How to Travel on a Budget
Are you traveling on a budget? We've put together our personally tried budget travel tips that we use for long term trips or short vacations. Learn how to travel for less and see the world on a shoestring.
Before we started traveling, we asked ourselves how can we travel the world on a budget and if it is worth it. Please do not take us wrong, but we did not want to miss out on the best things and top attractions simply because we do not have enough money.
Thankfully, we soon came up with budget travel tips we followed quite strictly on the road, and it gave us the possibility to save money on the road and keep going for the whole year as we had planned.
Since then, we have been using these budget tips on every trip, regardless of whether we travel to Iceland or Nicaragua.
To be honest, we unintentionally used most of them when we started traveling several years ago, only this time we were more strict as we knew that the whole of our journey depends on it.
In general, we like traveling on a shoestring as we hate spending more money on things when it is not necessary.
With the motivation to travel and the right mindset, everyone can learn how to travel on a budget.
TRAVELING ON A BUDGET
Yes, sometimes, it is not comfortable, and sometimes you need to be a bit more innovative and do things differently, but when you think of what you gain in return, it is totally worth it.
It is quite a common misconceptions that only wealthy people can travel. Yes, you need money to explore new places, but with a bit of planning, you actually do not need that much as you think.
Sure, we met on the road people who spent on their 2-week Iceland vacation vacation almost the same amount of money as was our budget for the whole year in South America.
Our journey was probably not that smooth, it maybe took us longer, and we spent countless nights in shabby hotels, but at the end of the day, we saw the same highlights and had fun, and this is what we think that matters.
Do not take traveling on a budget as something plain and dull.
Backpacking on $50 a day teaches you how to be financially independent, find solutions that make sense and be in touch with local people, which is also one of the essential pillars of sustainable traveling.
Saving money for travel is one thing, but once the journey begins, you need to follow the steps to manage living on the road as long as possible.
Traveling on a budget does not mean you must live frugally and not have fun. Rather the opposite.
It means that you will be making smart decisions that make sense from both an economical and personal point of view.
Every person is different, and the way to travel on a budget is not the same, for example, for you or us.
When traveling, we do not spend money on alcohol and treats, but then we can spend saved money for a short helicopter flight in Mount Assiniboine Provincial Park or transport to Milford Track.
Even when you travel on a budget, you can splurge from time to time.
There is no one right path to follow, only a selection of random tips we gathered on the road about which we know that work, especially when combined together.
We've put together our tried and tested budget-saving tips we use on a daily basis.
Once you implement at least a few of them, it will help you to stay on the road longer and spend less while exploring the best the world has to offer.
These budget travel tips will also show you areas where you probably spend unconsciously more money than you should, so hopefully, these tricks will help you realize it, and the money you save can be used on your future trip.
CREATE DAILY TRAVEL BUDGET
One of the most important things to save money on the road is to define your budget. We prefer to know our daily budget and always do our best not to spend more.
Of course, some days are more financially demanding, especially the travel days, than the days you stay in one place. In the end, it all must click.
If you spend less than your daily budget one day, consider buying a day tour the next day. If you spend more than you should have the day before, the next few days would be more stretched.
The goal is to balance your budget with the actual expenses.
It is essential to make your daily budget realistic, and you must factor in many things. You will hardly survive in Europe on the same budget you would in Southeast Asia.
Having a budget of $1000 for Malaysia will deliver a completely different experience than having the same amount of money for Ring Road in Iceland.
Before you set off, consider activities you would like to do and attractions you would like to see.
Be honest with you and ask yourself whether you are really able to sleep in cheap hostels for the whole period of your travels.
Traveling on a budget means that you will give up a bit of your comfort, but it should not be way too uncomfortable for you, because in the end, you would not be able to maintain this lifestyle for long.
AVOID BUYING UNNECESSARY THINGS
Well, it is much easier to say than do, but before you buy anything on the road, you should always consider whether you really need it. Again, this point is very individual.
