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planning a budget… when you don’t know how much things cost June 25, 2008

Posted by deepali in budget.
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So I find myself facing a unique challenge now:

I am going to Mongolia next year for 10 months. For the remaining two months, I will be at my current job.  I budget a year at a time, except I can’t really do that next year.  For January and February, things will remain the same, but come March, everything gets turned upside down.  To make things tougher, I plan to spend the first part of the following year traveling.

For now, I’m trying to make a list of known expenses, and then I will start googling and/or asking people in my network for estimates of costs.  Here is where I stand now:

1.  International flight. The flight to Mongolia can really vary, depending how I want to go about doing this.  Even more complicated is the fact that I can’t really book a return flight.  I will be talking to the travel agents to get an estimate for this, but for now, I’m eying $3000 roundtrip.

2.   Housing. I will be renting an apartment in Ulaan Baatar.  Ideally, it would be a month-to-month option, fully furnished, with utilities included (hot water please!).  I will be asking my local partners for help on this, in the hopes that they will find something cheaper than I would (being an expat). Currently, I’m looking at $300/month, or $3000 total.

3.   Food and Entertainment. I need to eat.  Mongolia is a primarliy meat and dairy country, and I am a vegetarian.  So I expect that my daily diet will be more expensive than the norm.  I think I can use my estimate for my current monthly costs, and assume that, even with more expensive vegetables, I won’t be spending more than I do now.  I will budget $200/month, or $2000 total.

4.   Equipment. I will need some technical equipment for my project.  Specifically, I need ArcGIS software and a GPS unit.  I am shopping around for some deals, but I don’t want to skimp on this.  So I think I will need $1000.

5.   Language classes. I need to be able to get around.  Usually, I find that some instruction in advance, plus some intensive study when I arrive is the best option.  The advance instruction is difficult to budget for, but I will assume that the courses I’ve found online will suffice.  In addition, I’ve been told that private tutors in Mongolia can be had for $5/hour.  So, the advance online course ($800) plus the intensive instruction (100 hours) means I need $1300.

6.   In-country travel. I will need to travel around in country to do my project.  I would also like to take in some sights.  This is an area about which I am unsure, so I cannot budget properly.  But assuming 12 weeks of travel at $30/day, that would be $2520.  I will round up to $3000.

This brings my total to $13, 300 for ten months in Mongolia.  My grant covers $14, 500, which brings it pretty close (given that I have not accounted for miscellaneous expenses).   There are some areas I can cut back (like finding a cheaper place to live), but I think my best option will be to seek additional funding.  There are a couple places I can try.

Beyond the fellowship, I plan to travel.  I’ll save that cost breakdown for a future post.

Comments»

1. Carnival of Personal Finance, #159: The First Zero-Emissions City | Greener Pastures: Personal Finance - June 30, 2008

[...] from Paradigm Shifted talks about Planning a Budget When You Don’t Know How Much Things Cost, as she plans for a long term trip out of the country next [...]

2. quick posts from the last carnival of personal finance | plonkee money - July 6, 2008

[...] planning a budget when you don’t know how much things cost @ paradigm shifted – I really, really want to go to Mongolia. I’ve wanted to go for the last 9 years. I need to put it higher up on the to do list. [...]

3. Shefaly - July 19, 2008

Insurance costs? To cover travel, health, theft or damage to equipment and possessions, legal costs (worst case)?

4. deepali - July 19, 2008

@ Shefaly – Health insurance is provided, and I’ve bundled travel insurance into the cost of the flights. But maybe a blanket travel insurance policy (for in-country) would be useful. I’ll have to see about rental insurance….