How to Travel on a Budget: 7 Proven Ways

Introduction — How to Travel on a Budget Without Losing Comfort

Our travel style has evolved a lot over the years. When we first started, we used to plan every single detail of a trip in advance — flights, hotels, activities, everything. But as we traveled more, our adventures got longer, our itineraries got looser, and our mindset completely changed.

Now, we rarely plan ahead. We see where each day takes us — and at the same time, we’ve become much more conscious of how to travel on a budget.

One of the biggest lessons we’ve learned is that the same trip can either cost a few hundred euros or a few thousand — it all depends on the choices you make along the way. Traveling for cheap doesn’t have to mean sleeping in sketchy hostels or skipping all comfort; it’s about being smart, flexible, and intentional with your money.

To give you an idea, we spent 24 days across Peru, Bolivia, and Chile for €7,320 total, and later 3 months (91 days) in Brazil, Uruguay, Argentina, and Chile for €9,000 total. That’s €305/day vs. €98/day — a huge difference for trips that were just as memorable.

So, let’s dive into how to budget for a trip, save money, and still travel comfortably. Here’s how you can travel for cheap without missing out on the experience.

How to Travel on a Budget

Transportation — Be Smart About How You Move

Transportation is one of the biggest expenses when traveling, but it’s also where you can save the most money if you’re strategic. Whether it’s by plane, train, bus, or van, the key to traveling on a budget is comparing all your options — and being flexible with your time.

In many countries, flights and trains can be expensive, while long-distance buses are often much cheaper. Sometimes up to 10 times less for the same route! The trade-off, of course, is time — buses can take longer, but if you plan smartly, you can turn that into an advantage.

One of our favorite ways to travel for cheap is by taking night buses. They save both time and money — you move from one destination to another while sleeping, and you don’t have to pay for a night in accommodation. This trick saved us hundreds of euros in South America and helped us budget travel for months.

In Europe, long-distance buses like FlixBus or BlaBlaBus can get you almost anywhere for a fraction of the price of a train or plane. They are a good solution to Travel on a Budget. For instance, in France, a Strasbourg–Paris train ticket can cost around €75 (TGV), but you can find OuiGo or bus tickets for as low as €19.

In Argentina, we mostly traveled by bus, except for one flight from Bariloche to El Chaltén — a 24-hour bus ride versus a 2-hour flight that, after waiting a few days, cost almost the same. Flexibility is everything when you’re trying to travel on a budget.

To give you an idea of the difference it makes:

• In one trip, we spent €3,720 in 24 days (about €155/day).
• On another, we spent €4,040 over 91 days (just €44/day).
• And that’s including a €1,200 refund from Air France due to a delay!

In short — don’t rush. Compare, stay flexible, and remember: sometimes the cheapest way to travel is simply to slow down.

Accommodation — Sleep Smart to Save Big

Accommodation is usually the second biggest expense after transportation, and it’s where your travel budget can quickly vanish if you’re not careful. In our early trips, we stayed mostly in hotels — comfortable, yes, but the costs added up fast.

Over time, we switched to Airbnbs, guesthouses, and family stays, and it completely changed both our budget and our travel experience. These options are not only cheaper but also far more authentic. Staying with locals or in smaller guesthouses gives you a deeper connection to the culture — and often leads to great conversations, homemade meals, and local tips you’d never get in a hotel.

Nowadays, we find that depending on the country, either Airbnb or Booking often offers the best balance between price and comfort, especially for longer stays. You can rent entire apartments, small studios, or shared rooms, depending on your travel style.

Budget tip: Find the hotel or guesthouse you like on Booking or Google Maps, then contact them directly. Many will give you a lower price if you book off-platform since they avoid paying commission fees. You might have to share your payment details by email or phone, but it’s a common and safe practice with verified properties.

To give you an idea of the savings:

• We spent €1,525 in 24 days (around €63/day).
• Later, we spent €3,261 over 91 days (about €36/day) — and that includes €595 for 4 nights in Torres del Paine National Park, one of the priciest places we’ve ever stayed. Without that, the average was closer to €31/day.

And if you really want to travel on a budget, go camping! Many destinations, especially in South America or Europe, offer beautiful campsites for just a few euros a night — and the experience can be amazing.

Food — Eat Smart and Save While Traveling

Food is another major expense when you’re trying to travel on a budget, and it’s one of the easiest areas to cut costs without sacrificing enjoyment. On our earlier trips, we ate out almost every day — restaurants, cafés, or street food — and while it was fun at first, it quickly became expensive. Not to mention, we spent more time arguing about where to eat than actually enjoying our meals.

These days, we’ve changed our approach completely. We now cook most of our meals, and that’s one of the main reasons we prefer staying in guesthouses or apartments — they usually have a kitchen. It gives us the freedom to prepare simple, healthy meals whenever we want, while also saving a lot of money.

Of course, that doesn’t mean we skip local food entirely. We still try regional specialties, but just not every meal. As we’ve shifted to a plant-based diet, we focus more on experiencing the culture, meeting people, and exploring nature — the food is just one small part of the adventure.

Another sneaky expense is alcohol. In our 91-day trip, we spent around €300 just on drinks — enough to cover a week of accommodation! Cutting down on beer and cocktails (even just occasionally) can make a huge difference in your travel budget.

To give you an idea of how much food choices can affect costs:

• We spent €613 in 24 days (around €25/day).
• Later, we spent €1,200 over 91 days (around €13/day) — that’s nearly half the daily food cost simply by cooking more and being mindful of what we bought.

