How to Travel the World on a Budget (as low as $10/day)

It’s a popular myth that you have to be rich to travel, but the truth is you don’t. With the right strategies, you can travel the world on a budget, or even for free.

During a year of backpacking through South America my budget was as low as $10 per day and never exceeded an average of $30 per day, even in notoriously expensive areas such as Patagonia. It’s important to note that I didn’t achieve this by compromising comfort. Instead, I maximized my limited budget by being strategic in how I traveled for cheap.

In this article I’d like to share these budget travel tips with you, equipping you with the knowledge to embark on your own affordable travels around the world. I’ll cover insights on how to make the most of a tight budget once you’re already on the road. If you’re looking to build your travel fund, I’ve written about how to save money for travel separately.

Before we get started, I’d like to stress that regardless of your budget, travel insurance is a non-negotiable necessity. My preferred choices are SafetyWing and World Nomads. Accidents and illness are common amongst travelers, and you don’t want to be stuck with a huge medical bill.

Travel to Cheap Places and Off-Season

To travel for cheap, pick budget-friendly destinations. There are many places in the world where you can have amazing experiences on a tight budget. For example, Southeast Asia or South America will be a lot more affordable than Europe or North America. 

Also consider traveling in shoulder or low seasons. Entrance fees, flights, and accommodation will be cheaper. Be mindful of local holidays and festivals, which can skyrocket prices and lead to shortages in accommodation.

If you’re backpacking across an entire continent (or even the entire world!), be aware that prices vary significantly between countries. For instance, in South America, your money will go much further in Colombia, Ecuador, Peru, and Bolivia compared to Chile or Uruguay.

Manage Your Money Wisely for Budget Travel

When arriving in a new country, try several ATMs to identify the one with the lowest fees.

Credit cards may have transaction fees, so it’s advisable to carry cash for such situations. When using a card, choose one that will give you points for travel-related expenses. I recommend the Chase Sapphire Card, which is very popular amongst travelers. 

When exchanging foreign currency at your destination, shop around for the best rate. If you’re crossing a land border between two countries, the most favorable exchange rate between the two currencies is often found in border towns.

Lastly, guard yourself against common scams. If you need a refresher, read my guide to travel safety.

Find Budget Travel Accommodation

Hostels

Even if you don’t want to stay in a dorm, a private room in a hostel will still help you travel for cheap. If you’re willing to forgo fancier amenities you can drive the price even lower, getting a bed in a clean but simple dorm for a few dollars a night. 

If you’ve never stayed in a hostel before, read why I think you should give hostels a try!

Couchsurfing

Couchsurfing is a great low budget option, and as a bonus you’ll meet cool new people! Remember that hosts usually expect you to socialize with them, so if you’re a strong introvert, this may not be the best option for you.

Camping for Budget Travel

Camping can be an affordable or even free accommodation option when traveling the world; just bring your own gear. Campgrounds in touristic areas usually have amenities like wifi, electricity, a kitchen, and a sheltered common area. Don’t be intimidated if you’re new to camping; many people, including myself, first started while traveling.

Camping gear is also the gateway to trekking, which is a fantastic low budget travel activity. If you’re interested but unsure where to start, check out my guide to backpacking for beginners.

Budget-Friendly Ways to Book Accommodation

Whether you choose to stay in a hostel or more upscale accommodation, I recommend using Booking.com for reservations. It consistently provides competitive prices and additional discounts the more you use it. Occasionally I’ll use Hostelworld, which sometimes has properties not listed on Booking.com. Both platforms function worldwide.

If you don’t want to reserve in advance, here are ways you can save money when selecting your accommodation:

Reserve your accommodation in person. Sometimes, showing up at an accommodation without a reservation can result in lower prices. You can also negotiate directly with the accommodation via phone or messaging. Sometimes you’ll get cheap prices this way, but a lot of the time I’ve actually gotten better deals through Booking.com’s loyalty program! 

Search for unlisted accommodation. In remote parts of the world, accommodations may have limited online presence. You can often score a good deal by walking around town and visiting them, asking to see their rooms and for their prices. You can also try your luck in negotiating the nightly rate.

