Afford Anything Podcast Episode Summary
Title: How to Travel on $75 Per Day
Host: Paula Pant | Cumulus Podcast Network
Guest: Matt Kepnes (Nomadic Matt)
Release Date: March 28, 2025
Introduction
In the dynamic episode titled "How to Travel on $75 Per Day," Paula Pant welcomes Matt Kepnes, renowned travel writer and creator of Nomadic Matt, to explore the feasibility of world travel on a modest budget. Paula challenges the idea, setting the stage for an insightful discussion on budget-friendly travel strategies, the psychology behind spending, and the evolving landscape of global exploration.
Breaking Down the $75 Per Day Budget
00:56 - 02:19
Paula introduces the bold claim by Matt that one can travel the world on $75 a day. Matt explains that this figure is derived from his extensive personal travel experiences across various continents, adjusted for inflation. He emphasizes that the budget encompasses expenses such as food, accommodation, and transportation, leveraging tools like credit card points and budget airlines to maintain the cost-effectiveness.
Notable Quote:
“That $75 a day number comes from personal experience when I traveled around the world and adjusted for inflation.”
— Matt Kepnes [00:56]
Reimagining Vacation Spending
02:19 - 05:02
Matt challenges traditional perceptions that equate vacations with high expenses, a notion heavily influenced by decades of travel advertising and media portrayals. Instead, he advocates for approaching travel with the same frugality as daily life. By prioritizing essentials like grocery shopping and public transportation over luxury spending, travelers can significantly reduce costs without sacrificing the quality of their experiences.
Notable Quote:
“It's about changing your mindset and going and thinking less about the blowout vacation and more about replicating your life.”
— Matt Kepnes [02:35]
Living Like a Local: Accommodation Strategies
05:02 - 08:00
Exploring accommodation options is pivotal in maintaining the $75 daily budget. Matt discusses a blend of hostels, Airbnbs, budget hotels, and guesthouses, selecting based on duration of stay and destination. He highlights the importance of flexibility—choosing hostels for short stays or Airbnbs when residing in one location for an extended period allows for cooking meals and further reducing expenses.
Notable Quote:
“If you're staying in a place for a week, I'm more likely to get an Airbnb because then I can cook myself breakfast on the nights that I'm tired.”
— Matt Kepnes [05:31]
Maximizing Points and Miles
08:00 - 16:05
A significant portion of the conversation delves into the strategic use of credit card points and loyalty programs. Matt advises travelers to select credit cards that align with their specific travel preferences, emphasizing that there is no universal "best" card. Instead, the optimal choice depends on individual travel goals, preferred airlines, and accommodation preferences. He warns against accumulating points without a plan to redeem them promptly, citing frequent devaluations by airlines and hotels.
Notable Quotes:
“There is only the best card for your travel goals.”
— Matt Kepnes [10:53]
“Make sure you're going to use every perk to justify the fee.”
— Matt Kepnes [10:55]
Matt also debunks common myths about the points game, stressing the importance of using points rather than hoarding them to avoid loss of value. He shares practical tips on selecting the right credit card and leveraging points to enhance travel experiences without incurring unnecessary expenses.
Notable Quote:
“The purpose of points is to also spend it because airlines change their redemption rules all the time.”
— Matt Kepnes [14:53]
Impact of Social Media on Travel
43:00 - 49:33
Matt and Paula turn their attention to the profound influence of social media on modern travel. Matt acknowledges that while social media has democratized travel information, making destinations more accessible and informed travelers better prepared, it has also led to overtourism and the degradation of previously untouched sites. He cites examples like the overpopulation of Mount Everest and the unintended damage to indigenous sites in Arizona due to viral social media trends.
Notable Quote:
“On the one hand, it has made random holes in the wall really popular, which is good… But on the other hand, it helped increase the overtourism.”
— Matt Kepnes [45:31]
Matt advocates for responsible travel, encouraging listeners to explore off-season periods and lesser-known destinations to mitigate the negative impacts of overtourism fueled by social media.
