Backpacking on a Budget? Don’t Make These 5 Mistakes
Introduction
Budgeting while travelling can feel overwhelming especially if you’re just starting out. On my first backpacking trip I blew through my budget way faster than I had anticipated because I didn’t know any better. If I avoided these five mistakes I would have saved so much money (and stress) This post is made for budget travelers, backpackers and solo adventurers who want to make their money last while travelling without missing out on the experience.
Mistake #1: Not Tracking Your Spending
It is hard to see the little things adding up when we just glimpse at our bank statement. A few dollars every day here and there doesn’t seem like much. But, daily coffees, extra fees and small random purchases are killing your budget. I’m not saying you can’t have little purchases here and there but, you need to track EVERYTHING.
Keeping track will help you see where your money is actually going. I’ve used the app TravelSpend the past few years and it is incredible. It breaks down your spending into categories, so if you’re getting off-track you can easily see what is causing that. They have a paid and free version of the app. The paid has more features but I’ve used the free version so far and it’s been perfect!
Mistake #2: Not Understanding the Currency
I am extremely guilty of this but it is a huge reason I’ve overspent in the past. You need to be checking what things cost in YOUR currency! I am Canadian so if I’m in Europe/UK 25 euros or pounds sounds quite cheap but it’s actually $50 CAD. And the hardest for me is countries where the currency is totally different, for example in Indonesia where $1 CAD is currently 12182.81 Rupiah. There is no way I’m going to be able to remember that and do the math in my head.
I use the basic calculator app on my iPhone to do all my currency conversions. It’s relatively new feature (since September 2024) that you can use the calculator for conversions and it’s made my life so much easier while travelling. This way I know exactly what I’m spending, not a rough estimate. It helps keep my spending in perspective when I use my currency.
Mistake #3: Booking Everything in Advance
Over-planning may seem like a good idea, it definitely did to me when I was a new backpacker. However, it will lock you into plans that you may want to change but can’t cancel without losing money. It’s also good to check local prices to the prices you see online to compare where you are getting the best deals. In person also allows for negotiation of price and you may score a discount you wouldn’t have been able to beforehand. This goes for tours as well as transportation.
I recommend booking your first few nights and plan from there. I also take advantage of hostels/hotels that offer free cancellation to keep my plans open while still having a loose idea of where I want to go (always be aware of your timeline of when you can cancel up to). Having a rough itinerary will keep you flexible and open. You can also check out my other blog post all about how to plan while solo travelling.
Mistake #4: Always Going for the Cheapest Option
I know it’s tempting. I stayed at a $2 a night hostel in Thailand and regretted every minute of that decision. The cheapest options usually come with a lot more cons than the pro of saving a few bucks. Staying in a bad hostel or unsafe neighbourhood is seriously not worth the stress and cost to your safety. And taking a 20 hour bus ride because it’s $10 cheaper than a 6 hour train ride is not worth it. Please, balance cost with your comfort and safety. I mean you can do it once if you want to ‘do it for the plot’. But, I’ll be here waiting to say I told you so.
Mistake #5: Skipping Travel Insurance
Non-negotiable in my opinion. I have heard too many horror stories to ever risk going without travel insurance. Luckily, I’ve been safe & healthy on all of my trips and haven’t had to make a claim. I’ve used both World Nomads (Upfront Cost, price dependent on location, length of trip, etc) and Safety Wing Nomad Insurance (monthly payment, good for digital nomads). I know it seems like a waste or too much money but it can save you thousands down the line if you need to use it and make a claim! Don’t skip out on this.
Conclusion
Remember that backpacking on a budget doesn’t mean missing out, it just means being a little more intentional with your choices. I’ve learned all of these lessons the hard way, and I promise they’re easy to avoid once you know what to look out for. With a bit of planning (and a lot of flexibility), you can stretch your budget, stay safe, and enjoy your trip so much more. Backpack smart, not stressed—and remember, it’s all part of the experience.
