Cycle touring can be done an a shoestring budget, or you can spend, spend, spend. My first touring was done on a Raleigh Gran Prix 10 speed with a department store rack, a $30 single-wall nylon pup tent, a cheapo sleeping bag I got free by listening to a condo sales pitch, and panniers I sewed myself using pack cloth. Now I have a little more money (not a lot) and have a 21-speed touring bike, nice panniers front and rear, a very lightweight tent, lightweight sleeping pad, etc.
As far as the bike is concerned, don't scrimp on the rear wheel. At the end of a tour down the west coast I was breaking a spoke a day on the stock mailorder wheel I had.
Before a similar tour last summer I went to my local, trusted bike mechanic and said "Build me a rear wheel that won't break spokes, even with a big load." He ordered good parts, built the wheel himself, trued it carefully, trued it again right before I left. I didn't break a spoke.
There are some emergency spokes you can get which I recommend. They're actually cables with hooks that fit in the hole on the hub, so you don't have to disassemble anything. You tighten them down (you'll need some sort of spoke wrench) and they'll take you to the next town with a bike shop. They've saved me several times. I've never been able to get my wheel very true with them, but if I loosened the quick release on the brakes, I was able to ride.
Another tip: if you find yourself breaking spokes more than once or twice, forget about just replacing them. Once they start to go, they keep breaking. Better to replace them all and start over. On that trip down the coast I was paying bike shops $25-30 each time to replace the broken spoke and true the wheel. It would have been cheaper to just say, "build me a new rear wheel". Plus, each time I'd have to wait around in the shop while they found time to help me. The time wasted was huge on a tour like that.
Okay, that's the rear wheel/spoke advice.
Next, what to carry. Weight is critical. Everyone takes too much the first time. Most of us take too much the second and third times. You'd be surprised how little you need to carry, especially if you're not too worried about being a little dirty.
- Raingear is pretty important. Get something you can ride in. However, my experience is that Goretex isn't necessary. I sweat so much when I ride that the "breathability" factor isn't a factor. I get wet inside from sweating. However, around camp you really need raingear when it starts to rain. Also, raingear can be your outer layer when it gets cold - no need to bring a jacket
- I bring two jerseys and two pairs of shorts and use each twice before considering washing. I could easily go three days in each. Being a little stinky is better than carrying too much. You can wash them in the shower with you to save a laundromat stop. Hang them up at night, drape them on the outside of your gear while riding the next day and they'll be dry when you get to camp. I also bring tights for cold mornings.
- I bring sweatpants, a long-sleeve t-shirt, a fleece vest, shorts to sleep in and a couple of t-shirts to wear around camp. That's it.
- Don't carry a lot of food. The nice thing about bike touring (as opposed to backpacking) is that you're always passing stores. I typically stop in the last store before the campground and pick up food for that night and the next morning.
- I recommend carrying one spare tube, plus a patch kit. If you get a flat, put in the spare tube and buy another at the next opportunity. If you get a second flat before you can buy another tube, patch it.
- Tire problems are much more rare. If you get a cut tire you can insert cardboard, a dollar bill, etc. None of them are great; the idea is to make it to the next bike shop. I know people who carry a spare tire. It's not a bad idea.
- Get the lightest tent you can - even if it's a little snug. I'm 6'4". My Clip Flashlight tent is a bit small for me. It's hard to dress in and I can't really stretch out like I'd like. But I love how light it is! A little inconvenience is well worth it for the weight savings.
- Get the lightest sleeping bag you can. You don't need a 0 degree bag for summer touring. If it gets that cold you can wear your tights and your sweatpants, etc. inside your bag.
- If you need a pad to sleep on (I do) get a 3/4 length, light Thermarest. It's enough, it's light, and I've never had one spring a leak.
- If you are going to cook, get a stove that runs on unleaded gas. You can get it at any gas station, and therefore don't need to carry more than you will need for one night and morning.
- Panniers - There are lots out there. Make sure they are either REALLY waterproof, or that you buy the rain covers that many offer as accessories. Also, buy both front and rear, and put as much weight as possible in the front (You'll also need racks, front and rear. Blackburn are the standard and work well.) There are a combination of factors which make rear wheels most likely to break spokes. Front wheels almost never do. If you put as much of your weight as possible on the front, you likely still won't break front spokes, and you will lessen the chances that you'll break rear spokes.
- Plan on eating a ton of food. I spend a lot of money on restaurants while touring.
- Have a little extra money in your budget for motels. There may be days where you really need to treat yourself to a motel room, or the weather is just too lousy.
- Like other people, I suggets some "shakedown" trips prior to the big one. See how far you can pedal in a day, get in shape, learn what stuff you absolutely need and what you can live without. See if you really like bike touring; not everyone does. It would be nice if you could get a little rain experience on your practice trips. I discovered that my tent needed seam sealer!
- Have fun!