Backpackers who travel around the world for months on end all have one thing in common – they all know budget travel basics. And they employ them constantly to make their money and their travels go farther.
The fact of the matter is, there are numerous ways to finance your way around the world and make it last as long as you’re creative, budget-savvy, and comfortable with being a little uncomfortable some of the time.
Now these are not basics you might know right away upon embarking on a long-term trip, they are more like things you come to realize as you go. But if you want a head start in saving that almighty dollar (or euro, or pound, or peso, or whatever currency you use), here are the 10 budget travel basics you should become familiar with before you take off:
>This post contains affiliate links, which means if you click one of the product links, we’ll receive compensation, which will help us keep producing our content. For more information, please see our Disclosure page.
1. be flexible
Just being flexible with your plans can end up saving you a whole lot of money. If you have the freedom to change the dates, times, destinations, airlines to what is cheapest at the time, you’ll undoubtedly save a ton. This especially applies for flights. Try using the Skyscanner or Google Flights calendar features to see which days are the least expensive to take off on. Or if you aren’t picky about the destination, try using the destination ‘Everywhere’ on Skycanner, ‘Anywhere’ on Kiwi, or by checking out the map of flight prices from your departure point on Google Flights. This has literally saved us thousands of dollars. Flexibility is key to budget travel.
2. go where you don’t need a visa or get a free visa on arrival
Not only are visas a headache to apply for, but they are also a huge damper on a budget. We always tell people to double check if the destination(s) they are planning for require visas, not only for knowing if there is a cost involved ahead of time, but also because not being aware of needing a visa could cost you the whole trip if you don’t have one or your application gets denied! If you are American, the best resource to check on visa information is the U.S. Department of State website. It will tell you if you need a visa, where you can get it, how many blank passport pages you need, how long you can stay, and so much more valuable information. If you aren’t American, find a similar government website for your country that gives you the same type of information if available. Visas are something you definitely don’t want to be unprepared for!
3. stay longer in one place
The less you move around, the more money you will save. There is usually reduced rates for weekly or monthly stays at certain accommodations. You will spend less money on transportation since you won’t need to book any long haul moving. You’ll have done all the touristy things early on and have more days towards the end to chill and really get to know the place. This is called slow travel and it can definitely save you a lot of money if you have the time and desire to stay put in one place for a while.
4. go cheap on accommodations
A lot of people spend a huge portion of their cash on where they’re sleeping at night, which only makes sense if you don’t plan to leave there much. But if you’re visiting a city because you want to experience it outside the walls of your room, it really shouldn’t matter how luxurious it is. Due diligence to make sure it’s clean with no bed bugs or anything like that is necessary, but if you’re a true budget traveler, you really just need a blanket and a pillow in a safe environment to catch some Zzz’s. The more uncomfortable you’re willing to get, the cheaper the price is likely to be.
You can stay with a local for free on Couchsurfing. You can rent a bed in a shared dorm hostel on Hostelworld. You can also rent a private dorm too, with options for shared or ensuite bathroom. You can rent out part of a local’s home or the whole thing on Airbnb. Or stay in a hotel, guesthouse, apartment, etc. booked through Booking.com. We don’t stay in hotels too much, but whenever we do, we always book through Booking.com because most of the listings have free cancellations up until the day of the reservation which is especially helpful if your plans tend to change or you are booking hotels to prove your itinerary when applying for a visa!
5. go cheap on transportation too
The ultimate way to kill two birds with one stone is to book a flight/bus/train ride overnight so your accommodation doubles as your transportation. It may not be the best sleep you’ve ever had, but if you can manage it, you’ll leave a little bit more room in the budget for other things. And you’ll leave yourself more time during the day not being stuck wasting time in a vehicle when you could be sightseeing instead.
But even if you’d rather not double up on accommodations and transportation, you can still budget your transportation. Shop around for multiple ways to get to your next destination and weigh the pros and cons of each method. Maybe the flight is really fast, but it’s super expensive. Maybe you can rent a car, but once you add in gas and insurance, and the thought of driving in a foreign country, the thought becomes unappealing as well. Maybe there is a train, but the time it leaves at is super inconvenient. Our favorite way to get around the world is on an overnight bus if the option is available. We like to use Rome2Rio app to discover how to get anywhere and for what cost. Remember travel budget basic #1: be flexible!