Post-Pandemic Travel Evolution
22:59 - 31:17 & 66:06 - 74:32
The discussion shifts to the transformative effects of the COVID-19 pandemic on travel. Matt explains that the pandemic accelerated the shift towards remote work, making long-term travel more feasible for many. This newfound flexibility has led to the emergence of digital nomads and remote work visas, allowing travelers to live in destinations while maintaining their income from US-based jobs.
Notable Quote:
“Post Covid, thanks to that shift in work, it's a lot easier to travel longer term now.”
— Matt Kepnes [62:12]
He highlights how remote work has enabled geo-arbitrage, where travelers earn a US salary and live in countries with a lower cost of living, thereby increasing their savings rate. This shift has made global exploration more accessible and economically viable for a broader audience.
Debunking Travel Myths
35:50 - 39:14
Matt addresses common myths related to booking flights, such as the belief that flying on Tuesdays is cheaper or that using incognito browsers affects flight prices. He debunks these myths, explaining that modern dynamic pricing algorithms rendered such strategies ineffective. Instead, Matt advises focusing on booking flights within optimal time frames—typically two to six months in advance—depending on whether the trip is domestic or international.
Notable Quote:
“There is absolutely, positively no basis for this myth.”
— Matt Kepnes [35:50]
He emphasizes the importance of understanding that airlines use sophisticated algorithms to maximize revenue, making traditional booking myths obsolete.
Leveraging Remote Work and Savings
59:56 - 66:06
In concluding the financial aspect of travel, Matt reiterates that long-term travel can be more economical than maintaining a conventional lifestyle in the United States. By eliminating major expenses like rent, utilities, and car payments, travelers can significantly reduce their annual cost of living. Matt encourages adopting a mindset focused on saving and strategic spending to achieve the goal of traveling the world on a budget.
Notable Quote:
“Long term travel is a good way to save money and do a lot of cool stuff at the same time.”
— Matt Kepnes [59:56]
He shares personal anecdotes about how disciplined saving and smart budgeting enabled him to sustain his nomadic lifestyle for over 19 years across more than 100 countries.
Key Takeaways
-
Long-Term Travel as a Cost-Efficient Lifestyle: Traveling long-term can be cheaper than living in the United States by eliminating costly expenses like rent and utilities. By adopting a frugal lifestyle abroad, travelers can maintain a reasonable budget while experiencing diverse cultures.
Quote:
“When you think about your cost of living, even if you don't live in an expensive New York, you are probably spending more than $30,000 a year when you add it all up.”
— Matt Kepnes [61:44] -
Strategic Use of Points and Miles: Effectively leveraging credit card points and loyalty programs requires a tailored approach aligned with personal travel habits and preferences. Selecting the right credit cards based on travel goals and redeeming points promptly can enhance travel experiences without incurring unnecessary costs.
Quote:
“There is no best card. There is only the best card for your travel goals.”
— Matt Kepnes [10:53] -
Adapting to Post-Pandemic Travel Trends: The rise of remote work has made long-term travel more accessible, enabling travelers to earn a stable income while living in countries with a lower cost of living. This shift facilitates geo-arbitrage, allowing for increased savings and extended travel experiences.
Quote:
“Post Covid, thanks to that shift in work, it’s a lot easier to travel longer term now.”
— Matt Kepnes [62:12]
Conclusion
In this enlightening episode, Matt Kepnes provides practical insights and actionable strategies for aspiring travelers aiming to explore the world on a budget of $75 per day. From rethinking spending habits and optimizing accommodation choices to navigating the complexities of credit card points and adapting to the evolving travel landscape post-pandemic, listeners gain a comprehensive understanding of how to make smarter, cost-effective travel decisions. Matt’s experiences and expertise underscore the belief that with the right mindset and strategies, anyone can afford to experience the vastness of the world without breaking the bank.
Final Quote:
“Long-term travel is a good way to save money and do a lot of cool stuff at the same time. And I think that regardless of your income level, you can afford anything.”
— Matt Kepnes [62:12]
For more insights and strategies on affording anything, visit affordanything.com and explore resources such as Matt Kepnes’s book, How to Travel the World on $75 a Day.