How much money to have on hand on a round-the-world trip is a difficult question to answer because everyone travels differently, but it can be put into perspective if you ask yourself a few questions:

How long will you be traveling? Forming (and keeping) a daily budget based on the number of days, weeks or months you’ll be traveling will help you complete your trip before you run out of money. It’s extremely easy to burn through your nest egg over the first portion of the trip thinking you still have plenty of money at your disposal, then run out before you expected to because of a series of early trip splurges.

What places are you visiting? Certain destinations are far more expensive to visit than others. For example, Europe and Japan both are more expensive (per day) than say Cambodia, Central America or India. If you’re on a budget and just want to spend more time traveling, developing nations will stretch your dollar farther. If that’s not an issue for you, European cities are some of the most beautiful and lavish anywhere. Here are some hints on where your dollar will go the farthest.

Namdaemun Gate, Seoul

How many stops are you making? If you’re looking to keep your daily expenses down, transfers to and from airports can get expensive, not to mention finding accommodations that fit into your daily budget in an new and unfamiliar city. Found something good? Might as well stick around. Also being unfamiliar with the local currency will lead you spending a lot more of it.

What level of comfort do you need when you sleep? Holing up in 4-star hotels and restaurants will drain your funds in no time. If you’re not willing to slum it all the time, perhaps think of a sprinkling a hostel or guest house into the mix. Remember, the place you sleep does not determine how incredible your trip is. Account for how many nights you just want that ocean view by offsetting it with a, shall we say, more sparse option.

Will you be dining in restaurants three meals a day or will you eat from food stalls? Street food is some of the most finely prepared and authentic food anywhere. Don’t overlook it. And don’t worry about cleanliness, you can watch the cooks prepare your food! Pepper some street meals into the daily routine. Supermarkets are everywhere in the developed world as well, though maybe not what your used to. Supermarket picnics are fun, tasty and get the job done for far less than a restaurant.

Will you be staying in big cities, suburbs or the countryside? Without fail, a downtown location in a city will be more expensive than less convenient spots. But if you plan on returning downtown you may save money on transportation getting there. Villages in the country can allow you two weeks at the price of two nights in the city.

Do you plan to participate much in adventure travel (i.e. safari, scuba diving, trekking or skiing)? These activities cost serious money. If adventure tours and excitement are the way you roll,  research ahead of time so you have time to determine whether booking ahead of time or locally is the better option.

How much overland travel are you doing and by what means: train, car rental, public buses? In the cities public transportation can be a fraction of the cost of personal service and help preserve that hard fought budget. So don’t be afraid to get on a bus. Not only can it be an experience, it will allow you to see parts of the city you may not otherwise go to. Trains are a great way to see the country but also are more time-consuming than a low-cost domestic flight. Check on your options before getting a train ticket. But don’t forget, trains usually depart from a city center as opposed to an outlying airport.

Knowing how flexible or rigid you are with you plans will give you a good idea about how much money you’ll be spending on you travels. Having a definite set of traveling needs forces you into spending extra money. For example, do you like doing a city tour in every new city you visit? No problem, but plan it in. Do you normally hit 2 or 3 museums a week? Plan that in too.

Finally, once you get a good number to go with, add 50% on the top per day and you should be covered for all the incidentals and surprise expenses.

Continue to the next section – TripPlanner for Airfare Costs