I often receive emails from readers asking specific questions about family travel. Perhaps one of the most frequently asked questions is "How can you afford it?"

Figuring out how to pay for your family travel adventures is similar to putting a puzzle together. You have to combine many pieces, in the right order and in their correct place, before the full depiction will reveal itself.

The answer for financing can be as diverse as the individuals asking the question. Will it be an online business? Use of personal savings? The sale of your assets? International employment? The foreign service?

Only you can find the answer, but you'll never find it until you're willing to earnestly ask the question.

Below are questions recently asked in an email I received, and my response:

1. How can you financially afford this lifestyle? From where do you generate income that covers your expenses by excess (to save something for emergencies for yourself and the kids)?

Our income sources have varied throughout the years, and have been different for each adventure. When we drove to (we did not fly) and lived in Costa Rica, we were investing in Real Estate and the U.S. stock market. We were doing very well and making lots of money. We also spent lots of money (but that is a different story 🙂

When the U.S. markets crashed, we returned to the U.S. for a job

We could not stand being in our home country after being abroad, so we saved up as much money as we could and moved to the Dominican Republic.

We sold anything of value we still owned, and lived on our savings, and some online freelance work. We  hoped this online income would grow to a sufficient enough amount that it would support our lifestyle abroad. It didn't, and so we returned to the U.S., this time to a different city (Atlanta) to figure out what to do next.

While in Atlanta, and deciding 'what to do with our life', we were presented with the opportunity to move to India, and for my husband to take a paying position with a non-profit organization, which provided housing and transportation and a small monthly salary, which was more than sufficient to live in India. We were actually able to save a good chunk of money while living here.

2. How could you pay the round-flights to India for seven people? The same for Costa Rica and Dom. Rep.?

When we moved to Costa Rica, we drove. This was not cheap, but we were making good money then. When we had to return to the U.S., we sold the belongings we had in Costa Rica to pay for our return flights.

Moving to the Dominican Republic, we bought one way tickets. We used money from the sale of our assets (including my wedding ring). For us, traveling and living abroad was worth more than any possession we owned.

When we had to return to the U.S. again, we received a loan to pay for our one-way return flights.

Moving to India to work for the non-profit, the organization paid our flight and visa expenses - both to India and our return flights after we became pregnant with our fifth child, and decided to return to the U.S.

We moved to Alaska, because it was a place we always wanted to visit, and where my mother was now living. We spent a year there, my husband working at a job, and I building up our website, before embarking on our current adventure.

3. Have you had to work in these countries or did you have a back-home monthly income generation system in place?

Working in other countries can be very difficult. Not all of them allow foreigners to have jobs in their country - Costa Rica as one example.

If they do allow you to be employed in their country, the income is often less than what you may be accustomed to, and may not be enough to cover living expenses at an 'expat' lifestyle standard. There are of course exceptions.

We had an online income and back home income while in Costa Rica - from stocks and real estate. We had a small online income in the Dominican Republic.

As mentioned before, my husband did work in India, and Alaska.

4. On your website there are some few affiliate marketing back links (Amazon), some sponsors (three that I see so far) and maybe you offer speeches from time-to-time, your costs from your reports are around ~US2500/month, is it really possible to generate an income only from these mentioned items (Affiliate Marketing and Sponsors) to surplus these expenses and still save something for the long journey ahead?

Thus far on our trip, we have used the savings we had, and my husband has worked at odd jobs. I also design websites, which brings additional income. Our major focus is building up our online business, so that we will have that regular, location independent income. We currently make a very small amount of money from our affiliate sales. Our sponsors don't pay us anything, but they do help us to save money (free fuel and free accommodations).

We do have an emergency savings account.

It is absolutely possible to make on income online. We know several people personally who do it. One friend sells American Girl Doll clothes and lives in the Bahamas. Other friends sell watches online and live in Mexico. Some other friends lived frugally for a year and saved up, sold their belongings and moved to Guatemala to start a trail running business. Christine Gilbert (an online friend - almostfearless.com) makes her income from information products and travels the world.

We've studied online blogging for years (sites like Problogger.net and Copyblogger.com) and have been personally mentored by Adam Baker (manvsdebt.com) who makes an average of $5500 a month.

We are on that path now, working on our information product business everyday, and getting closer to the launch of our first products (within a couple of weeks). We are very excited! It's taken along time to get to where we are now.

It is totally possible to build an online, income producing, location independent business, but as with all businesses, it takes a lot of time and hard work (and for me, early mornings and late nights so I can work while kids are sleeping. I don't think I've had a decent nights sleep in over a year.) 🙂

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16 Responses

  1. Lisa-Marie

    It’s absolutely possible Rachel! Not only do we live a location independent life but we employ others who are now location independent too. When speaking to most folks I find that it is often not for lack of income that they don’t travel – just lack of real willingness 🙂 Like you say, it is not easy as you do have to build a business (and sometimes the business is a little more complicated) – but definitely possible with the right frame of mind. We take off in February for our year in Europe. Here are the websites that support it all: http://www.dollsclothes-emilyrose.com and http://www.emilyrosehomeparty.com for women and daughters (young girls) interested in learning how to do it I personally mentor folks as part of our @Home Entrepreneur Program.

    I love reading your blog – our whole family follows your adventures.

