How To Travel on a Budget

Travel often feels like a luxury reserved for the wealthy. But what if we told you incredible adventures are achievable, even on an average budget? By embracing smart planning and a focus on local experiences, you can still explore new places without straining your wallet.

Here are practical, achievable strategies to save money while traveling on a budget. 

Planning Your Trip

Start Planning Early 

The magic of budget travel starts with a little foresight. By giving yourself ample time, you can research and compare destinations, flights, accommodations, and activities, build a budget, and save for the trip.

Airline prices fluctuate constantly, so planning early gives you time to track and compare prices. Tourism sites like Booking.com, Airbnb, Turo, and others offer early bird discounts for booking a certain number of days in advance. You’ll almost always save by booking train or bus tickets in advance, starting as much as 12 weeks before the travel date.

Choose Budget-Friendly Destinations

A trip to Disneyland is notoriously expensive. The same goes for Hawaii. The first rule of traveling on a budget is choosing an affordable location—and luckily, the world is full of worthwhile destinations that won't drain your wallet. Regions like Southeast Asia, South America, Central America, and Eastern Europe are all culturally rich and known to offer a bang for your buck. 

Use a currency exchange tool to check how far your money will go. 

As of May 31, 2024:

• $1 USD = 36.81 Thai Baht
• $1 USD = 893.71 Argentine Pesos
• $1 USD = 7.77 Guatemalan Quetzales
• $1 USD = 359.07 Hungarian Forints

In the U.S., consider trading a pricey NYC or Vegas vacation for a trip to the South or Midwest. Destinations like the Great Smoky Mountains, the Great Lakes, the Gulf Coast, or the coastal Carolinas are likely to be cheaper and less overrun with tourists.

Set a Travel Budget

To enjoy your trip without going into debt to pay for it, create a travel budget. There are many ways to create a budget. For example, you can either set an amount you are allowed to spend for the entire trip and then divide by the number of travel days. Or, add up a list of all expenses and figure out how much you need to save or set aside.

To get a realistic idea of how much your trip will cost, make a list of all travel expenses, including: 

• Transportation to and from your destination and while you’re there (such as flights, rental cars, ride shares, train tickets, and public transportation)
• Accommodations for the entire trip
• Visas, permits, vaccinations, or medications, if applicable 
• Food, including meals in a restaurant, groceries, snacks, and drinks
• Entertainment like museums, tours, shows, and excursions
• Checked baggage fees, if any 
• Phone and internet such as roaming charges, purchasing a local SIM card, or eSIM.
• Souvenirs, toiletries, and sundries
• Gratuities for drivers, housekeepers, and tour guides 
• Travel insurance

Allocate a small buffer for unexpected costs or minor emergencies.

Use a site like Numbeo to calculate and compare the cost of living in your destination. The site shows average costs by country and city for things like a loaf of bread, milk, and beer in a grocery store, as well as for meals in restaurants, transportation, sports and leisure activities, utilities, clothing, and shoes. 

Personal finance and travel expert Danielle Desir Corbett says you can "Create a realistic travel budget by searching for vacation cost breakdowns by travel creators who share how much it actually costs to visit a destination.”

Corbett also notes that “Other websites like budgetyourtrip.com share real travel prices for hundreds of countries,” and reminds travelers to “Be mindful of the differences between shoestring, mid-range, and luxury travel budgets and the impact of inflation over time.” 

Saving Money on Transportation

Find Cheap Flights

Track airfare prices with tools like Google Flights, Skyscanner, or Kayak. Set price alerts to be notified of drops and get an idea of low, average, and high prices for a trip. Be flexible with travel dates. If you can, travel on a weekday for better rates. Use the calendar or date grid feature to see which days have the best prices. 

If you’re flexible with the destination, sign up for Going.com. You pick your home airport. Then the site scours the internet and notifies you by email about economy flight deals in the US (free tier) and international flight deals (paid tier).

Use Public Transportation

Taxis and rental cars will eat up your travel budget, fast. Consider using public transportation (like trams, buses, subways, light rails, cable cars, and ferries) to save money and get around the city efficiently. Public transportation around the world is well-documented and easy to plan via Google Maps. 

Consider Alternative Transportation Options

Going from Madrid to Barcelona, or from Paris to Lyon? For intercity travel, FlixBus runs over 400,000 cheap and reliable bus routes in over 40 countries across Europe, North America, South America, and Asia. Or, book a ride with BlaBlaCar. The ride-sharing app is available in 21 countries and lets you catch a ride with local drivers who have extra space in their cars.

For European travel by train, you can’t beat the Eurail pass. These multi-trip tickets let you book flexible travel (within a specified timeframe) for 33 European countries. At $315 USD for seven travel days within one month or $369 for 10 travel days within one month, Eurail’s Global Passes cost a fraction of booking individual tickets.  

