Budgeting 101

This section is one that can go on for pages, and it does in my book. However, for the sake of keeping your time and interests in consideration, I am going to do my best at condensing this section greatly. Please bear with me here while I explain how to budget.

I would say that the major three factors in budgeting are: 1.) Accommodation 2.) Food 3.) Your Transportation method. Arguably, the rest takes care of itself. In this article, I will teach you how to budget for these three.

In my experience of everything that I have read or experienced first hand, the best figure to keep in mind is $40-60 per day. If you take out your accommodation, this number can drop to nearly $0-20.

Accommodation

Are you aware that accommodation is likely to be the most costly expense on your trip? Seriously, let us say that you average $15 a night for a bed and travel for 3 months. That is roughly $1300. That is almost more than an average plane flight.

Your best options:

To stay for free – Stay with friends, family, camp, or work in a hostel. If you do not have friends or family abroad, then you can use website services such as Couch Surfing.

To pay for a night – By far the cheapest places that you are going to pay for are hostels. They are far cheaper than hotels and frankly offer much more. For more information on hostels, click here.

Food

Food is probably the cost that will be in between the cost of accommodation and transportation. The cost of your food depends entirely on your spending habits and eating habits. You can comfortably eat 3-6 meals a day on a reasonable budget, but you could also do the same for a large sum of money.

Your best options:

To eat free – They always say that there is no such thing as a free lunch. In most cases that is true and traveling is no exception. You would be surprised at how many near free or really cheap meals that you can get at hostels though. People often over cook and are willing to share. The next day you can cook for them. It is a trade-off really.

To pay – Street food to me is your best option when eating out. If you are on a budget, stay as far away from restaurants and touristy food as you can. Your street vendors will offer better food and a more local feel, for a fraction of the cost. If you are stationary in one city for a while, strongly consider buying groceries and cooking at home or in your hostel. You can save a fortune. For example, a bottle of water on the street can cost 200-400% more than one purchased in bulk at the grocery store. Remember, they are selling a convenience. Those little costs add up on a long trip.

Transportation

Transportation is the obvious key to getting around. Going it first class can and will cost a pretty penny, but there are options for doing it cheaply.

Your best options:

To travel free – Hitchhiking, walking, and riding a bicycle are the most common and popular ways of traveling for free. You would be surprised at how many people have actually done these. If you are interested in any of these, please check the guides in travel articles.

To pay – If you are not into walking or cycling and not quite up for hitchhiking yet. Keep in mind, there are still ways to travel cheaply. The most common ways of traveling are buses, trains, vehicle rentals, and flights. In my experience the cheapest method is typically the bus system. Now, I am not talking about large tourist buses. I am speaking about the kind that locals use. An occasional, flight or train may be in order, but also keep your mind open to carpooling. It is like hitchhiking, but more organized. Carpooling is quite common in many areas of the world, and is especially popular in Europe and America.

Conclusion

Rest assured, this is an extremely watered down version of my budgeting tips. For more budgeting information, please read my other articles on budgeting or contact me personally.

Ready for the next step in budgeting? Check out Budgeting 102.

Looking for hostels? Check out my how to guide for hostels.

Fund your travels by working in a hostel. Click here for my 4-Step How to guide to finding a hostel job.