Dirtbag Finance: The Financial Trail to Funding Your Next Big Trip

Guinevere "Lucky" DrabikAug 15, 2024

As a thru-hiker you are asked some fairly standard questions: "Where are you from? What’s your trail name?” But the questions that stuck with me most while hiking the Appalachian Trail was “How are you affording this? Are you rich? Did you win the lottery? Are mommy and daddy paying for it?”

I am not rich, my parents didn’t pay for this, and unfortunately, no, I did not win the lottery. So how does one afford and fund a thru-hike anyway? Is there a savvy trick or do you just give up lattes and avocado toast for the rest of your life? (Neither of those things.)

Back in January 2019, when I bravely told anyone who would listen that I was going to thru-hike the Appalachian Trail, I had no idea what I was getting myself into. I had never backpacked for more than three days, and I had no idea how to save or financially plan for such a big life event. I was 23 years old, in graduate school, and I wasn’t making much money. But I knew I wanted to thru-hike, so I started to save, but at the time I did not have the knowledge or tools that I have now. I missed out on so many smart and easy habits that could have made my money work for me.

Fast forward 6 years to today: I want to teach hikers how to better plan and prepare financially for their next big adventure. I want to see hikers “hike their own hike” without the fear of putting themselves in debt or having money problems take them off the trail.

As of 2023, The Trek found that the average Appalachian Trail thru-hike cost approximately $7,482. However, the most common number spent was $10,000. Personally, I spent $12,000 on the AT because of the terrible weather we faced. It wasn’t on my trail bingo card to get evacuated out of Shenandoah National Park and get trapped in a town in Maine because of the unprecedented weather conditions of 2023.

Of the hikers I've talked to, many spent more than the average $7,482 on their thru-hike: many spent closer to $8,000 - $13,000. This number is greatly impacted by how fast you can hike, how many people you are hiking with, any specialized gear you might need [cries from the cost of custom orthotics, contacts, and medications], or injuries that keep you from hiking. These are all factors to consider when constructing a trail budget ahead of time.

The tools below are not easy one-step fixes, but rather an ongoing practice that requires consistency so that you can best save up for your next big thru-hike. There is no “bulleted budgeting tips” or “quick ways to get rich” options featured in this article, but there will be useful advice that has worked for me, and I hope it works for you. Just like hiking, money is personal, so take what you will, and leave the rest. Let's dive in!

Time to Evaluate Your Spending So You Can Save More.

First off, this is a shame-free zone! I am not going to shame you for your spending or what you spend your money on. I am here to provide insight and knowledge.

Being good with money is a skill, and you may have never been taught to be good at this skill. Research has found that we form our relationship with money by the age of seven. Meaning if you saw the adults and caretakers around you be stressed, excited, or feel insecure about money, it most likely made a deep impression on how you view and relate to money today.

Just like each hiker hikes their own hike, how you spend is going to be unique. I am not here to tell you to cut out all the things in your life that make it worth living or simply tolerable (believe me, it isn’t the avocado toast or lattes keeping you from your goals!). We need to gain an awareness and mindfulness about where our dollars are going.

To do this, I highly recommend taking yourself on a “money date” and going through your accounts, preferably once a week, but at least 1-2 times a month, and reviewing all of your purchases. Assess what you are buying and why are you buying it. Do you remember what you bought and why you bought it? Are you buying things that align with your lifestyle and goals?

Answering these questions can be incredibly informative. Knowing if we are buying out of impulse for that hit of dopamine, or if purchases made are purposeful and bring us joy. Find three categories that make you excited to spend money: things that align with your lifestyle and make you excited. For instance, mine is outdoor gear, food, and travel. At first, I didn’t realize my spending wasn’t aligning with my lifestyle. I work at a liquor store, and I didn’t realize how much money I was spending at work on fancy bottles of booze which I ended up not even drinking. After taking the time to see how much of my money I was actually spending, I suddenly realized that buying a bottle of fancy liquor wasn’t bringing me joy. Plus it wasn't helping me reach my financial goals of going on another thru-hike. So, I cut it from my life. I did not shame myself for overspending — I assessed the data, made the change, and moved on.

Budgeting is not a Bad Word

Now that we have an idea of what our values and goals are, and we know where our money is going, we need to build a budget. I know that might sound scary as many of us have a bad association with budgeting.

A budget is not a deprivation plan or diet — a budget is a money game plan, your play book for how you want to allocate money so you can effectively spend on what you need, while saving enough to reach your goals.

