, every day I wrote down all expenses–I did this in a simple graph-paper notebook–then I tallied up the total at the bottom. During the day I’d use a small pocket-sized notebook and transfer expenses to the graph paper each evening. At the end of the week I reviewed the total I spent and the total by category (ie Food, Rent, Coffee, Clothes) etc.

At some point I may have plugged all this data into a Google spreadsheet. There are numerous online tools to do this automatically for you today (eg Mint.com), but the key is to keep it simple. In my opinion, the act of writing things on paper is more effective than glancing at an online feed.

#4 Create a budget and plan of attack.

Once you have a month of data it can be surprisingly easy to cut costs. Oh, I’m spending $200 a month on beer. Hmm..

Now that you know how much is going out the door, the trick is to a) cut as many fixed costs as possible, b) determine exactly what you can afford to save for your travel bankroll and c) decide what’s left that you can use to pay for variable expenses, and d) automate everything so you don’t have to think about it.

Based on what you’ve written down in step 3, it’s easy to create a budget around the three categories:

  1. Current Fixed Expenses: Rent + Utilities, Cell Phone, Car Insurance, Health Insurance
  2. Target travel bankroll
  3. Current Variable Expenses: Food, Gas, Alcohol, Clothing, Entertainment, Gear, Misc, etc.

1. Fixed Expenses

It’s easy to tally these up: what do you spend on rent, phone, car insurance, etc? The real trick is figuring out which of these you can drastically cut.

The biggest X-factor in my budgeting success for the original experiment was location: I was living in the small college town of Corvallis, OR. My rent at this point in my life was only $375 / mo. including utilities, because I lived in a shared apartment. I opted to throw out my cell phone and make calls with Skype (it may have actually been a Vonage wifi phone) since anyone I wanted to get in touch with was geographically close to me. I drove a cheap vehicle, so I dropped my car insurance down to the lowest possible tier. I was younger, so health insurance didn’t cost much.

As I said, it’s much easier to make these kinds of ‘sacrifices’ with a clearly defined mission: when you know the extra $50 a month is going directly into a travel fund that you’ll be using next year.

If you’re thinking this is impossible because you live in an expensive city: I followed the same plan of action 3 years later in San Francisco. The cost cuts were just as dramatic even though the overall budget was massively inflated:  $1300 / mo rent down to $700, for example.

Some things to consider: moving to a cheaper apartment, lowering your insurance coverage, and dropping to a cheaper cell-phone plan. A few big wins here can add up quickly, but you really have to be honest about needs vs wants. I got along just fine without an iPhone before they were invented (NFW!).

2. Target Travel Bankroll

Originally, I had no idea how much to save for travel, so I estimated $15,000 would last me for a while. This turned out to be a surprisingly good estimate, but it lasted much longer than I would have thought.

A note on travel budgets: I’ve found that $50 a day is a great place to start: $1500 a month should cover you almost anywhere, although I’ve only spent an average of about $1,200 a month.

The point is to make a specific target, whatever that may be, then divide that by the number of months until you leave. In this case a target of $15000, 15 months, so $1000 a month. Yikes.

3. Variable Expenses

Consider these the dregs of your budgeting efforts. Anything that didn’t make the first cut.

How many times a week do you need to eat out anyway? Did you really need the 5 DVD at-a-time Netflix plan? And absolutely get rid of Cable TV.

This is where having fixed expenses and the travel bankroll established makes it easy:

Money left over for Variable Expenses = After Tax Earnings – (Travel savings + Fixed Expenses) 

Once you have a ballpark number for variable expenses, go back and allocate it by category. So maybe $100-200 a month for bars and eating out, $300 for groceries, etc.

But the important thing to remember is that if you allocate $100 a week to entertainment/booze/whatever, once the money is gone you don’t spend any more on that category. In my example here, after I spent this I just didn’t go out. Or I’d go out and only drink soda water, whatever I could do to cut costs.

This isn’t asceticism, it’s prioritization. It’s conscious spending.

So what if people think you’re cheap. They don’t realize you’re trading 10 units of fun now for 50 units later.

Putting it all together + My Example Budget from 2006

The first time I did this, my target to leave was about 15 months away, so I needed to save $1,000 a month, or about 40-50% of my after-tax income. I knew I could do it because I had the numbers on paper. All I had to do was show up for the next 15 months.