6. cook for yourself sometimes
We are not advocating that you should not try the local cuisine while you travel (the food is sometimes the best part)! BUT if eating out is proving to be really expensive where you are, don’t eat out for every meal. Going to the grocery store or the corner market to prepare your own food is an experience in and of itself. We always loved to buy groceries in other countries just to see what kind of unique products were sold there (especially baked goods!). Even just buying some fresh fruits and yogurt instead of getting breakfast at a café, can save lots and you won’t feel like you’re totally missing out on the food in that country.
7. don’t pay for checked luggage
This is basically a backpacker sin! Paying to take extra stuff on board a flight is a big budget travel no-no! The best way to backpack (for your budget and your sanity) is probably with a carry-on backpack only. But even if you can’t manage that, make sure to read the fine print before booking any air travel to know how much baggage allowance you are allotted for free. And if you’re super committed to saving your dough, you can always do what we did when we found out our checked bags were too heavy – put on as much clothes as you can until your bag is under the weight limit! Yes, we really did this, it really worked, and it was really hot and sweaty, but it was worth it.
8. practice smart banking
Typically, traveling with a huge wad of cash, whether in your currency or another, is not a good idea. And totally unnecessary. In some countries, credit and debit cards are not widely accepted so it is still imperative that you have some cash, but there is usually no reason why you should have so much on you at any one time.
We find that the best way to get new currency is to get it upon arrival in a new country via ATM. ATMs will give you some of the best exchange rates out there. And when you get your cash out of ATMs, you lessen the necessity of having so much on you. If you need more, you just go back to the ATM. By utilizing this method, you shouldn’t end up with lots of currency leftover upon departure (if you do, sometimes it’s hard to trade that currency in for your own or the next country’s). If you are familiar with ATM practices, you probably know that there is usually a charge when pulling out money from both the ATM you are using and your own bank from not using their branded ATMs. However, the best way to get around this is to get a debit card with a bank that reimburses your ATM fees from any ATM in the world. We have found this feature with our debit card and checking account with Charles Schwab. When your bank reimburses your ATM fees, it doesn’t matter how often you pull money out of the ATM. This means you can keep your currency level low.
And if you’re in a country that does accept credit cards in most places, it’s best to have a card that does two things: 1) has no currency transaction fees, and 2) rewards you with points, cash back, or miles. If your credit card does charge a currency transaction fee, you’ll likely pay around 3% for every charge that is placed on your card in a currency other than your home country’s. We dodged over $300 in currency transaction fees during our RTW trip by bringing our Chase Sapphire card with us. Not only does it not charge currency transaction fees, but it also rewards us 2% back on all travel and restaurant purchases! We put as much as we can on this card to take advantage of the rewards.
There are so many great credit cards geared towards travel on the market right now with new features and benefits being added constantly (ahem, free airport loung access and in-flight Wi-Fi anyone?). Check out this list of the Best Travel Credit Cards of 2020 to find the right one for you.
9. try a work exchange
Perhaps one of the best ways to stay in a location for a long period of time on the cheap is to work there in exchange for accommodations and/or meals. We did this in Australia with a site called Workaway. We had an amazing experience and ended up saving over $1000 for working on a farm and helping take care of 3 kids for a week in exchange for a free room and 3 meals a day. And the best part is, even though you are working, you can still check out the place in your free time. Our experience was so amazing that even the family we stayed with took us sightseeing. There are other sites that offer a similar service as well such as HelpX and WWOOF. Just make sure you look up the work visa requirements before committing to see if you need a visa to volunteer or do any sort of work exchange program.
10. buy travel insurance
Travel insurance might seem like a big expense, but when you look at the alternative in the unfortunate circumstance that something unlucky happens to you, you’ll be so glad you were prepared with the insurance. It’s peace of mind that you definitely don’t want to skimp on. We use World Nomads for all our travel insurance needs because they off long-term plans and cover so many different types of adventure activities! Check out our Resources page on Travel Insurance to read more about World Nomads.
There you have it! Are you ready to apply these 10 budget basics to your travel routine? These are some of the same principles we used to stay under our budget for our 2017 Round the World trip!
If you’re looking for even more ways to save money on your travels, check out these awesome travel hacks from our friends over at Eat Love Explore!
Is there anything super special you do to save big while you’re traveling – we’d love to see your tips in the comments!
Pin this for later!
Share this with someone who wants to learn how to travel on a budget!