Is this realistic for us? please help!

[greeneyeddreamer]

Me and my best friend have decided that backpacking across Europe is something that we REALLY want to do, it's a dream. However, we are not the richest of all people and have a lot of financial priorities. For example, I'm currently in my last semester of university and soon will have to start paying back three years of student loans. My best friend, is in dire need of a car (so she can maintain her 2 jobs) and is looking to get one soon. Actually, we both have 2 part time jobs.

So with that being said, we really don't want to be held back from going to Europe because of our situations so we are hoping to go (if realistic) in Spring or Summer of 2009, giving us over a year to save.

We really would like to go for about 4 weeks - 6 weeks and would like to visit London, Amsterdam, Spain, Switzerland, France (Paris and Nice) and many cities in Italy. Would love to go to Greece if possible too. Traveling with a Euro rail pass and sleeping in hostels, and wantin to see attractions like the Colosseum and the Louvre.

Honestly, is this a realistic dream for us? how much do you think we will need to save to do this?

any advice would be GREATLY appreciated!

[WillTravel]

I would ballpark your proposed trip at about $6K USD, for all your expenses, for each person. I would start saving like mad (and working like mad if you can), and then you can reassess how you are progressing towards your goal by the fall.

If you don't make it in 2009, you will be able to make it sometime, if you just keep doing your best.

[greeneyeddreamer]

willtravel said:

I would ballpark your proposed trip at about $6K USD, for all your expenses, for each person. I would start saving like mad (and working like mad if you can), and then you can reassess how you are progressing towards your goal by the fall.

good! $6000 - $7000 is what we had planned. We both work at a bar, so we can save that JUST from saving our tips for a year. But we were planning on saving more than our tips so Im really excited to hear that.

woohoo!

[Eagle]

greeneyeddreamer, I agree with WT, US$6-7K is a realistic estimate for a six week trip. However, you might want to save a bit more (if possible) so that you have a "cushion" for unexpected expenses. If you have a credit card, that would work well also.

Cheers!

[greeneyeddreamer]

eagle said:

greeneyeddreamer, I agree with WT, US$6-7K is a realistic estimate for a six week trip. However, you might want to save a bit more (if possible) so that you have a "cushion" for unexpected expenses. If you have a credit card, that would work well also.

Cheers!

I was hoping to have my credit card completely paid off by that time so it would give me about a $2000 back up money.

$6000 isnt my goal, its just what I had estimated. I would like to save as much as possible with $6000 being the minimum.

[pointofnoreturn]

Definitely DO NOT use your credit card in Europe, just so you know. Bring it with you for emergency purposes. Using an ATM card is much cheaper although it will help to have a 2nd ATM card as backup.

I think you will be fine with the amount of money you have

[greeneyeddreamer]

pointofnoreturn said:

Definitely DO NOT use your credit card in Europe, just so you know. Bring it with you for emergency purposes. Using an ATM card is much cheaper although it will help to have a 2nd ATM card as backup.

I think you will be fine with the amount of money you have

Really? whats so bad about using credit cards overseas?

[pointofnoreturn]

You have foreign currency conversions tacked onto the amount. Plus if you use your credit card to withdraw money from ATMs, it's even worse.

Not to mention, sometimes, shopowners might try to scam a bit of money out of you by using dynamic currency conversions.

[greeneyeddreamer]

Ahh okay I see, I guess its still okay as emergency money though.
I was jut thinking, Visa - accepted everywhere slogan (or is that Mastercard? haha) that got my thinking its a good backup.

[WillTravel]

I think I come out slightly ahead by using a credit card. But this only applies if you pay your balance off every month.

The reason is that my bank adds a 2.5% rate above the interbank rate for every ATM withdrawal not in Canada, and my bank also charges $5 per withdrawal. My credit cards just charge 2.5% over the interbank rate, but with no additional fee. Plus, my credit cards are linked to reward programs, and my ATM card is not. However, in a lot of places, they really don't like you using a credit card, and/or they may give a discount for cash, so you still need some cash.

One thing I do worry about is that people do get their card information stolen and used for bad purposes. But this can be resolved with a call to the credit card company, and it can also happen when you use your card back home or online.

[Eagle]

greeneyeddreamer, I find it's a good idea to have a credit card for unexpected expenses, and for things like Hotels, Car rental or purchase of "special" souvenirs. I try to avoid using it if possible, and pay for most things with cash.

Some Hotels (especially smaller ones) prefer travellers to secure the reservations with a credit card, but pay for the room with cash at the end of the stay. That way they avoid the 2% (or whatever) fee charged by the credit card companies.

Of course there will be currency conversion charges applied to each transaction, but in my experience the rates charged by credit cards are about the most favourable one will find. The rate charged will be according to the day the transaction is posted, rather than when the charge is made.

With regard to using credit cards to obtain cash at ATM's, the transaction is treated as a cash advance and interest (often at a higher rate than that charged for purchases) is applied from the time the cash is withdrawn. Some people avoid the interest charges for cash withdrawals by "pre-loading" their credit card account, so that it has a credit balance.

The best way to determine what rates you'll be charged would be to contact your bank or financial institution. You might have to speak with more than one person, as I've found that not all representatives are completely knowledgeable about travel issues.

If using a credit card while travelling, it's also a really good idea to notify the bank before departure that the card will be used in Europe. If they see an unusual pattern of transactions, they could "flag" the card as stolen or whatever, and block further transactions.

Cheers!

[me]

greeneyeddreamer said:

I was jut thinking, Visa - accepted everywhere slogan (or is that Mastercard? haha) that got my thinking its a good backup.

Rena,

don't necessarily count on ads to reflect reality. in some places, Mastercard is better - in others, Visa works best. i always take both.

credit cards often have usurious effective interest charges <including the fee> for cash advances. some banks charge usurious fees to get your cash from an overseas ATM. shop around for a bank with low transaction fees.

you might find a bank with a high monthly charge, but a low <or, even no> overseas ATM transaction fee. if so, open an account there a few months before your trip. get the card & test it at an ATM before your trip to make sure it works. as there are two of you going on the trip, think about each of you signing the other up for a card of each others account. this would give a back-up card for the account.

when you get back from the trip, just close the account to avoid the high fee in subsequent months. if you're American, www.bankrate.com lists US banks. the fine print at each bank should give the info you need.

[greeneyeddreamer]

me said:

as there are two of you going on the trip, think about each of you signing the other up for a card of each others account. this would give a back-up card for the account.

when you get back from the trip, just close the account to avoid the high fee in subsequent months. if you're American, www.bankrate.com lists US banks. the fine print at each bank should give the info you need.

What do you mean sign the other up for each's account?
and no, were Canadian.

You guys are so helpful! I really appreciate all the advice

[Eagle]

David,

in some places, Mastercard is better - in others, Visa works best

That's pretty much what I found in Europe - some places seemed to "lean" towards Visa, while others featured MasterCard.

Slightly off topic, I recently became aware of an unusual aspect between the two credit cards when used in Cuba. The MasterCard products seem to be "problematic" and often aren't accepted there, while the Visa products seem to work just fine. I'm not planning to go to Cuba anytime soon, but I found this situation somewhat interesting.

Cheers!

[me]

greeneyeddreamer said:

What do you mean sign the other up for each's account?

as i'm not sure how it works in Canada, this might not work there.

in America, a checking account owner can give "signing rights" to someone else, they then have the rigght to sign checks. they'd then have the option of getting an ATM card for the account.

it's a way to get a 2nd ATM card for the account.