For example, when we were traveling in South America and Central America for a year, with a few exceptions, we never bought an alcohol, pops or coffee as we wanted to get with our money to as many countries as possible.
Indeed, we do not normally drink sweet drinks and coffee at home either, but there were for sure times when we were longing something else than water, especially when the weather was hot and humid.
It is all about priorities and often strong will. What helped us the most was the right mindset.
We knew we had a limited amount of money, and always when we were about to slip from the desired path, we told ourselves that we could have all the unnecessary things we want back at home, and it is worth it to postpone the consumption.
The same goes for souvenirs, clothes, but we think the foods and drinks are probably the hardest to resist.
Of course, a cup of tea in Cameron Highlands or caipirinha on Copacabana is a must.
And it would be a shame to visit coffee farms in Salento without having a cup or vineyards in Martinborough and not to taste their fantastic Pinot Noir.
It's all about balance and common sense.
PREPARE YOUR ITINERARY CAREFULLY
Whether you plan on traveling short-term or long-term, it pays off to prepare your itinerary carefully.
Sure, creating a travel itinerary is different when you are about to embark on your two-week vacation or several months-long backpacking trips, but one thing does not change.
It really helps when you do your research thoroughly.
You do not have to know where you will spend the night two months from now, but it is a good idea to know what the season is in your destination, how much the entrance fees to the top attractions cost, and what are the cheapest ways of transport.
Some of the destinations must be booked months in advance, and it can be super-expensive.
That's why we planned most of the Great Walks in New Zealand for the offseason and paid only the fraction of the original price.
Trustworthy information is invaluable, especially when you travel on a budget. Search for free entrance fees to museums, special occasions such as national holidays.
For example, in the Czech Republic many attractions, such as Municipal House in Prague waive the entrance fee on the Day of the Independent Czechoslovak State.
TRACK YOUR EXPENSES
When traveling on a shoestring, it is really helpful to track your expenses. We learned to do it when we were saving money for travel, then we did it all the time abroad, and we continue to monitor our expenses even at home.
There are so many apps out there, but we use the one simply called Wallet App.
We enter there all incomes and expenses, and at the end of the selected period, we always know for what we spent the most money, and we can also see whether there is room for improvement.
You can also set a budget in the app, so you will always know how you are doing and how responsible you were.
TRAVEL IN OFF-SEASON
The best budget travel tip? Travel out of season. It is one of the things we wish we knew before we started traveling.
Back then, it did not cross our minds that prices can drop that significantly if we arrived a few months earlier before the summer, or if we waited a bit.
It took us quite many trips to figure out that the shoulder season is always the best.
Like many other travelers, we also want to have great weather, so we enjoy the country plus get beautiful photos, but traveling outside the main season often offers that, plus it has more advantages.
First, traveling out of season is sustainable as it prevents over-tourism.
Prices for tours and accommodation are often cheaper - you can save quite a lot of money when you avoid summertime and holidays in some destinations.
And one of the most important advantages we see in traveling offseason except for the money-saving trick is that places are not that crowded.
So next time you want to travel to Europe, why not to visit Prague in winter?
BUDGET ACCOMMODATION
Accommodation is, for sure, the most significant expense on your travel bill. You need to sleep somewhere every night, and you will end up paying tremendous amounts without looking for the best deals in every place you visit.
It makes sense if you need to travel on a budget, to look for the cheapest options.
We use Booking.com to make reservations, so we sort accommodations from lowest to highest price.
We must admit that nowadays, we do not sleep in the cheapest option, but we compare the price, cleanliness, accessibility, and reviews. Still, the places where we often slept were really terrible.
Stained sheets - travel with silk liner - no windows, cockroaches, dirty floor, no aircon, no heater, noisy guests, sometimes even no key.
From time to time we were able to find quite an okayish room - we do not need much, it is enough when it is clean and cozy, but most of the accommodations were nothing to write home about.
On the other hand, we always knew that once we start paying more for the room every night, we won't make it far.
When you are a budget traveler, deciding on your budget for accommodation is probably the toughest call.
Still, in every place, you can find cheap accommodation.
