This is the big one. I like this part: it's when you sit down and think of all the things you've always wanted to do, and then realise that, hey, you can do them. What a buzz.
You should never follow anyone else's methods to the letter, but in case it's helpful, here's a quick list of what I did to plan my trip. Take it with a huge pinch of salt:
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Choose where to go: Identify where in the world you want to go. This isn't as obvious as it sounds: you might decide you really want to visit India for a couple of months in the summer, but when you do your research you'll find it's underwater in August. But you have to start somewhere, even if it's with a pin, a blindfold and a map of the world.
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Narrow it down: Go down the library or bookshop and pick up a few guidebooks on the area. The general ones are best at this stage, particularly those that cover whole continents. Alternatively, there are loads of websites out there with opinions on where to visit, though as with everything on the Web (including this site!), take everything with a healthy pinch of salt.
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Feasibility: See if you really like the sound of it. Check out the weather when you hope to be there. Make sure it's not out of your budget range.
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Safety: Check the latest travel information from the Foreign Office: if you're planning a trip to somewhere unstable, such as parts of Africa or the Middle East, make sure your dream destination hasn't erupted in civil war. Some people say all the official warnings are paranoid, but there's no harm in being aware of the potential dangers.
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Visas: Work out which countries require you to have entry visas. If you don't have the right visas in your passport then no amount of bleating at the border will work, and you may have to fork out a fortune to get you out of hot water.
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Budget: Cost out your trip. This is bloody difficult, but you have to start somewhere, so check out the average cost of a flight, use the guidebooks to work out how much you'll spend on a night's accommodation, food and transport, and you'll have a very basic budget from which to work. Nobody sticks to their budgets, but you should start somewhere.
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Alone or not: Decide whether to go alone or with a friend or two. Personally speaking, once you've tasted solo travel you'll find it hard to go back, but for the first time having a mate along is a good idea, and some areas of the world are unenlightened enough to make solo female travel a dangerous occupation. It's your decision, but it's worth reading my article on the pros and cons of solo travel.
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Medical: Get any inoculations you need. Some of these may be free from your doctor (in the UK, anyway), but I highly recommend going to a specific travel clinic, if you have one in the area (British Airways and Trailfinders both have good clinics in the UK). Doctors can be useful, but their information is not as up to date as the travel clinics; my GP gave me the wrong meningitis jab before I went to Africa, with the result that I wasn't covered for all the strains out there. This is obviously a Bad Thing. Whoever you consult, though, it's vital to get up to date on tetanus, polio, typhoid, meningitis and so on, and if you're heading off into a malaria area ask for tailored advice for malaria pills. Some people don't take malaria pills, but they could save your life, and it's important to get good advice: I was told not to bother for my 11 months in Asia, but was advised to take Lariam for a year in Africa (and it nearly ruined my trip).
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Home affairs: If you have someone at home whom you trust, consider giving them the power of attorney over your financial affairs. This enables them to sign cheques and access your bank account on your behalf, and can save serious problems if you want money wiring abroad. Contact a solicitor for details.
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Just in case: Make a will. Seriously. You might never come back.
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Insurance: Get travel insurance, or medical insurance at the very least. It could very well save your life, and it's not expensive. If you go to America, it's not so much recommended as compulsory.
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Money: Get some travellers cheques (US dollars are the most popular, and try to get them from American Express or Thomas Cook, as these are accepted almost everywhere and others might not be). It's also good to have a little cash for emergencies, again in US dollars (say US$500). Many people, myself included, carry a Visa card, and most countries' banks will let you take money out on them. The exchange rate is normally excellent, you don't have to worry about carrying wads of travellers cheques, and as long as someone is paying the bills at home, it's convenient. On the other hand, if it gets stolen, it's a drama – but it's better than having your cash nicked.
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Staying in touch: Set up an email account (see the section on keeping in touch).
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Flights: Book the flight. Until then it's just a pipedream, but once money is committed and you've got a date fixed, you'll feel far more motivated to get things done. And that's when the fun really starts.
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Leaving: Have a going-away party. It's a good excuse, and you won't be around to mop up the chaos it creates... and you can throw another one when you get back, too.
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Coming home: Accept that you might not enjoy yourself: it's rare, but some people simply aren't cut out for travelling. If that's the case, either come home or change country, but don't stay out there just because you think you'll be regarded as a failure if you come home. It's far braver to admit it's not for you than to keep on hacking in a miserable mood. You'll know if you're not into it.