40 Budget Tips for Backpackers

What holds many people back from traveling is a lack of money. What many don’t know is that you don’t necessarily have to be rich to travel. With the right planning, a spirit of adventure and discipline, it’s possible to travel for a long time while spending really little. Below you’ll find all my tricks and tips for traveling longer while spending less!

Before you leave

1. Flexibility first

Prices, as you probably know, vary enormously depending on when you travel. Travel in the low season whenever possible: not only will you get better prices, but also fewer tourists in particularly popular places. If you really can’t be flexible with your dates, then try to be flexible with your destination; in short, don’t go to Ibiza in the middle of August and expect to spend little. Be curious and look for alternative destinations.

2. Create a smart itinerary

Avoid zigzagging around and build an itinerary that lets you get around as efficiently as possible. In this guide you’ll find all my tips for planning a trip as well as possible.

3. Don’t buy a guidebook

The web has more and more information, and there are loads of travel blogs as well as forums. Finding all the information you need is no longer as hard as it used to be. An extremely useful site I’d recommend, especially if you know a bit of English, is wikitravel, besides my blog, of course!

4. Save on plane tickets

The plane ticket is often an expense that has a huge influence on the total cost of a trip; read my guide on how to find cheap flights, check sites like Secret Flying regularly and become a cheap-flight ninja!

5. Travel light

It may seem strange, but traveling light can really save you a lot of money. Ideally you’d manage to travel with carry-on luggage only, so you avoid pointless surcharges from the airlines. Remember to weigh your luggage before you leave: if you’re slightly over, wear a few extra layers or fill your pockets to stay within the weight limit. Plus, if your luggage is heavy, the temptation to take a taxi rather than walk will be great too. I believe a good backpack is the ultimate solution for budget travelers.

6. Always carry a water bottle

The cost of water can also have an impact on the cost of your trip. Always carry a water bottle or an empty bottle to refill. In some countries it’s not advisable to drink tap water, but it’s still worth having a water bottle because many hostels/hotels provide large jugs of drinking water for their guests. The solution suited to every situation is a water bottle with a built-in filter.

Here you’ll find the complete list of the things I bring on a trip to be ready for anything and travel light at the same time.

7. Fight expensive mishaps

For trips outside Europe, take out good travel insurance that covers you for at least medical expenses and personal liability. In this article I compare the ones I consider the best value for money. If you’re an EU citizen traveling within the European Union, I advise against taking out a policy, because you enjoy the same rights as people insured in the country you’re in. It’s explained here.

If you’re looking for more tips on how to travel safely, then I recommend this article.

8. The student discount

Are you a student? There’s a chance you’re entitled to a discount abroad too; just remember to bring your student card, with a photo.

Managing your money

 

9. Use a card with no currency exchange fees

Currency exchange fees are expressed as a percentage and can reach as much as 3%; this means that if you’re withdrawing in a currency other than your own, on top of the withdrawal fee, which could already be a few euros, you’ll have to pay an extra 3% on the total amount withdrawn.

For transactions in your own currency (for example within the eurozone if your card is in euros) the problem doesn’t exist, but still watch out for the fixed withdrawal fee abroad.

The best cards for traveling abroad

10. Pay by card

Every time you go to the ATM, bank fees add up, especially outside the European Union. So try to pay by card whenever possible, but avoid doing it in sketchy places and always ask whether there’s a fee. Some cards even offer cashback, which basically works out to a small discount on your purchases.

11. Watch out for islands

If you’re about to leave for a remote destination such as a small island, then try to bring everything you’ll need with you, food included! Islands, and more generally all the remote areas of a country, have inflated prices and often have no ATMs, so make sure you have enough cash with you.

12. Change your money without paying fees

Currency exchange offices, especially at the airport, don’t always have favorable exchange rates. The best solution is to change your money with other travelers who may be traveling in the opposite direction to you, using the official exchange rate.