This is roughly what it looked like:


  • $2200 net takehome

Fixed Expenses:

  • $375 – Rent
  • $35 – Car Insurance
  • $30 – Skype/Wifi Phone
  • $100 – ‘retirement’ savings (Roth IRA)

Travel Savings:

  • $1000 per month

So $540 + $1000 = $1540 per month. That left $660 per month for variable expenses.

Variable Expenses:

  • $300 – Groceries
  • $100 – Bars/Entertainment
  • $50 – Gas
  • $100 – Gear
  • $110 – Misc

Yep, I wasn’t balling, but I had plenty of leftover cash to cover the bases.

Most people will have much larger numbers in all of these categories, and these days I do too. But it’s really about properly managing money in vs money out.

#5 Automate the system so you don’t have to think about it.

After a few months following the budget it was easy. I knew how much I generally spent on different categories, and I developed a more intuitive feel for how I was doing.

But the most important thing you can do to solidify this routine is automate the whole system.

I have a fully automated financial system now, but the first time I did this I logged into my checking account and set up an automatic-transfer for the day after I got paid. In my case, I was getting paid once on the last day of the month, so I set up an automatic transfer on the first from checking to savings of $1000 per month. This secured my travel savings as a top priority.

The key is to quickly and automatically funnel money you don’t want to spend out of reach.

Next, I paid my rent on the 1st and set up all my other  fixed income bills besides to pay automatically on the 1st using my airline miles reward credit card. I always paid the credit card off monthly, never carrying a balance, so I earned a bunch of frequent-flyer miles (and credit) through this is as well.

Since all savings and fixed costs were taken care of, anything left went to variable expenses. I lived on rice and cheap vegetables for a while, but it was worth it.

Conclusions after 2+ Years of Traveling

I’ve now used this 5-step plan 3 times since 2006 to save money for both travel and other goals, and it wasn’t until recently that I realized this is just a standard operating procedure. You may think it’s ridiculous that I wrote it all down, but I’m blown away by how many people I’ve met that don’t get these fundamentals. I’m also blown away that I was resourceful enough to save $15000 while making a salary below the poverty line in many parts of the US.

It reminds me how much is possible with the right priorities and plan of action.

So make a plan, save some money, and get out there.

For more, check out the most down-to-earth book on how to manage your finances : I Will Teach You to be Rich.

How do you manage money?

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16 to “How I saved $15,000 in 15 months on a $29k Salary”

  1. Anouck says:

    Makes even more sense to me why I’ve been so hopeless at this , I hate data collection I think in some way it’s a fear of time escaping ( aging ) and facing that fact . I haven’t filled my logbook in years . So I have to find a way to make this a game or something like that . You do give me some things to think about and I’m hopeful i can make some changes , because there’s one word i hate even more than data collection and it’s IMPOSSIBLE !!

  2. Anouck says:

    I lived for 8 years making less than a $1000 a month , and i lived in San Diego, Las Vegas and Seattle of all places . 1992 to 2000. Didn’t have your organizations skills but you can’t really spend the money you don’t have and i only had a $300 secured card . Those weren’t all good times but most were .

    • Clayton says:

      It may be another one of those cases where the people who are good at it tend to enjoy some aspect.. like being a total numbers nerd. But the most fun I’ve had has tended to be making due with fewer choices. Stricter budget, fewer choices, and in no way related to enjoyment of the experience.

  3. Clayton says:

    Btw, a friend pointed out that my net take-home may have been less than $2200 on a salary of $29K due to taxes. I think she’s right, but I couldn’t find my original pay stubs. Actual take-home could have been closer to $1900 a month.

  4. Jen says:

    Your articles have been incredibly helpful. I was also one of the nonbelievers that thought all people who traveled extensively were rich. I found that I was always happier when traveling but was never able to find a way to turn it into a tangible lifestyle.

    So THANK YOU for this. Maybe someday once I finally get out of this 9-5 hell hole our paths will cross.

    Happy trails!

    • Clayton says:

      As Michael Covel reminded us the other day in a presentation I attended: “we’re all going to die”. Every minute you spend doing something that doesn’t get you closer to your goals is lost. So don’t wait too long to get out of that hell-hole! Make an escape plan and get out of there!

  5. L.R. says:

    Hey Clayton!

    Thanks so much for this inspirational post. You’re actually doing what so many of us dream about!

