Traveling costs money.

Crazy concept, right?

Not exactly.

However, the notion that "traveling is expensive," is one of the limiting factors many people use to choose not to travel.

That belief is a little distorted. Traveling does cost money. But it doesn't have to cost as much as you think.

I typically have 3 basic necessities while traveling–food, housing, and transportation–but I know I'll have to spend money on other things occasionally.

I've built up a repertoire of different ways to save money on all these essentials and more! Here's my cheat sheet for living close to your means while still having a great time traveling.

Food

Breakfast

The easiest way to spend 30% less on food is to get creative with breakfast.

1. Choose to stay at places that offer free breakfast
2. Shop for breakfast at a supermarket instead of eating out
3. Skip breakfast altogether

Eating out

It's easy to want to ball out during your first time in a new place.

I also like eating out to taste the local cuisine, but I never eat at fancy restaurants. Typically, I look for street food and hole-in-the-wall spots that never cost more than $10-15.

That's probably where the locals are eating anyway, so this is always the best option!

Cooking

I don't think the opportunity cost of cooking is worth it, but I'm including it on this list because it's insanely cheap.

You can buy enough pasta, eggs, or rice at the supermarket to last you an entire week for only a few dollars.

Of course, cooking takes time, and you miss out on the local food culture, so you have to decide what your priorities are!

Housing

The cheapest and most fun accommodation option will always be a hostel. This is the easiest way to reduce your housing costs by 50-70% if you've only ever stayed at hotels or Airbnbs.

But, there are ways to save even further.

Book direct

I used to book all my hostels through HostelWorld. They're a great place to do research on the best hostels in your city.

But at the end of the day, they're a booking platform and they take a service fee each time you book.

Going directly to a hostel's website will almost always save you 5-10% on the final cost. Often, if you book 2-3 nights on their website, you can also receive a 10-15% discount on the overall cost.

Visit friends

I've met some travelers who exclusively go to cities where they know people.

It's free accommodation after all! And it's always more fun when you know someone who can show you around.

This is a great way to reduce your housing costs to $0 and experience a place through the eyes of a local.

Couchsurfing

The final housing hack is to use Couchsurfers. It's an app that allows you to stay at people's homes all over the world for free.

Usually, hosts are just friendly people who love showing off their city and are curious about meeting folks of different backgrounds.

While this app is free, if you stay with a host, it's always nice to buy them dinner or at least a drink to show your appreciation for their hospitality.

Transportation

Eurail

The first thing I did before starting my trip was to buy a Eurail pass, which gives me unlimited access to Europe's train network for affordable prices.

Eurail runs a 20% off sale every Black Friday, so I bought 6 months of train tickets for about $1,200.

For someone moving around often, this is the best way to get the most bang for your buck in Europe.

Buses

Buses are also a cheap way to get around, although prices can fluctuate widely.

There are some instances in which I will pick a bus over a train because of price or convenience, and I've met people who rely exclusively on buses to get around.

They're especially useful in Eastern Europe or Southeast Asia where train infrastructure isn't quite as developed as Western Europe or East Asia.

Walk

If my destination is 45 minutes or less, I almost always walk.

Walking is free, it allows you to see the nooks and crannies of a city, and it takes longer than other modes of transportation. That means that you have less time to spend money because it takes more time to get to the destination.

Plus it's just a healthy lifestyle choice! Most backpacker friends I've connected with are big walkers as well.

Everything Else

You probably want to do something beyond finding accommodation, eating food, and getting from point A to point B! Here are my best tips for saving money on the rest of your miscellaneous expenses.

Working out?

Skip the gym day pass. I wrote an entire article about how to work out while traveling, and it costs $0. Go for a run, use a calisthenics park, or walk around a city for exercise. Those are all free!

If you're working out 3-4 days a week, day passes could run you upwards of $50 a week. Save that money for some protein shakes instead!

Sightseeing?

Free walking tours!!! It will cost you $5-15 in tips and you'll see the highlights of the city from a local guide.

You'll also meet other budget travelers because something about the word free seems to attract us like moths to a flame.

Also, avoid going inside most buildings, except the ones that really, really matter to you.

Buildings cost money, and they're often overrated. Once you've been inside a church, temple, mosque, or other religious structure, you'll realize that they're all mostly the same.

But, do go inside if it's something you really care about! Just pick and choose your battles.

Partying?

Buy alcohol at the supermarket instead of the hostel. Sometimes you have to be discrete because some hostels don't let you bring alcohol, but you can buy a 750ml bottle of liquor or a 6-pack of beer for the price of one drink at a bar.

Then you can share with everyone, save money, and people will think you're super nice!

Essentials

At some point, you will need to do laundry.

You'll need to get a haircut.

Maybe you'll need to buy more shampoo, a winter jacket, or a new pair of shoes.

These things can be more or less expensive depending on where you choose to do them and thus, plan ahead to do these things in places where they are cheap!

Bonus

It's a lot easier to follow the above guidelines when there's no external influence. But once you make friends, you can often feel peer pressured to spend money on things you don't need to.

It might just be a museum ticket here and a beer there, but those things add up!

The best solution is to make friends with other budget travelers. They'll often be pressuring you to spend less money and incorporating many of the tricks described above.

It's the perfect reinforcement loop to stay below budget!