Accommodation on a Budget

Stay in Budget Accommodations

Hostels are known for their low-cost, dormitory-style fittings attracting the backpacker crowd. Many young and solo travelers love hostels for their social atmosphere. And, of course, the chance to save some coins. 

Like all travel experiences, hostel experiences vary widely. Some may have 20 to 30 rooms, each housing eight to 12 bunk beds, and a large cafeteria hall that pumps out cheap breakfasts. Others are small and cozy, with a family-run vibe and fewer beds to a room. Many hostels now include in-room lockers for each guest and a privacy curtain that you can close around your bunk. 

While hostels may not be a good fit if you need absolute privacy, some also offer private rooms with ensuite bathrooms. These book up fast, so plan ahead. To compare prices and amenities, read reviews, and see pictures before booking, check out HostelWorld or Hostelz.

More expensive than a hostel and slightly cheaper than a hotel, guesthouses are another great option for traveling on a budget. You can forget the pool, fancy restaurants, or gym access of a larger hotel–but in exchange, you’ll get a more personal touch at an affordable price. 

With guesthouses, you can count on having your own room and bathroom, and possibly a homemade breakfast included in the price. Here, you’ll be more likely to get local tips from the owners or staff.    

Use Sharing Economy Platforms

Airbnb is not really a budget option anymore, but the chance to stay in a private home often means the space is situated away from tourist hot spots. So, the restaurants, bars, and attractions near your stay will likely be cheaper and more local. Plus, you can save money by cooking meals at “home.” 

One Airbnb trick is that rather than booking an entire home or apartment, you can book a single room in an apartment where the host is also living. In some countries, hosts will rent out multiple rooms in a home or apartment to separate travelers, which functions like a more upscale and semi-private hostel. Bonus, if no one else has booked the other rooms while you’re there, you end up with your own place. 

Many budget travelers swear by the site Couchsurfing to find cheap accommodation on the road. For a subscription fee of just a few dollars a month, members gain access to a network of locals offering free short-term homestays (usually a couch or spare room) to other travelers.

For an annual fee, sites like TrustedHousesitters, MindMyHouse, and House Sitters America will match you with people offering free accommodation in exchange for pet and house-sitting services. You have to create a profile including references, and getting picked for a stay can be somewhat competitive. But they’re a great way to save money and stay comfortably in cities around the world. 

Consider Alternative Accommodations

If you’re looking for adventure or traveling long-term, there are plenty of budget-friendly alternatives to your typical hotel, guest house, or vacation rental.    

Most major national parks in the U.S. offer developed camping facilities. Some parks are free, while others charge up to $35 per vehicle, which gives you up to seven days of in-and-out park usage. If you plan to visit at least three parks, the America the Beautiful pass is your best bet, at $80 for annual access to all parks. You’ll need to check each park individually for information on campsite amenities and costs. 

Workaway is an informal cultural exchange and homestay program. Volunteers or "Workawayers," contribute a pre-agreed upon time frame (often four to six hours per day) in exchange for lodging and food. Workaway opportunities range from organic farms, wineries, and hostels to families seeking help with childcare and English teaching.

Worldwide Opportunities on Organic Farms, known as WWOOF or WWOOFing, is another volunteer exchange and education program with opportunities in 130 countries.

For paid jobs, try being an au pair, bartending, teaching English or yoga, or working in a ski resort. Over 45 countries now offer digital nomad visas for remote workers over the age of 18 who can provide proof of a specific monthly income (varies per country).

If Australia is on your bucket list, their working holiday visa could be a dream come true. The program lets people 18 to 30 years old (or 35 years old for some countries) stay and work in the country for up to 12 months. At $635 AUD, the visa itself is not cheap, but the ability to work helps fund your trip.

Saving Money on Food and Drinks

Cook Your Own Meals

To eat cheap while traveling, skip the restaurants altogether. Buying food at the supermarket or cooking meals will almost always be cheaper than eating out. Most hostels will have a kitchen with a fridge where you can store food, and a stove and/or oven for cooking. Airbnbs or vacation homes will too, just make sure to check the amenities carefully so you’re not disappointed.

Practically any foreign country you visit will have a local food market at least a few days per week. The food there is often cheaper and fresher than in supermarkets. Plus, you’ll experience the sights, sounds, and smells of a country. Ask your hostel or host when and where to find it.

Eat Like a Local

Cities like Mexico City, Bangkok, Rio de Janeiro, and Istanbul are known for having some of the best street food in the world. Even traditionally expensive cities like Tokyo or Paris will have street carts or stands offering delicious eats for much cheaper than in cafes or restaurants.