Volunteer or Work to Stretch your Travel Budget

Volunteer at Hostels

Travel the world for cheap by working in hostels. This work-and-travel job typically involves 4 hours of work per day, 5 days a week in exchange for free room and board. This is a very popular option for budget travelers. At a few hostels I stayed at, there were more volunteers than guests!

Find Work on Worldpackers and Workaway

Worldpackers and Workaway are platforms that connect you with volunteer opportunities that allow you to explore the world on a budget. Opportunities typically provide room and board, and some are paid. You’ll find standard hostel gigs in addition to some really interesting projects that will let you acquire new skills (teaching, construction, helping at eco-farms, etc.).

Budget Travel: Work Your Side Hustle

If you have a talent that is travel-friendly, consider working while traveling. I’ve met countless people who are funding their travels by working as tattoo artists, selling their art in touristic areas, or working as street performers.

Save Money on Food While Traveling

Cook to Stretch Your Travel Budget

Stay somewhere with a kitchen and cook your own meals, which is often cheaper than eating out. If you’re a vegetarian like me, you’ll appreciate having a kitchen because restaurants in some parts of the world may lack good vegetarian options. Hostel kitchens also have a box of “freebies” — items left behind by fellow travelers looking to lighten their load.

Shop Smart

When traveling the world, you should explore the local markets. Not only is this a unique cultural experience, but food prices will be lower than in the grocery store and sometimes negotiable. Local markets are typically open from early morning to mid-afternoon and are a good place to grab a cheap breakfast or lunch.

Eat Local Food

In most parts of the globe, western meals cost at least twice as much as local food. Street food, marketplaces vendors, and local restaurants will be more affordable. Just make sure to verify the cleanliness and safety of the food. Restaurants a few streets away from tourist hubs will also be more budget-friendly.

Eat Breakfast and Lunch Out, and Cook Dinner

You can get cheap breakfasts and set-menu lunches in restaurants and marketplaces. Dinner tends to be more expensive, so if you’re on a tight budget it’s better to cook that yourself.

Save Leftover Food

Bring a tupperware container to restaurants to pack leftovers. I learned this after failing almost every time to finish the gigantic lunch portions in South America! Restaurants might not provide to-go containers, offering you a flimsy plastic bag instead.

Water

Traveling the world will take you to areas where tap water isn’t safe to drink. Carry a water purifier like a LifeStraw to avoid spending your limited budget on bottled water.

Limit Alcohol Consumption

If you like to drink, it can be challenging to travel on a tight budget. Reduce costs by going to local establishments and having what the locals are drinking. Avoid pricey beverages that are imported from other parts of the world.

Budget Travel Means Being Flexible

If you’re traveling on a budget, I can’t stress this enough: Don’t make plans too far in advance!

For longer trips or worldwide travels, resist crafting overly detailed and inflexible itineraries. 

Traveling spontaneously helps you avoid cancellation fees if you decide to stay somewhere for more or less time than you originally thought. This could happen for many reasons: you fall in love with a city and never want to leave, get unlucky with the weather and need more time to explore, or get sick and need to stay in one place to recover.

Traveling flexibly means you’ll also get good last-minute deals on things like bus tickets and tours.

That being said, there are a few times you’ll need to plan ahead to avoid expensive last-minute surprises. First, plan ahead for very popular destinations (e.g. Machu Picchu or Torres del Paine). These places are highly visited by tourists from all over the world and reservations fill up months in advance. Second, booking flights further in advance will allow you to find the most budget-friendly options.

Travel for Cheap by Saving on Transportation

Transportation and especially airfare will likely eat up a large portion of your limited budget, so pay close attention to ways you can reduce your spending in this category.

Budget Travel Tip: Travel Slowly

Traveling slowly reduces your average daily transportation expenses. It also means you can travel cheaply by taking affordable buses instead of expensive flights.

Take Ground Transportation

In most parts of the world, traveling by bus or train for short to medium distances is cheaper than flying.

Save on Bus Tickets

In many budget-friendly destinations, purchasing bus tickets on the day of your trip at the station is the cheapest way to travel. At the station you may find unlisted and negotiable prices that are not available online. Just do your research beforehand, because not every destination will have negotiable bus ticket prices. Too many times I’ve made the mistake of offending local vendors in places where ticket prices were strictly non-negotiable!

