Budget Backpacking: Save and Enjoy Your Next Adventure

So you’re ready for a big overseas adventure and you’ve saved the cash for it. However, you’re still minding your wallet – completely understandable! Budget backpacking and budget travel in general is easy if you stick to the tried-and-true advice in this article. With a little planning and creativity, you can visit your dream destinations easily.

Read on to learn about the top tips for backpacking on a budget.

Determine Your Total Budget

Firstly, before you create your frugal backpacking trip budget and create a trip itinerary, you need to know how much you’ll spend on the trip! Knowing your total budget is an ideal way to plan a trip. Why? When you have a specific amount of money to work with, you’ll know approximately how much you can spend on each line item such as hotels, excursions and food. This doesn’t mean you’ll know exactly how much, but it’ll help you get a ballpark estimate of whether you’ll be able to travel luxury-style or on an extreme budget.

Choose a Budget Destination

Once you know your budget, choose a wallet-friendly destination. If you’re looking to be as frugal as possible, choose a destination that’s off the beaten path. Here is a list of the top budget-friendly destinations:

  • India
  • Bolivia
  • Vietnam
  • Thailand
  • Cambodia
  • Nicaragua
  • Albania
  • Slovenia
  • Turkey

For more ideas on budget travel, check out this budget backpacker guide for more ideas. There are tons of wallet-friendly places to explore off the beaten path. Keep an open mind and you’ll discover so many amazing places!

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Save money on backpacking by choosing budget-friendly destinations.

Prepare a Travel Budget

After deciding on a wallet-friendly place or series of places to see, you’ll need to make a travel budget next. Make an estimate on how much everything will cost including daily spending on excursions, food, hotels and transport.

Determining Expenses and Your Savings Timeline

Backpacking on a budget means that you’ll need to know your budget. Additionally, you’ll need to make a clear plan regarding:

  • How much you need to set aside per month to save for the trip
  • The approximate cost of everything on your trip including hostels, restaurants, groceries, transport etc.
  • Your transportation options and how much you’ll fly vs. drive or take other modes to get around
  • How many will be traveling with you – will you be going with a partner, solo, with family or with a group of friends? Who you choose to bring alone can have a huge impact on your finances depending on the others’ ages and budgets.

Book Hotels and Flights As Soon as Possible

For budget backpacking, when booking travel arrangements, timing is key for everything. This includes airline tickets, booking hotel rooms, choosing excursions and arranging airport/ground transport. Due to the laws of supply and demand, companies will raise prices when demand increases. People are willing to pay more for a product or service if they really want it. Additionally, companies are trying to make as much profit as possible, so if they can raise prices and get a sale, they will!

How can you get the best deal on hotels and flights for your budget backpacking adventure? Book as soon as you can and use a price compare app such as Hopper and SkyScanner for flights and Trivago or Kayak to compare hotels and car rentals. You can also use these two apps to compare hotels.

Blog image on the Budget Backpacking: Save and Enjoy Your Next Adventure article on the Frugal Fun Finance website. Features image of a woman writing with her right hand and typing with her left hand. The woman is sitting at a desk and wearing a brown sweater. There is a laptop, phone, iPad and mug on the desk.
Save as much as possible by price comparing and booking flights and hotels as soon as you can.

While prices generally go up closer to your departure or accommodation date, sometimes you can get a last-minute deal. However, is it really worth risking the price going up to see if you can get a deal? Absolutely not! Don’t be stingy with travel. If you see a good deal, go ahead and book it. Don’t look at the prices after you buy either – you may feel buyer’s remorse, which isn’t a great feeling at all.

Budget Backpacking Means Being Open to Different Departure and Return Dates

Budget backpacking requires flexibility. To save money, be open to departing a day or two later. Why? Prices for airlines and hotels are generally cheaper during the weekday. Additionally, if you can, try to travel in the shoulder season which is typically September to November or April to May – aka when the kids are in school and it isn’t Christmas or March Break.

Budget Backpacking – Choosing Hostels over Hotels

Budget backpacking means cutting costs on everything – this includes accommodation. Where you choose to stay during your travels has a huge impact on how much you’ll spend. Hostels aren’t just for poor twenty-something backpackers. If you’re in your thirties or even older (or a twenty-something who wants something a little on the ‘higher’ end of budget accomodation), there are tons of options available for you that are:

  • Clean and quiet
  • Allow you access to a private room
  • Are located within or close to the city center
  • May cost more than the cheapest dorm, but are still a fraction of the cost of a hotel
Blog image on the Frugal Fun Finance website. Features image of a vintage building with a vertical black and white 'Hostel' sign on it.
Hostels are the best budget-friendly accommodation option when traveling.