The cheapest places to spend a night are often hostels where you can book a bed in a dormitory. We usually don’t sleep in dormitories because it usually does not make a much of difference if we pay as a couple for two beds or a double room, but we had to take this option when it was inevitable.
And some dormitories for example in Santiago de Chile or Lanquin near Semuc Champey were really nice.
You can even use services such as Couchsurfing, where you can sleep for free and crush on someone's couch.
We must say we were fans of shared economy options in the beginning, but are not anymore; in our opinion, services like Airbnb destroyed the realty market in many cities and we try to avoid them.
In general, the cheaper accommodation you find, the more money you'll have for the actual travel. Here are some tips on finding a good hostel while traveling.
EAT LOCAL FOOD
Probably the easiest budget travel tip we can give you is to eat locally. Food is a vital part of traveling, and it is one of the areas where you can save a lot of money.
Our trick? We always go to a restaurant, or rather an eatery with many locals inside - this way, we know the food will be tasty and reasonably priced.
We also love street food which is even cheaper.
Two of our favorite foodie destinations are Penang and Melaka in Malaysia, where street food is prevalent.
Fast foods and restaurants focusing on international cuisine and foreign guests are often much more expensive than local food, plus it lacks authenticity. This is especially true in developing countries.
Why would you eat the Western-style food anyways, when there are so many flavors to try abroad?
COOK IN HOSTELS
Yes, we traveled in countries where it made no sense to go shopping and cook in hostels because the food in eateries was incredibly cheap, like in Vietnam or the Philippines.
But most of the time, it is not the case, and self-cooking is one of the ways how to cut costs on travel.
When we were in Florianopolis, we found the food quite costly, and to be honest, we wanted to take a break from eating the same meals all over, so we cooked quite a lot.
The only thing you need is to find a hotel or hostel with a well-equipped kitchen, and you can start preparing your favorite meals.
We also cooked a lot in Patagonia, where most of the restaurants served meals above our budget.
Although preparing your own food takes time (it is not that bad when you choose simple recipe), it saves money, and this is what you need right now, right?
PACK EVERYTHING YOU MIGHT NEED
Do you want to avoid buying expensive equipment abroad? Then pack everything you might need on your trip at home. Make a list several weeks before your journey and write there clothes and accessories you think are necessary.
We use our list of the things we never leave home without, and then we only pack clothes we are going to need in our final destination according to weather and activities we plan on doing.
Unexpected expenses occur on the road, but it is always better if you can avoid it.
Some things may be much more expensive than those in your home countries, such as sunscreens or contact lenses, not mentioning they do not have to be available.
SEARCH FOR THE DEALS ONLINE
The Internet makes everything easier, especially the planning part.
If you travel long-term, we recommend you to sign up for emails from travel companies such as airlines, hotel chains, or tour operators.
You will most likely find there a deal that is hard to resist, especially if it is the first minute or last minute offer.
By booking your trip online, you can save quite a lot of money.
TRAVEL BY PUBLIC TRANSPORT
Forget about taxis and private cars. The cheapest way how to get around a foreign country is by public transport. We know that first-time travelers often don’t use buses or trains as they are afraid, but believe us, there is nothing to fear.
Except for the fact that traveling by public transport will help you stick to your budget, this transportation method will give you fantastic experiences and insight into local peoples' lives.
Most of the time, there is no need to book public transport in advance, but make sure you do your research, especially when traveling to a popular destination during the season.
Traveling by public transport is a must-do for backpackers traveling on a shoestring.
It is less comfortable than private transport or tourist buses, it stops often, and the journey takes longer, but if you travel from one place to another frequently, it will save you a lot of money.
TRAVEL WITH HAND LUGGAGE ONLY
Same as travelers, transportation companies work hard on cutting their costs. That's why it's become a norm that we often have to pay for checked-in luggage extra.
It often seems that the flight ticket is cheap, but when you add the luggage, the price almost doubles, especially when it is a short flight.
One of the worthwhile budget travel hacks is traveling only with hand luggage.