If you want to travel for cheap, buy groceries at local markets, cook your own meals, and treat restaurants as an occasional experience, not a daily habit. Your wallet — and probably your stomach — will thank you.

Activities — Do It Yourself and Save Big

When it comes to how to travel on a budget, activities are one of the easiest areas to overspend — but also one of the easiest to save on. Tours and organized excursions can be fun, but they often cost several times more than doing the exact same thing on your own.

These days, most attractions are easy to visit self-guided. You can read a few travel blogs, check the official website, or download a map or app before you go — and that’s all you really need. Whether it’s hiking, exploring historical sites, or visiting small towns, you’ll often get a richer and more personal experience when you do it at your own pace.

Of course, there are some exceptions. For example, certain treks or national parks (like Torres del Paine in Chile or Machu Picchu in Peru) require guides, entrance tickets, or logistics that make booking a tour worthwhile. But in most cases, walking, biking, or taking public transport will let you enjoy the same sights for a fraction of the cost.

Here’s what that looked like for us:

• We spent €714 in 24 days (about €30/day).
• On another trip, we spent just €700 over 91 days (about €8/day) — and still saw incredible things.

That’s a huge difference, and it proves you don’t need to spend a fortune to have memorable experiences. When you travel for cheap, focus less on paid attractions and more on exploring freely — nature, culture, and local life are often the best parts of any trip, and they’re completely free.

Souvenirs — Buy Less, Choose Better

Souvenirs are one of those hidden expenses that can quietly blow your travel budget. It’s so easy to get caught up in the excitement and end up spending far more than expected on things you don’t really need — especially in touristy areas where prices are inflated.

A great way to travel on a budget is to buy fewer souvenirs but make them more meaningful. Instead of grabbing random trinkets or mass-produced magnets, take your time to find something unique and handmade — something that truly represents the place and your memories there.

We’ve also started being more intentional about what we bring back. These days, we prefer small, special items — maybe a local craft, a handwoven fabric, or a small piece of art. Not only does it save money, but it also keeps our home from filling up with clutter.

And if you take the time to shop where locals shop, you’ll find that authentic souvenirs are often much cheaper than the ones sold in tourist hotspots.

Here’s what we spent:

• €632 in 24 days (about €26/day) when we were still buying souvenirs regularly.
• €356 over 91 days (about €4/day) after we started being more selective.

That’s a massive difference — and we didn’t miss a thing. The memories are what matter most, and they don’t take up any space in your backpack.

Exchange Fees — The Hidden Cost of Traveling

Exchange fees are one of those sneaky expenses that can quietly eat into your budget without you even noticing. When you’re trying to travel for cheap, those small percentage fees on every withdrawal or payment quickly add up.

During our 91 days in South America, we spent about 2% of our total €9,000 budget just on exchange fees — that’s around €180 lost to bank and conversion charges. And that was us managing it well. In Argentina, where the currency situation is tricky, it could easily have been 5% or more if we hadn’t looked for better options.

Back then, we used Azimo, a transfer service that saved us quite a bit on international fees — though unfortunately, it doesn’t exist anymore. Today, we’ve switched entirely to Wise (formerly TransferWise), and it’s been a game-changer for budget travel.

Wise allows you to:

• Hold multiple currencies in one account (great for long trips).
• Withdraw or transfer money with minimal fees and real mid-market exchange rates.
• Pay directly with their debit card, avoiding crazy international transaction fees.

It’s simple, fast, and transparent — no hidden markups or nasty surprises when you check your bank statement later.

When traveling long-term, having the right financial tools can make a big difference. Wise helps you budget better, save on fees, and access your money anywhere in the world without stress.

Other Travel Costs — The Small Things That Add Up

When learning how to travel on a budget, it’s easy to focus on the big expenses like flights and hotels — but the small, everyday costs can quietly make a huge difference too. Things like insurance, SIM cards, or even public restrooms can add up over weeks or months of travel.

Here’s a breakdown of some of those “hidden” travel costs to keep in mind — and how to manage them smartly:

• Travel Insurance: It might feel like an unnecessary expense until you need it — and trust us, it’s worth every cent. Accidents, flight delays, or lost luggage can happen anywhere. We personally use World Nomads, as it covers adventure activities and long-term travel. You can also compare other options like SafetyWing or Heymondo to find what best fits your trip length and travel style.

• SIM Cards & Internet: Staying connected is crucial, especially if you work while traveling. Buying a local SIM card at the airport or a nearby store is often much cheaper than using roaming from your home provider. Alternatively, you can use eSIM services like Airalo or Holafly, which let you download a local data plan before you even land — perfect for seamless travel.

• Visa Fees & Entry Requirements: Depending on your nationality and destination, visas can quickly eat into your travel budget. Always check requirements before your trip. Some countries offer visa-free entry or cheap e-visas, while others charge $50 or more.

• Public Toilets & Tips: In some countries, you might pay to use public restrooms or be expected to tip for basic services. These are small amounts but can add up if you’re traveling for months.

• Laundry: Don’t overlook this one! Doing laundry in hotels is often expensive. Find local laundromats or use self-service machines — they’re cheaper and usually available in big cities.

Tip: Travel on a Budget isn’t about cutting every expense — it’s about being smart with your money. Knowing where small costs hide (and how to reduce them) gives you more freedom to spend on experiences that truly matter.