Worldly Wisdom
Michael Flack | Mar 17, 2023
A FEW MONTHS BACK, this site’s editor suggested I write an article about the “10 things I learned about money from four years traveling the globe.” I thought, hey, if someone wants to pay me $60 to write about travel, I’m in. I’m hoping he’ll next suggest I write an article about drinking bourbon.
Starting in September 2017, my wife and I traveled the world for four straight years. Travel can be wondrous. Filled with new tastes, like grilled pig rectum in Tokyo. Filled with new smells, though the less said about that tannery in Marrakesh the better. And new people, like a picnic with strangers on the Temple Mount. Along the way, here are a few things I learned.
- If you’re going to travel for four years, why pay income taxes to a state you aren’t actually living in? Start your adventure by moving to an income-tax-free state. I went with Texas. Depending on your politics, heat tolerance and affection for the second amendment, you might prefer Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington or Wyoming.
- Use a mail forwarding service—that is, of course, located in your new income-tax-free state. If you go with the great state of Texas, may I recommend Texas Home Base? For $200 a year, it scans the contents of every letter sent to your new Texas address, which you can review at your leisure while drinking a bière on one of Paris’s Bateaux Mouches.
- My global travel adventure commenced when my working life ended, so I was in a great position to sell my house. From a practical point of view, this enabled me to avoid mortgage payments, property taxes and repair costs. From a spiritual point of view, this enabled me to avoid worrying about mortgage payments, property taxes and repair costs. I could truly focus on the romance of travel and not the banality of owning a home. I traveled completely unfettered, knowing I could settle down anywhere along the way or maybe never at all.
- After selling your home, put all your stuff in a POD.
- You may want to start your adventure with a bang by visiting Paris or Tokyo—two of my personal favorites—though a more economical strategy may be to find an inexpensive airfare from where you are to any city on the continent in question. Does it really matter if, instead, you start your adventure in Munich or Seoul?
- I never planned more than one city ahead. This gave the flâneur in me the flexibility to extend my stay if I found a location particularly intriguing or economical.
That, in turn, led to two strategies. First, I tried to book rental cars and lodgings that offered “free cancellation.” That way, if my itinerary changed or I found a cheaper option—which I was always looking for—I had flexibility.
Second, after making the initial payment through Airbnb or Booking.com, and ensuring the lodgings were adequate, I would later contact the owner directly to extend. Cutting out the middleman, and possibly the taxman, can be very economical.
- I enjoyed inspecting alternatives to America’s current version of democracy, capitalism, religion and educational system—such as places where there are more than two political parties, a non-Darwinian economic system, a kinder, gentler version of religion, and an educational system that produces graduates who speak more than one language, one of which—English—is often spoken better than it is by some Americans.
More than that, though, I wanted to try out some just plain good ideas. Like transportation systems that, while not necessarily cheaper, actually work, whether it’s a bus, tram, funicular, railcar, cable car, highway, subway, plane, ferry or donkey. Like a hand-held credit card terminal that was brought to the table at the end of my meal so I could pay by credit card, while not letting my credit card out of my possession, at which point it might be copied for future credit card fraud. Like restaurant prices and bills that include taxes and tip. Well, that’s only in France, but it’s still a damn good idea.
- Keep a journal. Otherwise, it’ll all become a giant blur.
- Spend a little more than you think you should. Don’t tell my wife about this one.
- Most cities in the world offer free walking tours. It’s a great way to get to know a city, get some ideas, and maybe make a friend or two. In most cases, guides will provide you with their phone number, so you can text them for advice during the balance of your stay. While technically they’re free, almost everyone tips, in my case around $10. I like the capitalistic aspect of these walking tours: If the guide doesn’t do a good job, you don’t pay them.
I must have been on more than 20 free tours, and on every one of them, the missus and I were the oldest partakers. Maybe it’s all the walking, maybe it’s ageism, or perhaps it’s because old people have more money and therefore equate free with crap. All I know is that walking tours are a good deal—and seeing a city through younger eyes can be a real tonic.
Michael Flack blogs at AfterActionReport.info. He’s a former naval officer and 20-year veteran of the oil and gas industry. Now retired, Mike enjoys traveling, blogging and spreadsheets. Check out his earlier articles.
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Years ago we took a trip to Italy arranged by a European travel agent. As part of our package we immensely enjoyed private tours of Pompeii (with an archeologist), and tours of the Vatican Museums and the Colosseum. We could hear better, and were able ask as many questions as we wanted without feeling like you are dominating the guide’s time as you would on a group tour. This year we are heading to Greece and have booked tours of the Acropolis and museum as well the sanctuary of Olympia with Tours by Locals. So far they have been really responsive, and flexible regarding customizing our tours. Will report back in June on how the actual tours went. Oh yeah, and in Olympia the guide arranged for a private dinner cooked by a local in their home.
David Lancaster, thanks for your comments. It looks like you’ve been a part of some excellent tours.
“an educational system that produces graduates who speak more than one language, one of which—English—is often spoken better than it is by some Americans”
You have been reading Twitter and YouTube comments again, I see.