    I recently read IWTYTBR and have also read a bunch of the work of Mr. Money Mustache. I began to treat my car loan (which seemed perfectly reasonable when I took it out) as the debt emergency it really was; threw money at it until it went away. That monthly money is now going into a savings account.

    For better and worse, I’m not miserable at my job, so even though your lifestyle is incredibly appealing, I haven’t yet prioritized taking the steps to get there. But I’m heading in that direction!

    Thanks again for publishing this stuff.



    • Clayton says:

      I will teach you to be rich is a great book. Having a simple grasp of money in money out and budgeting has always been a big part of my thinking (since I was a kid), along with some visceral reaction against going into debt.

      There is nothing wrong with having a great job. I’ve had several. Ultimately, this lifestyle is more about time ownership than travel. Do whatever you want with your time.

      Thanks for the comment!

  6. Skyler Wes says:

    I’m in the process of doing just this. So far I have about $11k in my bank account. I use to spend wildly without restraint (I think I use to spend $400 a month just on booze and bars), but now I’m learning to be very responsible, smart, and even sly about my money now. Right now I make about 2 grand a month at a basic factory job, I have rented a 100-year-old gicantic house in the old disctrict, so the rent is dirt cheap, and then I rent out all the other empty rooms, thus I pay no bills, roommates pay for everything since I give them a flat rate, $300 all bills paid, and it’s still very cheap for them. So the only bills are insurance ($30 a month), cell phone ($40 a month), gas, food, and entertainment. I use mint.com to budget, only spend 50 dollars on booze and bars a month now (just to keep my sanity staying in one place for so many months). And I’m putting close to 1300 dollars a month in my savings. To save money, I do p90x at home to save money on gym, traded in my jeep for an economy car, and now that I eat healthier and cook my own food and rarely eat fast food I save a ton on groceries. I will be leaving in about a year, possible hit West coast Europe and move East. I really enjoy your site, you are one of the more intelligent urban nomads, and your writing is well organized and put together, and I got to give it to you.

  7. Sukyung says:

    Hi, may I ask how the $15,000 budget worked out for a 1-year round-the-world trip in regards to plane tickets? You might have a separate post for this, but I’m a bit lazy to look for it right now. Haha. Anyway, plane tickets might’ve been cheaper back then but I’m still wondering how much of the $15,000 went it to plane tickets and how many countries that covered? Some countries are cheaper so I figured cost of food, hotel, etc would be super affordable… and of course volunteer, couch surfing is always an option for a free place to temporarily stay at. But my main question is the price of plane tickets. I’m still in college now and reading this really made me feel much more positive about my plan to travel in as many countries and cities as I can. I’ve always felt like it’s impossible since I’m a first-generation college student and that it would take me a miracle to be financially able to support myself, family, and dreams of traveling. This post definitely changed my mind! Thank you.

  8. Jessie says:

    I just wanted to thank you for sharing your saving process with me.I felt very inspired and motivated after reading this, it wasn’t a boring read at all! I’ll be attempting to follow the same plan but the 15k is for debt.

    Thank you so much!


  9. David says:

    Wow, i cant believe you have 29000 per year and 2200 home net pay.

    Here in Holland i have 43000 per year and 2100 home net pay.

    I need to get my ass to America.

    • Well, don’t you guys get to go to school for free and get things like universal health care? But yeah if you’re young and health and graduate college without debt in the USA it can be a great situation to be in.

  10. Jess says:

    I am really interested in travelling the world and going to LEDC’s as well as MEDC’s….I’m only 14 but I would love to take up travelling as a hobby as well as a career choice, my aim in life is to be remembered. I really want to publish books about my travels and perhaps if I am able to then have a documentary of my travels to show people who can’t travel the world what some of the poorer countries are really like. I need a bit of help in the sense of what subjects would be best to take fore GCSE’s and how I can achieve my goal?

What do you think?

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    spartan traveler My name is Clayton.
    I've been traveling full-time since mid-2011 while building a business on my laptop. SpartanTraveler is my personal blog of uncommon travel adventures, logbook of travel hacks, and forum for thoughts on lifestyle design and working in the 21st century. You can get updates from the site by signing up with your email address below. Feel free to reach out on Twitter (@spartantravel), , Instagram (@spartantraveler) or contact me / read more about the site.

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