If you have a tight itinerary or are not comfortable conversing with vendors in the local language, search for the most affordable bus ticket online. I recommend BusBud, which you can use to search for bus travel worldwide.

Take Night Buses

Night buses are a rite of passage when traveling the world! They are great for budget travelers because you’ll skip paying for one night of accommodation, and you can cover long distances while you sleep. I’ve taken them many times as a solo female traveler and have always felt comfortable and safe.

Take Shared Shuttles

Shared shuttles (such as collectivos in South America) can often reach the same destinations as taxis but at a significantly lower cost.

Share Taxi Fares

If you need to take a taxi, try to split the fare with fellow travelers heading in the same direction. This is quite easy to do if you’re staying at a hostel. Verify the typical taxi rate with your accommodation to make sure you aren’t overpaying.

Use Rideshare Apps

Rideshare apps such as Uber are usually cheaper (and sometimes safer) than taxis.

Walk

Walk as much as possible, when it is safe to do so. Walking is great for budget travel and also for your health!

Hitchhike

Hitchhiking is common amongst budget travelers, and I’ve done it myself as a solo female. But first, confirm that hitchhiking is safe in the part of the world you’re traveling to. It’s a very common mode of transportation in Argentina, for example. It’s polite to offer some gas money, but most of the time the driver just wants some conversation.

Budget Travel: Fly for Cheap

If you must fly, don’t overpay for your airfare. Being a little flexible and creative will allow you to find excellent travel deals. Here are some ways you can search for budget-friendly flights around the world:

Search in incognito mode and have flexible travel dates to find the lowest budget options. Packing only a carry-on only will prevent costly luggage fees and help you travel cheaply. I’ve written about how to pack light if you need help with that!

If flights out of your preferred airport are expensive, explore nearby airports. A bus ride to a different airport may open up much cheaper travel options. If you’re near the border, consider flights departing from the neighboring country.

Also evaluate multi-city itineraries, which can be more affordable if you’re willing to stay a night or two in an intermediary city. Check for common layover destinations on your route and then search for multi-city itineraries that include those layover destinations. I personally love this option, which lets me travel cheaply with the bonus of exploring a new city!

Budget Travel Tip: Find Free or Cheap Travel Activities

Seek off the beaten path adventures. Find unique, non-touristy attractions that don’t have entrance fees. Ask locals or other budget travelers for their recommendations.

Free walking tours are offered in most major cities all over the world. Just please remember to tip your guide!

Hostel social activities. As a budget traveler you’ll probably be staying in a hostel, so choose one that offers free activities such as walking tours, movie nights, yoga classes, and dance lessons.

Local museums and other attractions often have free entrance once per week.

Shop around for tours. When purchasing tours, shop around and compare prices both in person and online to find the cheapest deal. For browsing online, my recommended platforms are Get Your Guide and Viator.

DIY tours. Some organized tours can be planned independently on a lower budget. If you’re planning to DIY an activity like a multi-day trek, just make sure you have sufficient experience.

Plan ahead for big ticket items. When traveling the world, you’ll come across many destinations that offer similar adventure activities (scuba diving, ziplining, etc.). Accept that you can’t do everything in every city if you want to stick to a tight budget. Plan ahead and select the best location to partake in these activities just once.

Spend time outdoors. Many activities such as hiking and camping are free.

Student cards. Your student card can sometimes get you discounts or even free entrance to many attractions around the world.

Shopping centers. Head to shopping centers for a break on a hot day. Shopping centers usually have good AC and clean, free restrooms.

Sunrises and sunsets. This might be my favorite budget travel activity! Enjoying the sun rising or setting is a breathtaking and free way to begin or conclude your day. Major cities typically have a few top viewing spots; ask a local for their recommendation.

Thanks for reading, and I hope this information brings you closer to traveling the world on a budget. Did any of these budget travel tips surprise you? Am I missing anything? Let me know your thoughts in the comments, I’d love to hear from you.

Head to my Travel Tips Page for more tips that will help you prepare and budget for your travels.

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