Check the weight limit of the airline company (sometimes bus companies have similar rules) first. It is usually around 8 kilograms, and we think you can pack a backpack for a week or two to meet this limit. This way, you will save money.
Traveling light is a huge topic as it is more sustainable, so this way you will kill two birds with one stone.
We traveled with hand luggage last time we flew to Jordan, and it was great.
We found a super-cheap ticket, we were comfortable as our luggage could not get lost, and we did not have to wait for our bags after arrival, so we were out of the airport a few minutes after the plane landed.
TRAVEL INDEPENDENTLY
If you read our blog more frequently, you probably already know that we love to travel independently.
There are so many benefits of traveling independently that we do not have a reason to travel with a tour unless it is too hard or too expensive to reach the place.
Most of the time, independent travel is more budget-friendly than traveling on tour.
It usually requires more planning, time management, and it is less comfortable, you often need to use public transport, but in the end, you pay fraction than you would with the tour operator.
If your itinerary is packed, you might need to use a tour operator, but if you travel long-term and can afford traveling at a slower pace, traveling independently is a budget-friendly tip that never fails.
Simply put, we love traveling independently. In Peru, we visited Laguna Paron or Laguna 69 without a tour, and we have some great memories from these trips. Even though we must admit, that those particular trips cost almost the same as a tour.
CHOOSE CHEAPER DESTINATIONS
What is the best way to stick to your budget and not break the bank? Traveling in cheaper destinations. The more expensive the destination is, the higher your daily budget must be.
Choosing a destination is essential to save money.
Therefore countries in Southeast Asia are so popular.
They have a lot to offer in terms of nature and culture, plus they are affordable. It is a good trick, especially if your budget is meager.
Countries like Thailand or Indonesia belong among the cheaper destinations, and even though prices rise every year, it is still undoubtedly much more affordable than Europe or the USA.
Your travel style does not need to be that strict in cheaper destinations either.
BRING SNACKS AND WATER
The worst thing that can happen to a backpacker is when he or she gets hungry or thirsty, and there is no reasonably-priced grocery shop around.
It happened to us too, that we had to buy overpriced water and food we even did not want to spend money on, only because we did not think it through before the journey began.
Today we do not make such a mistake.
We always bring enough water with us (to reduce your plastic consumption buy large barrels of water, or consider investing in a water bottle with a filter), and snack, usually bananas in our backpack.
Small purchases like this can surprisingly save a lot of money.
TRAVEL IN GROUPS
Even though we value traveling independently, sometimes joining a group makes more sense financially as you can share the cost.
When we were waiting for a colectivo in Valladolid in Mexico, which should take us to a cenote nearby, we noticed a couple who seemed headed in the same direction. We asked them, and sure they wanted to travel to cenotes as well.
We found a cab driver, haggled the price down, and enjoyed the cheap ride. In the afternoon, we even returned to the city together as well.
The same happened to us in Cuenca in Ecuador. Our bus was scheduled to leave late at night.
So we were hanging out in a hostel lobby with other people, and as it was raining hard and we did not want to walk this time, we joined two girls and shared with them a taxi.
If you want to keep the cost down and do not mind to share a journey with strangers, hostels are great places to find other travelers with similar intentions.
BUY SIM CARD WITH DATA
Buying a sim card is an investment, but we think it is worth it having a possibility to call and google information, especially when you are in a foreign country.
If you get to a situation when you do not know what to do or want to check prices, it is much easier to figure it our when you have data.
We usually buy a foreign sim card once we land at the airport, and it many times proved as the best investment that, in the end, saves money as well.
SHOP AT THE MARKETS
Local markets are for us as a heaven. Not only can we buy there fresh vegetables and fruits (we were yet not that brave to buy meat), it is authentic and photogenic, but we can also shop there cheaply.
Most of the markets offer great value, and it is a must-visit place for all budget travelers.
First, it is one of the free things a person can do in a city, but most importantly, the products here are much cheaper than in shopping malls - unless you stumbled across a market designed for tourists.
