Planning a trip around the world. What does a once-in-a-lifetime trip cost?

Do you long to take a trip around the world? The magic of wanderlust, the desire for unending spaces, the sounds of the ocean, adventures, and freedom. It's the little moments that make an impression: the quiet of sunrise, joyous laughter, and powerful colors at sunset. Encounters with new people and foreign cultures leave impressions that allow you to grow – a trip around the world means living in the here and now.

Whether simple or luxurious, a trip around the world has to be planned with sufficient lead time. After all, you also have to finance your life abroad during the break. What a world trip costs and what you need to know when planning the adventure. 

Budget: What does a trip around the world cost? 

Before beginning the adventure of a trip around the world, there are various administrative and financial aspects to consider. The same is true with the monthly travel budget. Actual expenditures during the trip vary individually and depend significantly on the target destinations, length of the trip, type of housing, and individual lifestyle.

As a rule of thumb, for a rather simple lifestyle allow CHF 1260–CHF 1470 per month. In addition to the monthly budget, a buffer of around CHF 10,000 for the return or financial emergencies is recommended. In addition, there are outlays for equipment (e.g. backpack or hiking boots), insurance, and visa fees. 

Include fixed costs at home

Costs may be incurred at home while you are traveling. These must be included in the budget or avoided through organizational efforts.

• AHV Contributions: As long as you maintain your civil-law residence in Switzerland, you are obligated to pay AHV contributions even when traveling around the world. Missing years of contributions can lead to pension reductions.
• Taxes: Remember that taxes are applied retroactively. In the year of your trip, you pay taxes for the previous year – make sure you have sufficient funds.
• Subscriptions: Cancel subscriptions and passes for public transport, the swimming pool, gym, newspapers, etc. in a timely manner. Doing a price comparison for a mobile phone subscription makes sense – it may be cheaper to travel with foreign SIM cards.
• Apartment rent: If you decide against terminating your lease or subletting, you have to make provisions for the rent and ancillary costs. An uninhabited apartment must still be heated a bit in winter.
• Serafe: As long as you registered in Switzerland, you must continue to pay Serafe contributions. If you sublet your apartment, the subletter must pay. Clarify these issues with Serafe AG directly or set aside the money.
• Car: From a financial perspective, in view of the trip it makes sense to relinquish the car, including the parking space and insurance. But it is also necessary to think about your return – will you need a car right away? If so, it would be worthwhile to set aside the money from the sale of the car for the purchase of a new car, or to properly store the car. 

Planning a trip around the world: A rough checklist with a one-year countdown

Planning a trip around the world takes a lot of preparation. To ensure that everything goes right, you have to allow for enough lead time. 

One year in advance 

• Calculate the costs of a trip around the world and begin to save
• Give notice, take a sabbatical, or unpaid leave? Check which options are possible with your employer. 

Six months in advance

• Terminate contracts
• Get travel inoculations
• Check passport for validity and if need be, apply for a new passport
• Book the first airline, bus, or train tickets
• Apply for a visa

Two to three months in advance

• Apply for a credit card
• Apply for an international driver's license
• Book first accommodation
• Begin a packing list

One month in advance

• Obtain travel, medical, and accident insurance
• Obtain personal liability insurance
• Request that mail be rerouted and designate someone to open your mail
• Prepare digital copies of important documents
• Annual doctor's appointments with the dentist, get advance checkups from your primary care physician and the gynecologist 

One week in advance

• Say goodbye to family and friends
• Going-away party
• Pack backpack or suitcase

Travel around the world with peace of mind thanks to travel accident insurance 

Basic insurance benefits from health insurers almost never cover accidents that occur abroad. In order to be well insured abroad, you must utilize additional benefits. Travel accident insurance policies provide the required financial protection. You can request medical evacuation or a hospital stay after an accident overseas without financial worries. However, the services included vary depending on the service provider – check these carefully before signing. 

Finding the ideal credit card for a trip around the world

It is almost impossible to take a trip around the world without a credit card – they are often required when booking flights or hotels. Particularly for long-term travel, a credit card is much more useful than just paying for things. Some credit cards offer travel insurance in addition, or cashback in restaurants and hotels. That means further savings.