Traveling the world doesn’t have to break the bank. After spending six months backpacking across Asia, Europe, and South America, I discovered firsthand how to make global adventures affordable without sacrificing experience. Whether you’re planning a gap year, a remote work stint, or simply chasing a lifelong dream, here are my best tips for how to travel the world on a budget—learned through trial, error, and a lot of street food.

1. Plan Less, Be Flexible More

One of the biggest mistakes new travelers make is overplanning. Booking every hotel and flight months in advance can be costly and limits your flexibility. Budget travel thrives on spontaneity.

Instead, book your first few nights in a city, then explore options on the go. Use apps like Skyscanner, Rome2Rio, or Omio to find cheap transport routes and compare accommodation. Being flexible with dates and destinations often opens the door to better deals.

2. Choose Budget-Friendly Destinations

Your dollar (or euro) stretches much further in some parts of the world. Countries like Vietnam, Georgia, Mexico, and Portugal offer incredible experiences for a fraction of what you’d spend in places like Japan or Switzerland.

In Southeast Asia, I often lived comfortably on $25–$30/day—including food, lodging, and activities. If you’re looking for specific country guides and recommendations, check out the travel stories on our blog at Planet Earth Holidays, where we cover destination tips, travel hacks, and more.

3. Use Work Exchanges and Volunteering

One of the best ways to save money while traveling long-term is through work exchange programs like Workaway, WWOOF, or Worldpackers. In exchange for a few hours of work per day (often in hostels, farms, or NGOs), you get free accommodation and meals.

I spent two weeks working at a hostel in Medellín, Colombia—met amazing people, improved my Spanish, and barely touched my wallet. It’s not just about saving money; it’s also a deeper cultural immersion.

4. Eat Local, Skip Tourist Traps

Street food and local markets are your best friends. Not only is the food cheap, but it’s also authentic and delicious. In Thailand, I ate full meals for $2. In Turkey, fresh bread, olives, and cheeses from markets made perfect budget breakfasts.

Avoid restaurants near major tourist sites—they usually charge 2–3 times more. Ask locals or check Google reviews for genuine recommendations.

5. Travel Slow

Fast travel = fast spending. Flights, frequent taxis, and rushed itineraries add up. Instead, slow down. Spend more days in each place. This reduces transport costs and often gets you discounts on longer stays at hostels or Airbnbs.

Plus, slower travel means deeper experiences, stronger local connections, and less burnout.

6. Pack Smart and Light

Overpacking leads to extra baggage fees and unnecessary stress. A 40-liter backpack was all I used for six months. Stick to essentials: a few mix-and-match outfits, a lightweight rain jacket, travel-size toiletries, and a universal adapter.

Investing in a good quality backpack and comfortable shoes will save you pain (and money) down the road.

7. Travel Insurance Is a Must

It might seem like an unnecessary expense, but skipping insurance is risky. A single emergency room visit abroad can cost hundreds or even thousands. Look into affordable plans through providers like SafetyWing or World Nomads—they’re tailored for long-term travelers and digital nomads.

Final Thoughts

Backpacking the world on a budget is completely doable with the right mindset and strategies. It’s about being resourceful, open to adventure, and willing to trade comfort for experience. Remember, the best moments often happen outside of guidebooks and itineraries.

For more travel inspiration, real backpacking stories, and budget travel tips, visit our Planet Earth Holidays Blog.

Safe travels, and may your wallet stay full and your passport full of stamps!