There are many budgeting approaches out there, but one that has worked for me is the the 50:30:20 rule:

Expenses - 50% of income for the expenses that you have to spend money on to survive in this world: rent, mortgage, bills, and minimum loan payments.

The rest from there is dependent on how much you need to save up for your thru-hike and how soon you want it to happen. The below works for me, but you may want to devote a higher percentage of your remaining income to savings depending on your goals, timelines, and a variety of other factors.

Savings - 20% of your income to saving for our life goals and planning. This is your emergency fund, trail fund, and paying down higher interest debt.
The last 30% of your income gets to the things that bring you joy and add value to your life. This category is made of those three things that make you excited to spend your money.

Let’s Get Our Savings Earning Interest

Now that we have a portion of our income reserved for savings, let's focus on how to best hold that money. You probably have a savings account right now where you keep cash for emergencies and big things you are saving for. The national average interest rate for a general savings account is about 0.45% Annual Percentage Yield (APY). Meaning the money you store in this account compounds at a rate of 0.45% per year. For example, if you have $1000 hanging out in your account and you add no additional money, at the end of the year it will gain an extra $4.51.

That may not feel like a lot, because it isn’t. An alternative is to take our hard-earned dollars and put them into a FDIC-insured High Yield Savings Account (HYSA) or another financial option where your savings can be earning compound interest. That $1000 would earn anywhere from $30-$50 extra a year (with an average 3-5% APY setup) if you didn’t add any extra dollars to that savings account. What's better is that money compounds monthly in a HYSA, meaning you are earning extra money by just letting it grow with interest.

As Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it." The interest you earn is passive income and can help you reach your goals that much quicker. It is the reason our debts often feel so inescapable, because loaning institutions are taking advantage of the compounding interest. So you should too.

When looking at account options out there, find what works best for you, as personal finance is personal.

These are the types of savings we want to keep building in an interest-building scenario:

1. An Emergency Savings Fund

This is the first thing you should have mostly funded before going on a thru-hike. A pool of money equal to 3-6 months of basic necessary life expenses is best. This fund is dedicated to emergencies and unexpected events— this is what pays your unexpected flat tire, keeps you afloat if you lose your job, or helps pay the bills if you become injured. This is such an important step to creating a financial safety net. It keeps you from putting emergencies on credit cards and accruing high interest debt.

2. Short-Term Goal Money

These are life events or big purchases that are on the horizon, but not too far out into the distant future: it is probably our thru-hike or some grand adventure! The reason we park our short-term goal money here is to get that interest helping as we save towards our goals.

3. Post-Hiking Nest Egg

A common thing hikers forget is that you will have to come off trail eventually. Something I have seen too often is hikers finish their hike without any available savings. They may have to scramble to find jobs that don’t fit the person they have become, and it’s another stress on top of figuring out how to live off trail. Money gives us options and freedom. When I came off trail in 2023, I had to find the first job I could to support myself instead of allowing myself to re-integrate slowly back into society. I started working two weeks after I summited Katahdin, and it was terrible for my mental health. I highly advise that you put away some money for your future post trail self so you can have some time to figure out what you want to do with your life-changing trail experience.

For my future Pacific Crest Trail thru-hike, despite knowing how to hike cheaper and needing less personal specialized gear, I am budgeting $12,000 + $4,000 for my emergency fund + a nest egg for when I return home of $4,000 = A grand total of $20,000 available for venturing on this trip. The last thing I want is to have to get off trail or go into high interest credit card debt because of unplanned occurrences.

Moving Forward

It can be scary facing our finances. It is complex and uncomfortable, but it's the first step in learning to make long lasting changes. Money can provide stability and opportunities to change our lives. Not just funding our big dream adventures, but allowing us to pursue jobs that match our lifestyles or leave harmful situations. As informed, mindful spenders, we have the ability to create massive impacts and changes by being informed about our finances and mindfully spending our money.

So be excited that by reading this article you are taking the first step towards funding a life-changing trip and learning a new skill to allow you to do more of the adventuring you love.

Guinevere is a former parasitologist-turned-hiker and freelance writer based in Omaha, Nebraska. Lucky thru-hiked the Appalachian Trail in 2023 and is planning to Triple Crown in the not so distant future. In the meantime when she is not on trail, you can find her spoiling her Shiba Inu, Princess Olive, or training for her next ultramarathon.

* Note that the opinions expressed in this article are those of the writer and do not represent the opinions or views of Garage Grown Gear. We hope this is one resource of many to help you get thinking about money and funding your adventures!