Backpacking on a Budget: How to Save Money while Traveling
The main thing that stops people from traveling is the idea that traveling is expensive, but in reality, it doesn't have to be. As a backpacker, you might have limited funds but that shouldn't stop you from exploring the world. In this post, we will share some practical tips that will help you travel smarter and cheaper. From choosing the right credit card to buying alcohol from convenience stores, read on to discover how you can make the most of your backpacking adventure without breaking the bank.
Establish a Daily Budget
Creating a budget and tracking expenses is an essential part of managing your money while backpacking. It may not be the most exciting aspect of your trip, but it can make all the difference in ensuring you stay within your financial means. First, start by setting a daily budget and keeping track of your expenses throughout the day. This will help you identify areas where you may be overspending and adjust your habits accordingly. Additionally, it’s important to plan for unexpected expenses such as transportation or medical emergencies. By tracking your expenses and sticking to a budget, you can have peace of mind knowing you won’t blow through your funds too quickly. With proper budgeting, you can make the most of your trip without sacrificing your financial stability.
Choose a Good Credit Card for Travel
If you are a frequent traveler or plan to be one, it's important to choose a good credit card that offers travel rewards and benefits. Look for a credit card that offers no foreign transaction fees, has travel insurance, and rewards points or cash back for travel-related expenses. Take a look at this link to see some popular travel credit cards. It's important to remember that credit cards are not accepted everywhere. If you plan on going to a cheap, third-world country (e.g. southeast Asia), chances are that credit cards are not commonly accepted.
Take Cash Out with Your Bank Back Home
Another tip for saving money while backpacking is to take cash out with your bank back home before you travel. This way, you can avoid expensive ATM fees and exchange rates. Make sure to check with your bank to see if they have any partner banks in the country you're visiting, as this can also help you save money on fees. It is also important to remember that having a lot of cash on hand is a risk, so only take out as much as you can afford to lose.
Minimize ATM Trips to Avoid Fees
When you do need to use an ATM, try to minimize the number of trips you take to avoid fees. Withdraw larger amounts of cash so that you don't have to keep going back to the ATM, and try to find ATMs that are affiliated with your bank or offer lower fees. Take out only as much as you can afford to lose.
Avoid Restaurants on the Main Roads
Restaurants located on the main roads in tourist areas tend to be more expensive than those located in less popular areas. If you're trying to save money, avoid main road restaurants and venture off to side roads instead to eat in local neighborhoods. You'll not only save money, but you'll also get to experience local cuisine.
Eat Street Food Instead of Restaurants
If you're really trying to save money, consider eating street food instead of restaurants. A few street purchases from a night stand is much cheaper than eating in a sit down restaurant. Street food is not only delicious, but it's also a great way to experience local culture. Just make sure to choose street vendors that have clean and hygienic food preparation practices.
Pregame with Alcohol from Convenience Stores
Drinks at bars and clubs can be very expensive and for frequent partiers, these costs will add up quick. To save money, buy drinks from convenience stores before going out, so that you can pregame cheaply and then buy only a couple of drinks while you are the club or bar. You can also look for happy hour specials and promotions to save money on drinks.
Stay in Shared Rooms of Hostels
Accommodation can be one of the biggest expenses while backpacking. To save money, consider staying in shared rooms of hostels instead of private rooms or hotels. Not only is it cheaper, but you'll also get to meet other travelers and make new friends.
Rent Motorbikes Instead of Taking Taxis
Finally, if you need to get around town, consider renting a motorbike instead of taking taxis. Taxis can be expensive, especially if you're traveling long distances. Renting a motorbike can give you the freedom to explore at your own pace, and it's often cheaper than taking a taxi.
Goodluck!
Traveling can be cheap if you lower your lifestyle and partake in these money-saving tips. If you're not smart about your money and budget, traveling will leave you broke. By following these tips and tricks, you can optimize your money and save while backpacking, allowing you to enjoy your travels to the fullest. If you have any questions or concerns, leave a comment below. Safe Travels!