Shopping on the local markets is one of the best travel tips we can give you in case you want to save money on the road.
Yes, it is sometimes annoying to haggle over a price of every carrot, but the experience (and money saved) is worth every penny.
We must add that this is mostly true in less developed countries. For instance, local markets selling vegetables and organic food in our home country are usually much more expensive.
CITY TOURISM PASSES
Every destination has various tools on how to promote tourism and attract visitors to see as many attractions as possible. These tools must surely be favorable for destinations, but they are often great for travelers as well.
One of the best marketing activities that are perfect for budget travelers is city tourism passes.
The pass usually includes entrances to the city's highlights, and the combination of tickets is cheaper than if you have bought the tickets separately.
Before visiting a new place, always look for a city pass, most of the major tourist cities have them.
We took advantage of a New York City Pass.
This pass included, for example, the entrance fee to Empire State Building, National September 11 Memorial & Museum, Statue of Liberty, and several museums.
When we counted how much money we would spend otherwise, it was really worth it.
FREE WALKING TOURS
Is your budget tight, but you do not want to miss on tours that will teach you more about the city's architecture and culture?
A great way how to explore the city is to join a free walking tour.
Sure, the tour is not entirely free as a tip is expected in the end, but you can tip as much as you think is appropriate.
So far, we've joined quite many free walking tours, for example, in Bogota and Medellin, and all of them were great.
Our guides were usually young local people who knew their stuff and told us a lot about the city, and we met on these tours many same-minded people.
GET DISCOUNTS
There is nothing wrong with asking about discounts. Entrance fees to museums or the country's top attractions are often pretty expensive, and why should you end up paying more when it is not necessary?
If you are a student, senior, or travel as a family with kids, ask at the counter whether they provide an additional discount.
Do not forget your ID or ISIC card, though, to prove your age and status.
BARGAIN
This budget tip does not work everywhere in the world, only at places where bargaining is a norm. Haggling the price down is common in some countries in Southeast Asia, Africa, or South America.
Truth be told, when you are not lazy and bargain (respectfully though), there is a chance to save a lot of money every day.
Some people even take it as a kind of sport, both customers and sellers.
We prefer when the price is given, but bargaining is part of the experience in many countries.
It is also important to say that if you paid the first offered price, it would be really not wise as you would end up paying for stuff much more than is its real value.
So decide what is the price you are willing to pay for that pineapple and have a chat with the vendor for how much he will sell it for you.
Even though the point is to find the fair price, not the lowest price, all budget travelers should, in order to keep the cost down, find some time for haggling the price down.
BE FLEXIBLE
Being flexible on the road gives you a unique opportunity to search for better deals and to use special offers and discounts.
This tip is more for long-term travelers who can plan their time in a destination more freely, but even holidaymakers should always have at least one day off in their itinerary.
This extra day serves for many things.
When something gets wrong, but also when you find out that a place you wanted to visit is open the next day without an entrance fee.
When you are on the road for long, it is worth it to wait for cheaper bus or flight tickets (usually weekdays) on a particular day, special events on national holidays, or discounts for accommodation.
TALK WITH OTHER TRAVELERS
Hostels and overall places where travelers gather are usually the best spots to learn about things that will help you save money.
Backpackers often know their stuff, and you can learn a lot from people who also turn every coin before spending it.
Here you can learn about cheap activities in a place you are about to visit, the best deals, things you can do for free, tips on visiting sites you've never heard about before, cheap accommodation tips, and tricks that will keep you on the road longer.
This way, we, for example, learned it is worth it to visit Rainbow Mountain with Red Valley, or we ate in many eateries based on the advice we got.
Of course, use your common sense, select the information and make sure it suits your budget.
We also remember people we met on the Inca Trail telling us about an excellent cheap restaurant in Cusco, so when we got there to check it out, we found out that lunch costs three times more than we were used to paying for a meal.
As you can see, the definition of the word budget means something else for every traveler, so it is necessary to straighten things out.
FREE THINGS TO DO
Every true traveler on a shoestring at least once in a while google the phrase 'free things to do' in a destination that is on the list.