13. Try several banks

Besides the withdrawal fee you pay your own bank, the local bank may also want its cut (in Argentina and Thailand it can be more than 5€!). So try to find out whether there are local banks that offer free withdrawals, or at least look for the cheapest one. The fee, if there is one, is normally shown before you complete the withdrawal.

14. Watch out at airports

Avoid buying food and changing money at the airport. ATMs are also best avoided, because they always have very high withdrawal fees. As a rule of thumb, avoid spending your money at the airport.

Transport

 

15. Use public transport

Use public transport as much as possible. In cities, the metro, if there is one, is normally extremely cheap and efficient; find out whether there are daily or weekly passes and do the math to see if they’re worth it. Also remember that it’s almost always possible to use public transport to get from the airport to the city center.

16. Avoid taxis

Avoid taxis and walk as much as possible. If you have no alternative, then consider apps like Uber, GrabCar (very popular in Southeast Asia) or BlaBlaCar. The first two for a cheap taxi service, the third for long distances. If you’re forced to take a regular taxi, then make sure you agree on the price before getting in. Especially in developing countries, the meter isn’t used.

17. Travel at night

Take night buses or trains for long distances: you’ll save the money for a night’s accommodation and you won’t feel like you’ve wasted the whole day getting from one place to another.

18. Car relocation

Car relocation doesn’t give you much flexibility, but it’s still a budget option. It consists of returning a car that had been rented for a one-way trip back to its base. The rental company covers practically all the costs, but sets the dates for the transfer.

19. Pedal

Cycling from one place to another obviously isn’t for everyone, but if it doesn’t scare you, your transport costs come down to the maintenance of the bike itself.

20. Try hitchhiking

Hitchhiking is the ultimate solution for the budget traveler. Besides being completely free, it’s relatively safe almost everywhere. In many countries where not everyone can afford a car, hitchhiking is perfectly normal. Be careful, though, because in some countries it’s illegal and there are precise rules to follow if you want to ask for a ride.

Accommodation

 

21. Sleep in hostels

Do you turn your nose up at hostels? Take a look at this page. Sleeping in hostels will save you a lot of money. In some countries a night in a hostel can cost less than 5€, and more and more hostels offer private rooms at very competitive prices, which are great solutions for couples and families or simply for anyone looking for more privacy than they’d have in a dorm.

22. Airbnb for apartments, houses and rooms

If you really don’t want to sleep in a hostel, then consider Airbnb, a cheap solution for renting rooms or entire apartments/houses directly from private owners.

23. Consider the location

Choose your hostel, or your accommodation in general, with the location in mind. Especially in cities, being close to points of interest and public transport hubs can save you a lot of time and money.

24. Don’t always book online

Booking sites like Booking and Hostelworld pocket a commission of at least 15%. Once you’ve done your research, contact the property by email or show up in person: you’ll most likely be offered a better rate.

At worst you’ll pay the same price after getting the chance to see the place in person. Only avoid doing this if you’re traveling in high season or during holidays, so you don’t end up without a place to stay.

25. Try couchsurfing

Couchsurfing is the ultimate solution for the budget traveler: it gives you the chance to be hosted for free by another member of the site and to get to know locals at the same time.

26. Sleep under the stars

Go camping! A tent or a hammock can give you a place to sleep for free practically anywhere, or at any rate at a really affordable price in the case of paid campsites.

27. House sitting and house exchange

Some families may go on vacation and not want to leave their house unattended for weeks. Or they may have a second home that stays closed and empty for many months of the year. A great way to find accommodation without spending anything and to spend some time, short or long, in one place.

House sitting means looking after a house, and often the pets, for any length of time, with the chance to stay there for free. House exchange, on the other hand, is more simply something like “You give me your house and I give you mine for a certain period”. No money changing hands and no red tape.

Food

 

28. Cook your own meals

Especially in countries that aren’t exactly budget destinations, cooking will save you a huge amount! Most hostels have a kitchen, and if there isn’t one you could make sandwiches practically anywhere. Remember that if you’re traveling there’s nothing wrong with cooking; it certainly won’t be the time spent making food that ruins your trip!