    Reply
    • Rachel

      Thanks Lisa! You are one of the ones I think of when I tell others it is possible to live location independent. You have done it!! Thanks for your example. Hopefully some will take you up on your mentoring. Heck, I might do it, as soon as I complete some of the projects I’ve got going right now 🙂

      Reply
  2. Alisa

    Thanks for sharing 🙂 It was fun to hear the trip-by-trip details of how you funded things! I’m also glad to see I’m not the only one who doesn’t think the diamond ring is all that important. Believe it or not, the ring salesperson who sold us my cheapo one recommended I save the money for the honeymoon. Good advice! Now, the lack of a showy ring reminds me that my marriage is not based on the physical things I own, but the experiences we enjoy together!

    If you honestly and openly seek an opportunity to find work, whether it be online or elsewhere…you will find it! Of course, working for yourself is a lot more demanding than working for others…but oh, so rewarding!

    Reply
    • Rachel

      Love it! So true – the ring doesn’t make the marriage.

      So true about working for yourself. Thanks for your comment!

      Reply
  3. Stephanie Nixon

    I noticed you said you design websites on the side…I am looking to update my site and wondered if we could talk, maybe get a quote on what you charge to re-do a site. You can email me when you’ve got the time. Thanks! Stephanie

    Reply
  4. Suzi

    Thanks for sharing this – it’s great and valuable information, particularly for those of us who are just setting out!

    Reply
  5. sarah

    I am not sure how I stumbled upon your blog, but I am sure glad I did. I am a huge fan of you and your adorable family! I love the way you guys are so free and driven on happyness so it seems. I know alot of people who say traveling is to expensive but as i have learned when you travel so many oppertunities come up, just by meeting people, who are more than willing to show you around and if you need work help you find a job. I just recently returned from living in the Virgin Islands for a month and am back in Utah saving money to travel to Fiji and Australia. Then after that, I am truley interested in driving from Mexico to Argentina! I am so excited to read more of your updates when you guys start passing through South America! Also when you guys get down to Guatemala you need to go to Antigua it is a beutifull town with so much history.

    Cheers and safe travels 🙂

    Reply
    • Rachel

      I’m glad you did too! What fun travel adventures you have planned. My husband has been to Antigua and loves it, so we’ll definitely be going there.

      Reply
  6. Benson Wallace

    Hi Rachel (and family),

    Just want to say I like the way you’ve been very upfront and honest about what it took to fund your travels.

    A lot of these online, location independent types don’t like to give direct answers when you ask them how they make their money, and instead brush it off with “oh, I have a few online businesses”.

    So kudos for telling it like it is. I suspect that very few people actually make it to the point where they can survive completely on their blog income.

    Personally, I don’t think I’m really cut out for running a monetised blog or selling products online (and I quite enjoy my job, but just wish I could do it somewhere else), so I’ve decided the path I’m going to take to location independence will be a combination of Chapter 12 from the 4 Hour Work Week (getting my boss used to my absence, doing my job well so that they need me, and then designing a role for myself that can be done online), and sensible property investment (I currently own about 850kUSD worth of property spread across Australian, New Zealand and Canada, but I still owe 500k on it; so it’s just about paying for itself, but I still need to work to pay for my travel expenses – and I spend a significant amount of my disposable income each year on travel, because, as a teacher, I get 10 weeks paid vacation per year).

    Ironically, if I had the money I have now 5 years ago when I was single, I would just about be able to meet my retirement goal at the time – a passive income of $15000 per year. Funny how the goal posts shift as you get older. When I met my wife 4 years ago, suddenly I was saying “if I can just set up $25000 per year of income…”, and now, as I approach 33, it’s “well, I’d better make sure I have $30000 per year, in case kids come along…”, and so on…and I wonder if the money I have will ever be enough. It’s like the pot of gold at the end of the rainbow that is always just out of reach.

    I’m also very interested in how you manage your childrens’ education. I always used to think that having children would mean the end of my travelling days. Then, I started to meet people who were travelling with young children. And I thought, OK, so you can keep travelling for a few years while your kids are young. But once they hit school age, I assumed you just have to suck it up and settle down somewhere.

    Finding your story has made me question that assumption. I mean, I’d back myself to teach my kid better and faster than the next person…and think of the languages they’d learn, and the experiences they’d have! My only problem is this – how do you give them opportunities to interact with kids their own age and make long-term friends (the stuff that happens in the playground at school)?

    Benson

    ps – I lost my wedding ring while swimming in the surf in Goa last year; haven’t replaced it yet and I don’t think I’m going to.

    Reply
    • Rachel

      Hi Benson,

      Thanks for commenting! It’s sounds like you have some great plans, and a good approach to making it happen. There are so many ways to fund the traveling lifestyle, if you just get creative.

      As for education, I agree with your point about learning from the experiences they encounter through travel. Our entire educational philosophy and detailed plan (which is difficult to summarize in a comment like this) is something I’ve been thinking I’ll blog more about. In part, I think it might help to reform the current educational systems which are failing in many ways, by providing parents with ideas for alternative approaches…

      As for ‘socialization’ and opportunities to interact – you will be surprised at how easy and often it occurs. Traveling with kids is one of the best ways to open up the hearts (and doors) of people around the world. Our children honestly make friends wherever we go – with locals, other expat families, etc, etc. It’s amazing. And already, lasting friendships have been made. We have to maintain communication via email and Facebook, but that’s so easy in today’s world.

      Let me know if you have anymore questions!

      Thanks.

      Reply
  7. Ian

    Exactly! Most people can’t ‘afford’ this kind of lifestyle because of their fixed costs ‘at home’. But should you sell all of your assets and truly live independently, then your living costs become so much less.

    Moving to live in India or Africa means that your costs are a fraction of running a home in the USA/UK/Europe etc.

    It is a matter of being brave enough to let go of the ‘bricks and mortar’ for most of us.

    Pretty inspiring stories!
    Thanks

    Reply

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