A few years ago I made the now-not-so-crazy decision to take a gap year and travel the world for 12 long, amazing months.
I had worked hard to save up the money, even doing some really awful mundane jobs but even doing this for months I didn’t quite manage to save as much as I would’ve liked, so travelling on a tight budget was something I had to get good at pretty quick.
When I arrived back in London after the trip, I had done the unthinkable; I had come back with money in my bank account!
“How on earth did you manage that?” I hear you ask.
Here are my top budgeting tips for big trips.
1. Buy Flights and Accommodation Early
Generally the earlier you book fights the cheaper the prices are. You can also sometimes get some really amazing last minute deals but sometimes it can be risky leaving it so late. View my guide how to get cheap flights for more tips.
As with flights, booking accommodation early will generally get you the best rates. The closer the time to your arrival, the less rooms are likely to be available and so the prices will be higher. If you are travelling solo staying in hostel dorm rooms is much cheaper than paying for a private hotel room, it is also a social way to meet others. Although it does have its downsides too.
2. Choose Destinations Carefully
Depending on where you go, your money can really go a long way. Expensive destinations like Western Europe, North America, the Middle East and the Pacific can quickly eat up your money. But if you choose to travel to places like Asia and Latin America, you can travel for months longer as your money goes much further.
Prices for accommodation, sightseeing and transport in countries like India, Sri Lanka, Vietnam, Bolivia, Colombia and Guatemala are much cheaper than for example the USA, Canada, Australia, Dubai and France.
If you really want to visit more expensive countries, you could limited you time and even it out with more time in cheaper destinations to counter balance.
3. Set Realistic Expectations
Before I left I spent hours Googling ‘How much money will I need for 8 months travelling around Asia and South America?’ The more forums I read, the more confused/worried I became.
Try not to stress about how little you have/how much everyone else has and work with what you’ve got. Saying that, you need to be realistic; you cannot get by on £250 a month in Australia without working.
If you’re short on dollar, stick to cheaper countries and avoid the more expensive ones, or consider going for a shorter period of time.
4. Travel Off-Season
During off-peak times you’ll get a much better deal on air fares and hotels.
Some periods to avoid can include the UK school holidays, European summer and also flying anywhere in December can be expensive with people wanting to fly home or abroad for the holiday season.
Don’t be put off travelling in the ‘rainy’ season either. The downpours are short and sharp – just dart into the nearest bar/café and grab a drink while the storm passes. Often countries are lush and green during the rainy season and the scenery can be quite spectacular. View my article about why you should visi south East Asia in the rainy season.
5. ISIC Card
If you’re a student, I would definitely recommend getting an ISIC card before you go. They’re cheap and can help you can make savings on a whole bunch of things from bus passes to entrance to museums, and when you’re travelling, every little bit helps!
6. Fly Open-Jaw
That’s flying into one city/country then out of another. Flying open-jaw can you save both time and money on a big trip as you avoid having to make a needless return to your starting point. You can also get some great flight deals flying into less popular cities and travelling on from there.
7. Bank Cards & Money
So many people get stung by excessive withdrawal fees when they’re travelling. I met a couple who had lost £700 over 9 months just in bank fees! It’s worth doing your research on different bank accounts and credit cards.
I opened a new account that had no overseas withdrawal fees. This meant that I never had to carry around large amounts of cash and I could withdraw money as and when I needed it, which I found made me spend less.
8. Buddy Up
Buddying up when you’re travelling is a great way to save money. Ask your new travel mates if any of them fancy sharing a taxi to the airport, or getting a few pizzas between you for lunch.
Don’t be embarrassed to broach the issue with your fellow travellers; you’re all in the same boat and they’ll probably be grateful that you asked. Just make sure you don’t get lumbered with the “guy with the guitar”, no money is worth these grimaces
9. Watch The Booze Intake
Okay, so I know a lot of you won’t want to hear this (I know I didn’t) but watching how much alcohol you consume can save you some serious moolah. By all means enjoy yourself but just make sure you keep an eye on your bank balance.
I met a guy who was supposed to be travelling for a year but he had blown his entire budget in 3 months on partying and was having to fly home earlier than planned. It may sound extreme but it is a lot more common than you might think.
10. Avoid The Main Tourist Drags
Accommodation and restaurants are usually quite a bit cheaper if you avoid the main tourist hotspots. Khao San Road in Bangkok is a classic example of this. Stay a 15 minute walk away and you’ll pay significantly less, still be close to all the action and you won’t have to put up with the loud music vibrating through your dorm room until 7am.
11. Cook Up A Storm
Eating out in some countries is more expensive than in the UK and can come as a bit of a shock – especially in Australia where the average price of a meal out for two is around £40.
Skip the bistro, pop to the local supermarket and whip yourself up a delicious dinner in the hostel kitchen. It’s a great way to expand your culinary repertoire, plus a hostel kitchen is the perfect place to hang out and meet new people.
It also means saving your pennies for cheaper destinations where you should always.
12. Eat Local
If you are eating out, local food is always cheaper and, to be honest, just much better! You can pay over-inflated prices for burgers and pizzas when you’re back, so get adventurous and try some of the local dishes. My personal favourites? Pad thai in Bangkok, dosa in Taiwan, arepas in Salento, Colombia, choripan in Buenos Aires…. I could go on!
13. Bus Or Train It
As tempting as it is to get internal flights everywhere, getting the bus or train is significantly cheaper, and despite some of the horror stories you may have heard, 99% of the time totally fine.
Every traveller has a funny bus story to tell (mine involves a Cambodian Karaoke bus which quite frankly scarred me for life), it’s all part of the adventure. Bus and rail passes can offer big savings too and are definitely worth checking out.
If you do have to take an internal flight, try and book as early as possible to get the cheapest fares.
14. Drive A Hard Bargain
Always negotiate – whether it’s the price of a taxi to the airport or a knock-off handbag at a Bangkok market, there’s always room for negotiation. It’s common practise in many Asian, African and South American countries to bargain over the price of pretty much everything – always go in low and always be polite. But ultimately remember that people still have to make a living, pay what you think is reasonable, and don’t forget, a smile goes a long way!
15. Track Expenses
Okay, I’m a massive geek. I admit it. I kept an expenses spreadsheet when I was travelling, tracking every penny I spent.
Now, I totally understand keeping a spreadsheet is not everyone’s cup of tea and some of you may think I’m a total nut job (although anyone who loves to channel their inner geek or is interested in how much I spent in each country can download my spreadsheet here).
For those that shudder at the thought of it, there are plenty of other great ways you can keep your spending habits in check whilst travelling.
16. Find Free & Cheap Things to Do
There are so many free and affordable sightseeing related activities to do in destinations all around the world. Check online, or on-arrival and you are guaranteed to find fun things. From free walking tours, to just exploring independently, to shows and courses. Sites like Inspire Your Trip have lots of suggestions for activities.
Did you learn any valuable tips whilst you were away? Let me know your top budgeting tips in the comments box below!
