No matter the budget, every backpacker is looking for ways to save money. With extra cash, you can prolong your tip, splurge on bigger experiences and explore more of the world. Based on our experiences, here are 10 ways to save money as a solo backpacker.
1. Stay in hostels
Hostels are a solo backpacker’s bread and butter. A dorm bed in a hostel is typically less expensive than even the most basic hotel room in the same city. Often times, a solo room in a hostel is also cheaper than the hotel alternative. On top of the money-saving advantages, hostels also offer a variety of amenities aimed towards backpackers.
In hostels you will often find the best available knowledge of tourist activities in the city, complimentary breakfast (and sometimes beer), exclusive group rates on excursions and lots of like-minded travelers looking to share an adventure.
2. Avoid exchanging currency at the airport
When you enter a new country, you will probably need to acquire some of its currency. Do this before you enter said country. Airports offer some of the worst exchange rates available, so you don’t want to need cash just after landing. On the other end of the spectrum, banks usually offer the best exchange rates. Visit a bank before you head to the airport and exchange enough cash to get to your accommodation once you arrive.
Tip: If you do end up at the airport with no local currency, exchange just enough money to get to your accommodation. Once you are settled, visit a bank or an ATM to exchange the rest of your cash at a more favorable rate.
3. Meet people
This is something you should absolutely do, even if money no concern. One of the best things about solo travel is getting to meet people from all over the world.
With that being said, meeting other travelers can be a great way to save money. Depending on where you are in the world and how many people are in your group, booking a hotel or an Airbnb could be less expensive than reserving individual bunks in a hostel dorm. When we traveled in Vietnam, a hotel room with 2 double beds was typically ~$15 USD, while 2 beds in a hostel dorm room averaged $10 USD each.
Many times, experiences aimed towards tourists will offer group discounts as well. Team up with a like minded group of travelers to bring down the cost for each of you.
4. Eat local food
Eating local food is a great way to save money, simply because the alternative usually comes with a hefty markup. In Thailand a plate of Pad Thai can cost anywhere from $1-3 USD, while a plate of spaghetti could be anywhere from $5-10 USD. Keep in mind, if a restaurant is geared towards tourists, it wont matter what you eat. Everything will be marked up, regardless of what you order.
To save money of food, seek out restaurants and street markets popular among locals. Here you will not only find the best prices, but also the best, most authentic food.
5. Invest in a good combination lock before you go
This small expense could save you a lot of money down the road. There is no larger cost than replacing your entire backpack and everything inside it. Hostels usually provide individual lockers in which to store your belongings, but a lock is rarely included. Regardless, it’s best to bring your own lock to make sure your things are as secure as possible.
For valuable items like phones, cameras, passports, etc., we recommend bringing a day pack that never leaves your possession. Unfortunately, theft is something that occurs occasionally in hostels, so take precautions to protect your valuables.
Tip: We recommend a combination lock vs. a keyed alternative. The last thing you want to do is lose your key mid-excursion and have no way of retrieving your valuables from the locker. A combination lock is much safer for this reason.
6. Take public transportation
Public transportation is a great way to travel as a backpacker. Luckily, it also happens to be a great way to save money. Most large cities will have a local public transportation network that is cheap and relatively easy to use once you get your bearings. In many instances, there will also be public buses between cities. Keep in mind, these are not necessarily the buses that your hostel advertises at the front desk. The buses at the front desk will usually be private companies that come with a considerable markup to the buses you may find at the local bus terminal. However, if you have a long journey ahead of you, the increase in comfort that a couple dollars can buy is often worth it.
Regardless, a trip to the local bus or train station is usually a good idea to make sure you are getting a fair price for the trip you are taking.
7. Utilize free breakfast hostels
As we mentioned earlier, free breakfast is included with a stay at many hostels. The quality of said breakfast can vary greatly, but free is free. At the very least, you can expect complimentary coffee or tee with toast or pancakes at hostels that advertise free breakfast. A fried egg is also commonly included, but anything beyond that should be viewed as a bonus.
Regardless of the quality, a free breakfast is never a bad thing. As a backpacker looking to save money, free breakfast is a great place to start when vetting hostels.
8. Haggle when you buy
In many areas of the world, it is expected that you haggle or negotiate the cost of goods you purchase. Use your judgement here, as it may not be acceptable in all circumstances.
Where haggling is expected, it is a useful skill to master. What better way to save money than by not overpaying for everything you purchase? During our trip, we had many vendors offer an initial price well over 10x what we actually ended up paying. If you come from a country where haggling is not common practice, this may take some getting used to. We were uneasy at first, but actually ended up enjoying ourselves in haggling situations by the end of our trip.
9. Shop around
Similar to bartering, you should not buy from the first place you see. When booking excursions in touristy areas, you will often earn a better price simply by walking over to a competitor’s stand. Do your research online or by speaking with other travelers at your hostel. Come prepared with a price you expect to pay and shop around until you find a vendor that meets this price.
Tip: Be wary if the price is well below what you were expecting to pay. Often times you will pay cash for a paper ticket and there will be no way to get your money back if you are scammed. If it sounds too good to be true, it probably is. For peace of mind, pay a few extra dollars to book with a reputable company instead of the cheapest option.
10. Bring credit and debit cards with no foreign transaction fees
Foreign transaction fees are a great way to burn through money while abroad. Make sure your credit card is free of fees by choosing a travel credit card with no foreign transaction fees. Some cards will charge upwards of 3% per foreign transaction, so it’s always good to double check your card’s policy before embarking on your tip. In order to avoid fees every time you withdraw cash from an ATM, make sure your debit card is free of foreign transaction fees as well.
For more info on how to choose the best credit card for travel, click here.
