Daily costs: How much money do I need?
So how much money do backpackers need to budget for on a day to day basis on a round the world backpacking trip or gap year?
You may be surprised how little you can spend when backpacking the world, but here's a basic guide to budgeting so you know what to expect to spend each day when backpacking.
|Region||Approx. daily spending amount|
|US Dollars||Euros||UK Pounds|
|Australia / New Zealand||$30-50||€20-35||£15-25|
|South East Asia||$10-30||€7-20||£5-15|
How much money should I save for my backpacking trip?
Teaming up with another backpacker can save lots of money on hostels.
As an approximate guide, I generally allow about $2,000 (£1,000 / €1,500) a month when backpacking around the world. Cities tend to be the most expensive places to stay so allow more if you are spending more than a few days in major cities.
Pre-order your foreign currency online with Travelex to save money (post or pick up at airport).
No matter how cheap you think you are travelling you will always meet another backpacker who is staying in a cheaper, better hostel, eating in a cheaper, better restaurant and catching the cheapest, quickest transport. Our advice? Follow them!
Tips on how to spend less money each day
If you are backpacking around Europe, get a EuroRail or InterRail train pass as this is a cheap and efficient way of getting around. You can also book sleeper berths overnight to save money on a night in a hostel.
If you are travelling with a few friends it can also be good value to hire a car and split the costs.
Hostels are the cheapest accommodation and some are surprisingly comfortable these days. If you know you are going to spend a few nights in the same place, ask if you can get a cheaper deal and offer to pay in advance for the whole stay if that makes it cheaper still. Check hostel or hotel prices.
Most backpacking hostels have a kitchen so you can buy cheap food in the local market or supermarket and cook yourself. You'll probably share the cost between a few other backpackers and make a larger, cheaper meal.
Order foreign currency in advance to save money
Exchange rates at airports and processing fees for foreign ATMs can be too high for most travellers, so avoid these by ordering your foreign money online through Travelex.