Why not try it?
You might be actually surprised by for how many cool things you do not have to pay, especially in larger cities.
Usually, it is cultural events and things you would have never known before.
Another benefit is that locals also visit these events, so if you like to see the place from a different point of view and get to know the mentality of local people better, attending these events is great for your experience and your pocket as well.
As we live in Prague, we've put together a post on what are the best free things to do in Prague, and we are glad to see that people are looking for this type of advice.
TRAVEL AT NIGHT
Is traveling at night comfortable? Often not. Does it save money? Yes. What is the result then? If possible, check whether the night bus line is available.
In countries like Colombia or Peru, we traveled on countless night buses.
What were the perks? The fact we did not need to pay for a hotel, plus we saved time as the journey did not kill the whole day.
Of course, it is not possible to travel during the night every other day as it is quite exhausting, but when you plan your itinerary, definitely think of this tip on how to save money (and time) on the road.
WORK AND TRAVEL VISAS
How to save money on the road, or better, how to make money on the road and travel indefinitely? Choices are plentiful, but one of our favorite ways to make money on the road was work and travel visas.
We applied for these visas twice, and both times we were successful.
Thanks to it, we spent a year in New Zealand, and then in Canada, working and traveling.
We consider this option as one of the coolest things a young people can do as it was a huge eye-opener for us.
We had to take care of ourselves for the first time entirely, we learned the value of money we made, and we had to find out very quickly how to live on a budget, so we would have enough money for traveling.
Both experiences had many faces, but they showed us how traveling can change your life.
GET TRAVEL INSURANCE
Travel insurance is, for sure, an investment, but we do NOT recommend traveling without it anywhere.
Is it worth it to buy travel insurance? Well, many posts were written about this topic, but we think the answer is pretty clear.
You never know what might happen on your journey, and having an insurance that covers all the activities you plan on doing is essential.
Not having the right insurance might put you in debt for the rest of your life, and given the fact that you read this article on budget travel tips, you most likely do not have that much money to simply throw them away.
You worked for your money hard, and being reckless does not pay off.
Conclusion? Always have travel insurance when going abroad. Always.
We never leave home without travel insurance that was designed to cover our expenses if something goes wrong during the trip.
Travel insurance protects against theft, flight delays, injury, illness, cancellations, and much more.
World Nomads provides travel insurance for travelers to cover their trip essentials, including sports and adventure activities.
SafetyWing is affordable travel insurance for backpackers, long-term travelers, and digital nomads.
Travel smarter and safer!
GET NO FEE CREDIT CARDS
You would not believe how small fees can grow to quite a large sum after a while. One of the fees travelers usually do not pay attention to are fees for using credit cards and for withdrawing money from ATM.
One of the things you should unconditionally do before your journey is to make sure that your credit card is suitable for traveling abroad.
That means that in the best case, you do not pay any fees for using your credit card.
Seriously, check it out as some banks and bank services still have outrageously high prices for using the card abroad, and you can lose precious dollars you could normally use much more wisely.
LOOK FOR HIDDEN COST
Before you pay anything, always make sure that the price is final, and there are no additional hidden costs as transaction fees, fees for early check-in, and so on.
Also, when you find a cheap flight ticket, always check first how much traveling in the destination costs, and how much services like a taxi from the airport cost as it can seriously affect your budget.
Travel Resources
Here you can find links to all the travel resources we use and which you might find helpful when planning your next holiday.
Accommodation: When looking for accommodation, we usually search hotels via Booking.com or Hostelworld.
Tours: Although we love to travel independently, some places are better to visit with a guided tour.
We prefer GetYourGuide for its easy-to-use interface and solid reputation. Another great alternative is Viator.
Rental Cars: When going on a road trip, we always use Rentalcars.com, a reliable site for booking a rental car in advance.
Flight Tickets: When looking for flight tickets, you can search Skyscanner to find the best price.
Travel Insurance: World Nomads and SafetyWing cover against risks of travel.