Websites such as Hostelworld allow you to search for hostel accommodations where you’re visiting. You can filter by budget and room type (shared bathroom, private bathroom etc.) to book your accommodation.

True Budget Backpacking – Choosing a Shared Room Over a Private Room

A further note regarding budget backpacking: while you can book a private hostel room, as I alluded to before, they’ll cost more than a room in a shared dorm. Budget backpacking means you should consider a dorm room. If you’re comfortable with sharing space, consider it. Some hostel rooms give you the option of sharing with 1-3 travelers or a larger room with even more.

If hostel rooms for the entire trip are too much, why not alternate shared and private rooms? You can do a few nights in a hostel room in a more expensive country or city then choose a private room in a cheaper country or city. While this shared hostel rooms aren’t for everyone, if you want to truly do a budget backpacking trip, consider it.

The major cons include a lack of privacy and intermittent noise exposure from people coming into the room and leaving the room at different times of the day. However, on the other hand, you’ll meet travellers – all while saving money. In addition to saving money on accommodation costs, you’ll have a higher chance of meeting many likeminded travellers. No better way to get to know fellow travellers by watching a movie or playing late-night games together!

Choose a Hostel that has Perks – a Classic Budget Backpacking Tip

One more reason to opt for a hostel over a hotel: many offer amenities that will help you save money on your overall trip expenses. Here are the top amenities and facilities you should make sure the hostel has before hitting the ‘book’ button:

Shared Kitchen

Food can really cut into travel expenses. A snack here, a midday lunch there and the odd fancy dinner can really hurt your spending. When budget backpacking, choose a hostel with kitchen facilities that include a stove, microwave, fridge and cupboards to stow food. Go to the grocery store, pick up some ingredients and cook your own meals.

Find a balance between being frugal and cheap though. When you’re traveling, you’re there to experience the culture. Don’t go all the way to Japan just to eat microwaved ramen miss out on the fresh ramen, sushi and other delicacies! One great way to find balance is to choose to eat out for one meal of the day. Many countries like Portugal offer a menu du jour, a menu of the day, that serves a set meal at a nominal price.

Blog image on the Frugal Fun Finance website. Features image of a man and woman sitting at a desk. The man and woman are smiling and drinking coffee. There are another man and woman in the kitchen who are standing.
Choose a shared hostel with a kitchen to prepare your own meals and save tons on food costs.

Social Gatherings

While the main cons of staying in a hostel room are lack of privacy and noise exposure, besides the benefits of meeting others in your room, you can find travel friends other ways. Many hostels put on regular weekly social events such as pub crawls, movie nights and trivia evenings. In addition to regular social events, many hostels partner with local tour guides to offer free or low-cost walking tours.

Choosing a hostel with social events is often cheaper than booking your own social outings. How? For pub crawls, your first drink is often covered. Additionally, many events are cheaper than if you went with your own tour guide. Companies can offer tours and other excursions in bulk which means that you’ll pay less!

Laundry Facilities

A backpacking trip means exactly that – using a backpack when traveling. When you carry a backpack, you’ll have less space than a regular suitcase. This means that if you’re traveling for longer than, say, a week, you’ll need to find a laundromat. However, it’s best to choose a hostel with a laundromat. Laundry facilities can range from you using a shared washer and dryer and doing the clothing folding yourself to a full service where someone else washes, dries and folds for you.

When you choose a hostel with laundry facilities, you may end up paying more money than going to a regular laundromat. “How is that frugal and cheap?” you might say. Hear me out – when you choose a place with laundry facilities, you won’t spend money on a taxi or transport getting to and from a laundromat. Additionally, you won’t be spending hours locating a laundromat and folding your clothes.

Time is money, and when you have more time, you can spend it on travel. Being frugal isn’t just limited to money – budget your time well!

Rooftop

A rooftop? Why would that be included on a list of hostel facilities you should consider for your budget backpacking accommodation? If you enjoy relaxing on a patio after a long day of sightseeing, it’s easy to just find the nearest cocktail bar in the touristy district. While there’s no issue with this, if you want to go out more than once, you can save money by choosing a hostel with a rooftop.

