This reader question comes pertains to how young is too young for the sort of full-time travel lifestyle I live. I don’t think there’s clear-cut answer that applies across the board, as each answer is dependent on a certain degree of context. Here’s what I had to say to our reader below:

“I am really enjoying reading your blog…your lifestyle is what I eventually want to do, so it’s good to hear  that others are doing it (and succeeding in it).

I am a college student about to graduate. I have a good  finance banking job lined up for next year (and I’m also looking  into the CFP program) but I am definitely a dreamer. I want to  travel the world and participate in humanitarian efforts, start a  wedding planning company, etc.- I’m all over the place! Basically, I  think that I am yearning for something out-of-the-box and where I  have a life that I can control.

But now, I’m going into this banking job as a young analyst, which I think would be fine to do for a couple of years, but part of me  wants to just drop everything now and go do what I really want to  do. But I think to myself, maybe it would be better to get some  “real” job experience and some cash before I start chasing all my  dreams. At what point do you decide enough is enough? Am I too young  to drop everything now to travel the world? Realistically? When you  just came out of school, can you see yourself doing then what you do  now?

My Response:

Thanks so much for getting in touch! No age is too young to start, but I would say that I might not have appreciated the experiences I’m having on the road now, without having first spent some time in the working world, for a few reasons:

I was able to earn some decent cash to not only save for traveling but also to have on hand for business opportunities (ie: wedding planning – or my version thereof), as well as to have some stashed away for long-term investments (ie: retirement, etc – or when I may not be able to work but need money).

Money aside, I was also able to gain more personal identity and some business sense - which has helped me transition to a location independent career. Lots of people could do it sooner…I took a more circuitous route.

A lot of it also depends on how long you want to travel, or the lifestyle you choose for yourself. There’s a bit of a difference between a 3 month trip, a 1 year trip, and a no-fixed-time trip; the preparations for each are quite different. Heck – you may find more value in developing a rewarding career that also allows you to take time off each year (say, a month or two) to travel in style!

The bank analyst job will be rewarding for you (especially if you’re interested in becoming a CFP), and will help you get your feet under you financially (which doesn’t hurt, especially when saving for travel). In the meantime, watch out for spending too much of your cash on stuff (as tends to happen), and keep your eye on the ball- whatever that is.

Related posts:

1. While I Travel, Do I Sell my House, or Rent it Out? (Reader Questions Answered)
2. Reader Survey Results, Our Winner, and My Travel Plans for 2010
3. Is Full-Time Travel an Act of Withdrawal?

I get a lot of emails from readers with very pertinent – and often similar – questions. And if lots of people are asking a similar question, there are probably lots more who are thinking it!

Each post in this series will feature a reader’s question (with their permission of course!) and my answer to it. Sometimes the answers aren’t cut and dry; but then again neither is life. I hope you gain some insight and maybe even learn a few things from these Reader Questions Answered.

Do I Sell my House, or Rent it Out?

Reader Question:

My partner and I are hoping to do our own RTW trip this year. I’ve been backpacking through Europe on my own and back then it was just a matter of leaving a rented apartment.

This time around, there is a house involved. As someone with a financial background, I’m hoping you could offer us insight on whether it’s best to sell the house or rent.

Obviously, selling would allow us to have more spending money (after setting some aside for when we return) and leave us feeling a bit more freed up to take on whatever opportunities come our way. But knowing we have a piece of property to come home to is a comforting feeling.

Are there any significant financial backlashes to selling?

Thanks for any insight!

-Maria DG

Answer:

Congratulations on your upcoming departure, and thanks for contacting me!

There is no straight answer to your question – unfortunately. Here are some things to consider:

Renting the House Out

How do you feel about renting the house out while you’re gone? You’ll need to either hire a property management company or get friends/family to manage the tenants for you. (For example: if tenants leave or there are repairs, you don’t want to be getting overseas phone calls…you need somebody on the ground to take care of these things as they arise).

You also want to be comfortable about the place being rented while you’re abroad…for some people it would be too stressful having somebody else living in their house. If you can see your way to doing it though, it’s a very wise strategy, since you will have an appreciating asset to come home to; one that has also been generating a passive income for you while you travel.

Speaking of passive income, if the house is fully paid off, the rent money can be used to cover off property taxes and other home-ownership expenses, and the rest can pad your travels. If you still owe money on your mortgage, then the rent money can be used to continue to pay it off, no sweat.

Selling the House

What is the current real estate market doing in your neighbourhood and surroundings? If you can sell the house for a gain over what you bought it at, it may be worthwhile to do so and solidify your gains. (Don’t forget to factor in the tax consequences – if any – of doing so, depending on where you live). Yes, you will miss out on any future gains in value by selling, but if you know your market you’ll know whether the projected gains will be worthwhile for you.

If you sell the house, think about how much money you want available for your return. You may want to buy another house….and furnish it, etc…..if so, then beware of spending too much (if any) of the house proceeds on your travels. Stash away the amount you want to keep for your return in a separate account or investment so you won’t be temped to spend it on impulse abroad.

I personally chose to sell the lot to keep my options open on the road, and I’m happy I did it this way, since our travels are open-ended. But it all boils down to you, where you live, how long you plan to be away, and what “security” means to you.

Related posts:

1. How Young is Too Young to Travel? [Reader Questions Answered]
2. Reader Survey Results, Our Winner, and My Travel Plans for 2010
3. READER SURVEY: WIN A Signed Copy of 10,001 Ways to Live Large on a Small Budget!