Previously, I've written about how to save money and how to afford to travel. Now, I want to get more direct: how much does it cost to travel?

The answer: not as much as you think.

The Daily Budget

I presumed I could comfortably live as a backpacker with a budget of $100 per day. This was based on weekend trips while living in France and Singapore and gauging how much I spent.

$100 a day sounds like a lot of money, but that's $36,500 for an entire year. If you're working in the US, chances are that your starting salary is at least double that.

If you put your mind to it, saving up $36,500 shouldn't take long. Of course, this isn't the case for people in many countries. I feel fortunate to live and work in the US, where the dollar is strong and salaries are generous.

However, $36,500 is the price of backpacking for an entire year! Hardly anyone travels that long. If you want a 3-month hiatus, that's less than $10,000. Many people find that's the maximum they'd travel anyway.

I base everything on this principle of $100 daily and work backward from there.

The Reality of a $100 Budget

I hardly ever spend $100 in a day.

I would spend more per day when I was traveling for shorter periods. I would pay for museums, excursions, nice restaurants, alcohol, and more.

Those become occasional luxuries when I got in this for the long haul. Having these options in every city decreases their appeal and I prefer saving my money rather than another "experience" just because it's the thing to do in the city.

You don't normally see locals doing these things either.

If I'm living barebones (which is often), I spend $25 for hostel accommodation, $5 on breakfast, $10 for lunch, and $15 for dinner. That's $55. Sometimes, that number is even less because I'm crashing with friends or eating free hostel meals.

That allows me $45 for those "fun things," but I prefer to wander around the city, work out, or chat with locals and travelers. For me, these experiences are always more fulfilling and cost $0.

It also gives me the space in my budget to buy a round at a bar or pay for someone's meal, which is always appreciated.

The beauty of rarely finishing a day over budget is that you can extend your trip longer!

Different Countries = Different Costs

A caveat in the $100 budget is that not every country costs the same. I've found that $100 is what it costs to visit the most expensive countries in the world–most of Western and Northern Europe.

In those places, $100 makes me sweat a little bit. Hostels and food are more expensive and I hardly ever have the discretionary experiences I had without hesitation in Vietnam or Thailand.

But, I won't spend more than 1 or 2 months in these areas, so it's important to remind myself that it's okay to go over budget from time to time, especially knowing this is as expensive as it gets.

Thanks to friends in the UK, Switzerland, France, Germany, and more, I've managed to stomach this by taking advantage of free accommodation :)

On the other hand, living this lifestyle in Southeast Asia, Eastern Europe, or Africa, I don't think I could hit $100 if I tried.

Also, I'm referring to USD 100, which differs from EUR 100 or GBP 100. As of this writing, USD 100 is currently EUR 93 and GBP 80, despite similar prices. So the budget can shrink by over 20% in the world's most expensive places.

Finding Your Comfort Level

A second caveat in the $100 per day budget is that this works for me because I tolerate a certain level of discomfort when I travel.

I don't mind sleeping in a dorm with 10 other people for months. Or on the floor of an airport before a 6:00 AM flight.

I don't mind eating breakfast at a grocery store. Or sacrificing a 3-course meal for a kebab.

I've actually come to prefer these things. However, I worked up to this. I used to pay for Airbnbs and fancy dinners too. Over time, I realized I could live with less and be just as happy.

That might not be everyone! $100 per day is what it costs for me to be comfortable.

You might want to stay at a hotel or enter every museum. Maybe your budget should be $150 or $200 a day as a result. Don't sacrifice comfort at the expense of your happiness–your trip will feel miserable! Find what works for you and be certain you can afford that lifestyle.

Upfront Costs

A third caveat in my $100-a-day budget is that it doesn't include upfront costs and there are some pricey ones.

Flights to your starting destination can be over $1,000.

Travel insurance can cost close to $1,000 depending on the duration of your trip.

Eurail or JR (Japan) Passes are other worthwhile investments for weeks or months spent in those regions. They'll make transportation far more seamless and save you money in the long run, but they'll cost hundreds of dollars upfront.

A SIM Card or International Plan from your phone carrier is another essential that might cost $20-100 a month depending on your coverage.

Finally, if you're new to backpacking, you'll need to buy a sturdy backpack and travel essentials–another few hundred dollars.

That's $2000-3000 for an extended trip–less than 10% of $36,500. That's not bad! But it's worth noting because it's a hefty upfront cost. Of course, the shorter the trip, the higher the percentage of the budget these costs will be.

Miscellaneous Costs

I'll close with a few other miscellaneous costs that I bake into my $100 budget–albeit less frequently than accommodation and food:

• Laundry (1x/week): $5-10
• Restocking toiletries: (1x/month): $10
• Haircuts (1x/month): $15-20
• Transportation not covered by Rail passes (budget flights, buses, miscellaneous Eurail fees): $5-100+.
  
  Travel days–especially with flights–are often over budget. Good thing I'm under budget most other days!

Has this changed the way you're thinking about your next backpacking trip? Let me know in the comments!