If the hostel allows it, go to the convenience store and grab a couple coolers or beers to enjoy on the rooftop. If the hostel doesn’t allow this but has a rooftop, often the drinks are at a nominal cost and are a lot cheaper than your conventional whisky bar. While $20 or $30 saved here and there doesn’t seem like a big deal, this strategy combined with other budget backpacking strategies can really add up!

Blog image on the Budget Backpacking: Save and Enjoy Your Next Adventure article on the Frugal Fun Finance website. Features image of a pink cocktail with a dragonfruit on it.
To save money, make your own cocktails and bring your own drinks to your shared hostel rooftop.

Outdoor Pool

If you’re traveling to a warm climate and it’s hot out, there’s nothing better than cooling down in the pool after a long day of sightseeing! Choosing an outdoor pool can help you save money. How? Rather than finding a hotel with a pool pass and paying up to $20 or $30 a day for a pass, a hostel with a pool completely cuts out that expense.

Take on Short-Term Volunteer Stints

Budget backpacking doesn’t just mean paying for accommodation. Want to travel even longer? Many hostels offer short-term work stints in exchange for a bed and food. If you’re open to doing admin, cleaning or cooking, volunteering at a hostel is a great way to stretch your travel funds while doing a long-term budget backpacking trip.

Stay with Friends or Family – Budget Backpacking for Those with Connections

Budget backpacking doesn’t mean you have to stay in a hostel. If you have family or friends living in another country, why not stay with them for a bit? Even staying a couple nights with family or friends can really cut down on accommodation expenses. If you don’t have friends or family living abroad, try using an app like Couchsurfing to stay with someone for a short period of time. Be cautious and read reviews before committing to stay at someone’s home.

Budget Backpacking Means Eating Healthy Snacks Throughout the Day

You can save tons of money on food while traveling by going to the grocery store and stocking up on nutritious and filling snacks. During a full day of sightseeing, you’ll need to keep your energy up. Rather than stuffing your face with pastries (nothing wrong with this every once in a while, but not all the time!), when eating healthy foods, you’ll feel better and won’t drain your budget!

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Opt For a Rail or Transit Pass

If you’re traveling to a European destination, choosing a rail pass can help you save lots of money on transit. Generally, rail passes allow you to travel to a certain amount of countries over a specific time period. Look into different passes such as Eurail for Europe. There are many available, so take your time and find one that suits your budget and which countries you want to visit!

Choose Free Activities as Much as Possible

When embarking on a budget backpacking trip, you’ll need to choose free activities over paid ones. Here are some of the best ways to enjoy travel while spending little to no money.

Take a Trip to the Local Visitors’ Center

When you arrive in a new destination, check out the visitor’s information center. Visitor centers often have tons of information on free or low-cost activities.

Budget Backpacking Means Finding Free Outdoor Festivals and Events

When traveling, try to arrange your plans during a time when your destination has a local festival or outdoor concert series running. Many countries and cities fund free music, dancing and cultural events. Some include carnivals and food stands. What better way to enjoy your trip than soaking in the local culture?

Blog image on the Budget Backpacking: Save and Enjoy Your Next Adventure article on the Frugal Fun Finance website. Features image of various people dancing at a festival with various colored paint sprayed in the air.
Choose a time to travel when there are free festivals and concerts in the city you’re visiting.

Free Museum Admission Days

Many cities offer a free museum day or time slot during a specific day when admission to the permanent collection is 100% free. Check ahead of time to avoid disappointment and be sure to get to the museum early to avoid long lineups.

Explore the Local Food and Craft Markets

Another great way to enjoy the local culture: spend some time exploring the local food and craft markets. Many cities host large outdoor markets on weekend days. Try to find markets with free food and drink samples – a great way to save on food expenses while budget backpacking!

Discover the Local Architecture

Want to save money and still soak up the culture? Visit churches, cathedrals and temples. Many buildings also have free admission during the day, so you can go and see what the inside of the building looks like. Take your camera and capture the beautiful buildings. Overwhelmed and don’t know which places to pick? Find a local walking tour that will take you to the major buildings and town square, if there is one.