In the U.S., check out food trucks for relatively cheap options. Modern, food court-style eateries are popping up in the U.S. and abroad as well. Trendier than your average shopping mall food court, these upgraded spots offer a surprising variety of counter-service options at budget-friendly prices.

Often, simply venturing a few blocks away from main tourist attractions leads to cheaper and more authentic options.

Research Affordable Dining Options

In heavily-touristed areas, plopping down at the first place you see is a good way to overpay for an underwhelming meal. Instead, do some research beforehand to find budget-friendly options. 

Google, Trip Advisor, Yelp, and Open Table all use dollar symbols (such as from $ to $$$$) to indicate how pricey a restaurant is and then compare against reviews. Or, instead of using sites like these, travel blogger Kendyl Grynder suggests “searching for ‘[destination] cheap eats blog’ to help find better options from travelers who have experienced the location.”

When in doubt, ask a local what their favorite restaurants are. 

Sightseeing and Activities on a Budget

Visit Free and Low-Cost Attractions

Churches, castles, and ruins are often free or cheap to visit, and some museums or galleries have certain admission-free days or hours. For example, catch Picasso's legendary Guernica at Madrid's Museo Reina Sofía for free on Monday or Wednesday through Saturday (7-9 p.m.) & Sundays (12:30-2:30 p.m.).

Run by local guides and available in over 120 countries, free walking tours teach you more than just walking around by yourself. The tours are free, but they generally ask for a tip at the end.

Meetup.com can be another cheap way to find unique events, connect with locals, and learn about new places. Finally, Couchsurfing isn’t just for accommodation—it also facilitates organizing hangouts or exploring with locals.

Explore Nature and Outdoor Activities

Want to relax and soak up the city vibe without spending a dime? Head to a park, plaza, or square for some prime people-watching and a dose of public art. Public bicycle-sharing stations are now in many cities, so you can explore on two wheels at a low cost. Fresh air is always free—consider exploring natural attractions like rivers, waterfalls, or hiking trails. 

Use Discounts and Deals

Especially in Europe, attractions like museums, art galleries, and historical sites may offer student or senior discounts, with ID for verification. A city tourism card may also help stretch your budget. From Dubai to Venice to Copenhagen, these all-in-one passes give you free or discounted entry to popular attractions, and sometimes public transportation access.

Websites and apps like Groupon, Travelzoo, and GetYourGuide also aggregate deals and discounts on tours, activities, and attractions in various cities.

Money-Saving Travel Tips and Hacks

Travel During the Off-Peak Season

Skip the crowds and embrace the charm (and savings) of off-peak travel. In the Northern Hemisphere, the off-season generally falls between November to March, excluding major holidays. For the Southern Hemisphere, the off-season is typically from June to August.

Don’t forget to consider local festivals or events, since a destination might be bustling during that time, even if it's technically the off-season. And in many Southeast Asian countries, the off-season may overlap with the monsoon season. Research using tourism sites, travel blogs, and forums to find out the best time to visit your destination.

Use Travel Rewards and Loyalty Programs

Travel sites like Booking.com and Expedia have loyalty programs with tiered statuses that let you rack up rewards. Booking.com’s Genius program includes perks like free breakfast, free cancellation, and 10-20% discounts on bookings. With Expedia One Key, you save 10-30% on hotels and earn cash back on bookings across Expedia, Hotels.com, and Vrbo. 

So-called “travel hackers” use credit card points and airline miles to book free flights—sometimes business or first-class ones—and accommodations. Travel hacking takes planning to truly maximize, but the basic idea is that travel credit cards offer a sign-on bonus of anywhere from 20,000 to 120,000 points for spending a certain amount (usually between $1,000 and $4,000) in the first three months. After that, you can earn points (sometimes double or triple) on everyday purchases. 

According to Grynder, using partner airlines can also help with getting good flight deals.  “If you have a bank travel card, such as Capital One or American Express, you can transfer your points to partner airlines and get better deals. I just flew from New York City to Madrid for just 17,000 miles and less than $100 Iberia Avios, which is a steal.” If you're new to using transfer partners, Grynder notes, “The easiest way to find these awards is with a program like Point.Me or Roame.” 

Pack Smart

Packing light saves you money on checked baggage fees and time at the airport and eliminates the chance of your luggage getting lost. A few tips that experienced travelers swear by:

• Use packing cubes to compress and organize your stuff. 
• Pack neutrals that you can mix and match to build multiple outfits.
• Do laundry while you’re there, either by hand washing in your accommodation or using a laundry service.

Frequently Asked Questions (FAQs)

The Bottom Line 

With a little planning, some flexibility, and these budget-friendly strategies, you can have unforgettable adventures without sacrificing your financial well-being.