29. Don’t always cook

When, on the other hand, the country you’re visiting allows it, then don’t cook! In some areas eating out can be extremely cheap – we’re talking 1-2 € a meal. Especially at lunch, try street food and avoid restaurants full of tourists or those with “We speak english” on the sign; eat where the locals eat and always go for the menu of the day.

30. Included breakfast

Breakfast included for the same price is obviously a bonus; read the reviews to find out what kind of breakfast it is: a big breakfast and a few snacks at lunch will get you through to dinner.

31. Bin diving

OK, here we’re talking about tactics that are interesting, to say the least. Bin diving means fishing expired products out of supermarket bins; I’ve never done it personally, but it’s a relatively common practice among hardcore travelers and it also helps avoid waste. About a third of the food produced worldwide is wasted.

32. Visit the local market

Visit the local market, which often offers extremely competitive prices compared to supermarkets, especially on fresh produce like fruit and vegetables. They’re also extremely interesting places to visit, where you can come into contact with the people and the culture of the country you’re in.

Other useful tips

 

33. Join your hostel’s free activities

If you’re staying in a hostel, then join the free activities on offer! Hostels often organize activities to get their guests socializing – dance classes, cooking lessons and much more.

34. Join a free walking tour

These tours have become extremely popular in recent years and can be found in almost every big city. It’s a walking tour led by a local. The guide expects a tip, obviously not mandatory, but definitely recommended if you enjoyed the tour. To find information about them, type the name of the city plus “free walking tour” into Google.

35. Stop burning your money on smoking and alcohol

Alcohol and cigarettes kill your budget. If you really can’t resist a few drinks in good company, then buy them at the supermarket. Hostels often let you drink your own alcohol as long as there’s no bar on the premises; in that case, be smart!

36. The price is often negotiable

Haggle over the price! Especially in developing countries, all prices are negotiable, from taxi fares to souvenirs, from tours to many other things! Don’t be shy, and above all don’t overthink it: in many cultures “haggling” isn’t seen as a sign of rudeness. A tip? Always pretend to be only vaguely interested and the discounts won’t be long in coming.

37. Visit the tourist office

The tourist offices you can find in many cities provide plenty of maps and information, all completely free.

38. Volunteer

Working in exchange for room and board in some community or farm, or simply behind the reception desk of a hostel in exchange for a free bed, are extremely common practices. There are several platforms that offer this kind of opportunity. Workaway is probably the most popular, but there are many alternatives, such as Worldpackers ($10 off the annual membership with the code “nicola10”), which even lets you earn money while volunteering, and finally wwoofing, the latter focused above all on sustainability.

39. Strength in numbers

Whether you’re traveling with a group of friends, your partner or simply people you met the day before, take advantage of it! Renting a car, sharing a taxi, asking for a discount on your accommodation or simply cooking: done as a group, in the long run it will save you a lot of money.

40. Avoid organized tours

Avoid any tour unless it’s the only way to do a particular activity. I’ve often been told “you need a guide to do this or that”; often it’s just pure marketing.

One of the thousand examples I could give you is the hike up Pico do Papagaio on Ilha Grande in Brazil to see the sunrise. The tour costs 135 reais (about 24€ at the current exchange rate); needless to say, with my flashlight and the help of Organic Maps I did it for 0€, after being advised against it because I could have gotten lost in the jungle at night.

OK, now that you’ve read all these tips, try to put as many of them into practice as possible and you’ll immediately see your expenses go down. As you’ve probably gathered, the secret lies in using unconventional methods, but above all in getting rid of the vacationer mindset and getting into a traveler’s mindset.

If you have any other useful tips, or need any clarification, leave a comment!

Planning a trip? Check out these posts:

Which travel insurance to choose

Which travel backpack to choose

The best cards for traveling

What to bring on a trip

Since I no longer run ads, if you found this article helpful, please consider purchasing your travel insurance through one of the links on this site. Doing so supports my work at no additional cost to you. For EU and UK residents, I recommend True Traveller. For everyone else, I recommend HeyMondo, which offers a 5% discount. Thank you for your support!

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