Blog image on the Budget Backpacking: Save and Enjoy Your Next Adventure article on the Frugal Fun Finance website. Features image of a Polish town square with a statue and various buildings.
Exploring town squares and the local architecture is a free and fun activity.

Find the Hidden Gems with a Local’s Help

If you want to find the city’s hidden gems, do it with a local! Use a website like Tours by Locals, Spotted by Locals or Viator to book a tour. Additionally, you can find locals and chat them up organically! Visit a local coffee shop or brewery and chat up the barista or bartender to find out the neighborhood’s best sightseeing, food and sunset view opportunities.

Budget Backpacking Means Taking Part in Low-Cost Activities

Let’s say you’ve exhausted all the free activities. Don’t feel guilty spending a little money on your travels! Here are the best low-cost travel activities when budget backpacking.

Do Your Own Bike or Walking Tour

Enjoy biking? Rent a bike and explore on your own. Many cities have bikes all over the place. All you have to do is rent them for 1 hour, 2 hours or more and get on the road. Before you set out, map out 3-5 destinations on Google Maps using the Trip Planner function. Alternatively, you can walk if the area is small enough. If you don’t know where to start, do a free walking tour. Many cities offer these – all you need to pay for is a tip to the guide if you enjoyed your experience!

Plan a Self-Guided Food Tour

Enjoy food and don’t want to go with a group? If you enjoy exploring on your own, pick 3-5 restaurants and hop from place to place. Aim for places with appetizers or sharing plates. You can order 1-2 dishes at a time to split with your travel mates. If you’re solo, order one app at each place.

Enjoy a Park Picnic

Hit up the grocery store for sandwich ingredients, snacks and drinks and enjoy nature in the local park! Many cities have beautiful green spaces. Enjoy the gorgeous greenery and sit down for a relaxing picnic lunch. A picnic lunch is a great way to enjoy nature, bond with fellow travellers and save money on food costs. Buying your own groceries and doing a park picnic is a lot cheaper than eating out at a restaurant, so you’ll have the funds in your budget for that bottle of sauvignon blanc!

Spend the Morning a Local Coffee Shop

Another budget backpacking idea: get to know the neighborhood by popping into a cafe for the morning. Bring your favorite book or just people-watch for a few hours. Enjoying coffee at a local spot is a great way to support a small business and take a break from the busyness of sightseeing.

Blog image on the Budget Backpacking: Save and Enjoy Your Next Adventure article on the Frugal Fun Finance website. Features image of a cafe with a counter, lights and chairs.
Enjoy a coffee and people-watch or relax while reading a book during your travels.

Design Your Own Brewery or Wine Tour

Here’s a fun frugal hack: pick 3 or 4 wineries or breweries and do a self-guided tour. Map out your destinations on Google Maps and walk or take transit or a taxi to each place. Finish off your tour by enjoying a special meal at a local restaurant!

Choose Slow Travel Over Fast-Paced Travel

What is Slow Travel?

Frugal backpacking isn’t just limited to where you stay and what you do – it also involves how often you travel. Slow travel means spending more time in one city or region. When you opt for slow travel, you can get to know each destination like a local. Slow travel often means choosing 1-5 destinations (cities or countries) over more than that. Additionally, you’ll save money by spending less on:

  • Airport transfer fees, taxis, buses and flights. When you go to less places, you’ll be taking less modes of transit.
  • Food that you’ll purchase at convenience stores. When you are on the go, you won’t be able to buy as many groceries. This means that you can potentially waste food if you buy too much. Additionally, if you’re always at airports and train stations, you’ll pay a lot more for food. Food and drinks are always a lot more expensive at trains and airports.

A Final Word on Budget Backpacking

With a little planning, budget backpacking doesn’t mean you have to skimp on the fun stuff. Plan activities ahead, book accommodation and hotels as early as possible and choose free or low-cost activities. Before you know it, you’ll be ‘that’ friend whom everyone asks “How can you afford to travel so much?”

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Janita is a frugal living expert and owner of Frugal Fun Finance. With over five years of personal experience finding and trying out the best ways to make and save more money, she's eager to share her knowledge. Janita's strategies have helped her save thousands of dollars for funding investments and traveling to over 20 countries.

Janita completed training in personal finance at The University of Western Ontario and McGill University, two prestigious Canadian universities. Her expertise has been shared on GoBankingRates, Yahoo Finance, and NASDAQ.com.