The Budget Starts Now

I’ve been on the road since January 2008 and I’m only starting to feel the money pinch just now. I’ve been spending like a crazy person since I left and if I keep it up, I’ll run myself into the ground and back to my parent’s house until I can build up more funds. So, with that in mind, I’m going to attempt to stick to a budget for the first time on this trip. This means that flying to Australia for weddings is out of the question and will certainly mean a limit on steak eating and strawberry daiquiri drinking.

Things aren’t totally desperate yet but if I want to go to the World Cup in South Africa in 2010 then I’m going to need to start watching my finances. The flip side of less spending will be more earning and I am expecting to be pretty busy with work once I get to Nicaragua. I know I’ve said this before but this time, because of a few hiccups that I will go into later, it’s really time to get down to work.

So here’s what I have left of my savings:

  • UK funds: £2630 (about US$3790)
  • US funds: $870 (including bank account and Paypal)
  • Cash: US$360

Nicaragua is a pretty cheap country and that’s part of the reason I’m here. It’s a bonus that according to everyone I know who’s been there, it’s a really great place. I’m in Leon now and dorm beds are $6 a night. I have been in touch with a guy who owns Bigfoot Hostel about possible WWOOFing opportunities so this will likely mean cheaper or free food and accommodation. The problem is balancing this with working on my websites and learning Spanish so it might not be something I can do for the entire time I am in Leon. If it comes down to a choice between using my time to work on my sites or to save money by WWOOFing, I will have to choose the website work option, at least for the first month.

Here’s my budget for April:

Accommodation — $180 —
I’m not super keen on spending time in a dorm room but after Haiti, I’m sort of used to it so now might be a better time than ever to save a bit of cash, especially at only $6 per night. It’s difficult to justify paying twice the price for accommodation in a single room. If I can WWOOF for a week or more during the month then my accommodation costs should fall but it depends on whether I can find the time.

Food — $150 — I’ve been here for a couple of days now and one thing I know is that eating is cheap. I love cooking and there is a communal kitchen but it’s small and there are only two gas burners so I might exist on salads and sandwiches. Shopping at the grocery store is cheaper than eating out and I will do my best to keep my restaurant meals to a minimum.

Spanish courses — $460 — The Spanish school that appeals to me costs $115 per week for private lessons which is a bit of a budget killer but still pretty affordable when compared to other countries. Learning Spanish is the reason I’ve come to Central America so I’m not about to skimp on this now that I’m here.

Fun — $60 — This has always been my weakness in my travels as I love a good party. I think I might put myself on a month long booze ban and I’m going to attempt to lay low and be antisocial at least for my first month. This will be partly to save money but mostly to concentrate on working and studying as much as possible. I won’t know anyone when I first arrive which will make this pretty easy if I try to keep to myself a bit. The problem is that it’s not really in my nature to keep to myself and I will probably get bored pretty fast but I will at least give it a try. I might try to fill my time with some baseball games since they are crazy about it here and so am I.

Miscellaneous — $20 —
Transportation costs will depend on how often I want to get out of Leon and I think, at least for the first month, I won’t. The city is very walkable but the but to the beach could be an expense that adds up. Laundry will be another miscellaneous cost but I will try to do it myself as much as possible.

Total — $870 — This might seem like a pretty genersous monthly budget but when you take away the Spanish courses, that leaves me with $410 in living costs which is pretty strict.

I will be posting an update each week in April to let you know how I’m doing and so I have someone holding me accountable! I also think it will be a great way to get an idea of the costs of living in Nicaragua or anyone who has ever considered moving here. It’ll be a challenge but I’m looking forward to giving this budgeting thing a try and curious about whether I will be able to pull it off or not.
Wish me luck!

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