At least once a month, I receive an email or a blog comment from a reader asking for guidance on calculating travel expenses for different countries. Inquiries such as “What should I allocate for three months in Thailand and Vietnam?” frequently arise. To me, this is reminiscent of asking a psychiatrist you’ve never met for advice on how to salvage your failing relationship. Without a series of follow-up questions, any response would simply be a guess.
In “The World’s Cheapest Destinations,” I break down common expenses in various countries for recurring items like accommodation, meals, beverages, and local transportation. I then present broad ranges for what daily costs might look like for budget and mid-range travelers. The objective is to showcase which destinations present relative deals compared to others you might consider.
The issue is that I don’t know your spending habits, travel style, or even your exact destinations within a country, making the largest variable consistently absent: you. I am unaware of how much you need to pre-purchase, what compromises you’re willing to undertake to save on accommodation or public transport, or your shopping preferences.
Additionally, I don’t know how much you anticipate partying, whether friends will accompany you during the journey, or if you’re open to splurging on adventure activities or side tours. Your selection of destinations heavily influences expenses—spending three months in Southeast Asia will be a fraction of the cost compared to three months in Scandinavia, irrespective of your travel style—but budgets differ significantly from one person to another.
Determine What’s “Normal” for Your Travels
When my now-wife and I set off on our inaugural round-the-world journey, we were utter amateurs. We had little understanding of real costs beyond what guidebooks hinted at. This was prior to the internet age. Our budget was dictated by what remained after airfare, vaccinations, backpacks, and other initial travel costs.
Our budget was $20 per day, which is about $32 today, or $640 monthly. For everything. We found ourselves in numerous no-star hotels and guesthouses, sometimes sharing space with creatures flying or scurrying about.
Instead of estimating costs and aligning our budget to them, we figured out our monthly spending cap and adapted accordingly. This confined us to the least expensive countries, and even within those, some areas made it simple to adhere to our budget, while others required more restraint.
During our final month in Holland and England, it became unmanageable. Fortunately, we had done some work and had friends to stay with, yet we still ended up relying on credit cards just before our return home.
If you are inclined to plan in advance, it’s easier today. Here are some resources. Typically, these will be your key expenses over a month:
Accommodation
This is often the largest expense if you’re not in constant motion. It’s also the simplest to plan for in advance with some online research. You can consult Booking.com for examples of hotel costs, and many apartment rentals are listed there as well. If staying put for a month, Airbnb frequently offers discounts for extended stays.
Be honest about your comfort requirements. You might think you’re fine with hostels and basic hotels, but if you’re accustomed to business chain hotels, you may find it difficult. If mid-range accommodations are essential, you’ll need a mid-range travel budget.
Transportation
This can be your largest expense if you regularly travel to new locations instead of being a slow traveler. It can also be pricier in countries with quality trains and buses than in those where traversing an island in a chicken bus costs merely two dollars.
International flights are expensive, but short flights within Europe or Asia can be less costly than a taxi upon arrival. I recently purchased train tickets in Europe, costing between 20 and 55 euros, the latter for a nine-hour journey. That same distance in Thailand or Vietnam might run at half that price.
Food and Beverages on the Road
This could be your biggest expenditure if it’s your priority or in regions with low hotel costs. It can also be considerable if you secure free accommodation through house-sitting or home exchange programs, or if you have a job that includes housing but not food.
Nevertheless, the resources below can assist with estimates, and you’ll frequently spend less on meals if you can prepare some of your own.
Adventures, Admissions, and Tours
This is your entertainment and sightseeing budget for activities that aren’t complimentary. The more you wish to engage in, the higher this budget should be, particularly for guided excursions and boat tours.
If renting a vehicle, classify that cost here instead of under transportation, as it’s used for sightseeing. If you plan to do much sightseeing, consider city passes that encompass attractions and sometimes unlimited transport.
Miscellaneous Expenses
The “miscellaneous” category is generally minor compared to others but should still be included in your budget. Routine expenses such as toiletries, replacement clothing, bug repellent, and medical concerns may crop up, and you might need to pay for visas.
Using our frugal budget as a reference, $640 a month nowadays might mean allocating $40 or $50 for “miscellaneous.”