Nate Allen, hmmmm? Not sure what you’re getting at, though it reminds me of my two weeks in Vienna: a few days after checking in to the Hotel Maria Theresia (highly recommend by the way), I had reason to ask about a billing issue. So I went early one day to the front desk and said in my best sounding German “Morgan”, and the young lady behind the counter replied, in impeccable English, “How may I help you, sir?”
Ahh…that was your mistake – speaking German instead of “Austrian.” The correct Austrian greeting is “grüß Gott” (groyce gott). Joking aside, I had the exact same experience at my hotel in Vienna. Such a great city to visit.
Jamie, appreciate your feedback. Next time I’m in Vienna I’ll give “grüß Gott” a try, though I may still need to work on my accent.
One of the best posts on Humble Dollar. Such a fun read.
Purple Rain, thanks for the kind words.
I like your planning on changing your residence to a state without a state income tax before starting a multi year travel adventure. Some states with an income tax make the formalities of changing your residence sticky if you fail to take certain actions like-
I would check the rules of both the state you are leaving and the state you are establishing residence in to avoid unexpected tax problems. Selling your residence in your prior state is likely a key action to ending your state residency status.
Happy travels.
Good point, and even the actions listed may not be enough. Unfortunately you don’t know until the former state tells you they’re not and says you owe them income tax.
Possibly a more difficult but certainly more solid approach – actually live in the no income tax state for a while before you leave the country, and then avoid actions that could signal a change.
William Perry, you make a very good point. Changing residency to an income tax free state may require a fair amount of work.
Congratulations on the four years. I took early retirement in 2000 so I could travel, but I didn’t sell my house. I did get in a lot of travel, including four RTWs (two in each direction, I need to do a tie-breaker…)
A few additions: besides considering taxes and the mail, you absolutely need medical and medical evacuation/repatriation insurance and the state you pick as a base may affect that.
A travel blogger I follow just reported that it is no longer as easy as it was to go without plans – more countries are requiring proof of onward travel. I believe accommodation is becoming more difficult to find at the last minute in popular places.
I use an AA-affiliated credit card so I get miles for all my purchases, which has allowed me to do the trans-Pacific flights in business class.
I haven’t used a rental car since 2004, instead I use trains, buses, shared taxis, an occasional car and driver (in cheap countries like India and Romania) or an occasional tour in the middle of a long trip (Rick Steves for Europe, Intrepid for Asia).
It’s not only France where you don’t need to tip, or only tip a few coins. That’s especially true of Japan. And I don’t know anywhere outside the US that adds tax to the prices on the menu.
Besides free walking tours, in many places there are free volunteer guides who will show you their city (I was taken to a moon viewing ceremony by one in Kyoto). Guidebooks or tourist Information centers should have details.
Looks like you are now traveling in the US, any plans for more foreign travel?
mytimetotravel, thanks for the comments!
I don’t use “medical evacuation/repatriation insurance.” I guess I’m rolling the dice, but I self-insure. Never ran into having to show “proof of onward travel.” – this may have since become an issue. Note: Once you enter the EU (Schengen area), you never need to clear immigration again. I like my Capital One Venture credit card at 2% back. I too prefer not to rent a car overseas but I needed to use one in Normandy, Croatia, and Morroco. Note: European train travel is quite efficient and civilized. I used a volunteer guide in Chicago – excellent – though I like the “free” tour as it exposes me to the young folk (the under-40 crowd). I have been traveling intra-US lately (AfterActionReport.info), though lookin’ to get back to the EU in late spring/early summer. Where would you recommend?
I can’t wait for your article on bourbon!
Jack Hannam, I’m still working on the initial draft, though it appears substantial research is still required.
Michael, since you started in late 2017 and traveled for four years, you were traveling through the outbreak and height of the pandemic, when much of the world shut down. Were you able to avoid getting sick and using local medical care in your various destinations? How were you able to navigate the travel restrictions? How did it alter your choices, if at all, about where to go next and how to get there?
Mike Gaynes, I was back stateside when covid struck, so I spent the balance of my travels crisscrossing the country in search of that perfect retirement location. You know that city with great culture, first-class healthcare at a very low cost, low taxes, with cheap housing located on a beautiful beach. All, of course, located in a state with the correct politics.
It may not have been the wisest course of action, but it did allow for very economical lodgings and gas prices.
While in the US, never required medical care except for vaccinations. Overseas had to go to the emergency room twice for very minor issues – where I received first-class service at a fair price.
I can’t match four years of travel, but we did travel every year since I retired in 2010 until the pandemic.
I sure agree about speaking English. Many people, especially young people, speak better than many Americans. The only country where I didn’t find that was Russia.
Never been to Japan, but I do love Paris and Portugal is probably my favorite country.
Got into a big argument in Italy when the waiter demanded a tip even though a fee was added to the bill.
I paid to ride a camel in Morocco and then the owner demanded more when I got off. No idea what he was demanding, but I handed him a handful of coins to get away.
How I miss travel.
R Quinn, I agree, you can’t go wrong with Paris or Portugal.