Many people ask me how I can afford to travel as much as I do. It’s not that I’m rich, far from it. Last year when I traveled around the world my budget was AUD$50 per day including accommodation. My current travels through South America have the same budget.

I’m in Ecuador at the moment which uses the US dollar as currency. The exchange rate between Australian and US dollars right now is not the strongest, so my AUD$50 equates to approximately USD$35 per day. To some, this doesn’t seem like very much money to live on in total each day. However to others it may seem like a lot. It really depends on your perspective.

My aim is to keep traveling for as long as I can. I’m not interested in buying souvenirs, or new clothes, or staying in five star hotels. So I can happily live within my budget and still achieve almost everything I want to.

Accommodation

When traveling on a tight budget, hostels are almost always the way to go. Here in South America most hostels are priced somewhere between USD$8 – $15 per night for a 6 bed dorm room. Many hostels will include breakfast and they are a great way of meeting other world travelers.

Another option is a simple but nice hotel. In both Peru and Ecuador I have found hotels that compare to hostel prices. Usually just a private room with a bed and shared bathroom, they have been simple but clean and comfortable. At the moment I’m staying in a hotel in the centre of Old Town Cuenca in Ecuador. For USD$10 per night I have a private room with double bed and a sink, with shared bathroom and kitchen facilities which suits me perfectly.

Cuenca hotel

At USD$10 per night my room is simple but comfortable. I have been able to spread out and hand wash clothing, saving more money.

Meals

I love trying the local food wherever I am. Whether in Paris or Thailand or Ecuador eating the locally made and produced food will almost always be the most delicious and best option for a tight budget. Now I know what you’re thinking, “What do you mean food in Paris is cheap! Their restaurants cost a fortune!” But I’m not talking about eating in the high-end gourmet restaurants for every meal. Eating locally to me is finding local cafes and markets that have the freshest and best food. Baguettes at a Parisian cafe cost approximately €5, and with that you’re likely to also get a dessert crepe and drink.

Local markets have fresh fruit and vegetables that are very cheap and most of the time if you buy in bulk you can barter the price down even more. Not only are they great place to eat some local produce, they are awesome for people watching and getting an understanding of how the locals live.

Cuenca markets

Local markets are crazy and amazing. Here at the Cuenca Mercado you can have a plate of freshly cut roast pork with potatoes and salad for $3.

I find when I’m traveling that I don’t eat anywhere near as much as I would in Australia, and it’s not just for budget reasons. As a diabetic I really need to eat three decent meals a day, but I often find that I’m not overly hungry whilst out exploring. Talking with other travelers this seems to be commonality. I think it might be because the boredom element of eating is taken away when you’re busy exploring the world and I find I’m much more in-tune with what my body actually needs. Snacking on banana chips and a freshly made coconut juice is often enough for my lunch and I will eat something more substantial and healthier for dinner.

Lunch Cuenca Cafe

Today’s ham and salad baguette and hot chocolate cost $3.75

Here in Cuenca I’ve stopped for a few weeks because I love the city and also to learn Spanish. So I’ve been able to buy some supplies that I can store in the shared hotel refrigerator and cook in the kitchen when I want. However the kitchen isn’t overly great here, so I’ve mainly just been buying breakfast supplies and eating out for lunch and dinner. My breakfast each morning consists of a banana and a small bottle of yoghurt, both of which I bought at the supermarket.

3 bananas and a 6 pack of yoghurt cost USD$4.10 = USD$1.36 per day + 3 yoghurts to spare

Bananas and yoghurt

Cheap and healthy breakfast

Lunch and dinner are also usually simple but delicious. Today I went to a nice Panaderia Cafe (Bakery Cafe) and ate a ham and salad sandwich with a hot chocolate for USD$3.75. Some days when I’m a little more hungry I’ll have some pasta or fish with rice and salad that costs approximately USD$8. Here in Ecuador lunch is the main meal of the day with dinner usually something light such as soup or a sandwich.

So my daily spend on food is:

Breakfast – Banana + yoghurt = $1.36

Lunch – Pasta + tip = $9

Dinner – Soup + cake for dessert = $6

Total = USD$16.36

Activities

Everywhere in the world there are so many things you can do for free. Almost every city has free walking tours aimed at backpackers and travelers. They usually run for 3 – 4 hours and are excellent at giving visitors a feel for the city, historical and practical information and providing the opportunity to meet others. Most often advertised in hostel reception areas and on notice boards, the tours are open to anyone who wants to join and guides usually request a tip of whatever you can afford at the end.

But even if a city doesn’t have a free walking tour, it’s awesome how much you can see just walking a city yourself. I’ve stumbled onto amazing stores, parks and cafes from getting lost as I explore. I am also much fitter from walking. When the sun is shining, local people are out and happily going about their day and I feel good being amongst them.

Cuenca streets

I see amazing things by exploring on foot.

Another inexpensive way of exploring is by using public transport. Depending on where you are a bus or metro ticket can cost anywhere from $0.25 – $4.50 and will get you around most parts of the city quickly and easily.

I’m also usually living much of my life online and am forever searching for free wifi. Luckily my search isn’t usually difficult because all hostels, most hotels and many cafes and restaurants provide free wifi to their customers. I really like being able to sit in a nice cafe organising my travel plans, talking with my family and friends through Viber or Skype, or maybe doing a sneaky Game of Thrones download. It’s so easy to connect with the rest of the world when you’re out and about exploring it.

If you’re more into visiting museums or art galleries during your travels, look online to see if they offer free or half price days. The MoMA in New York for example has Free Friday Nights from 4pm – 8pm. So rather than paying the $25 adult fee, visit on a Friday and explore this amazing place for free.

Budget Blow-outs

Of course a tight budget can not be stuck to everyday. I absolutely have days where my budget is completely blown, and that’s okay. It’s all a matter of balance over the period of time you’re traveling. A couple of weeks ago I was sick and didn’t want to be staying in a hostel dorm room so decided to spend AUD$40 a night on a private hotel room. Other times when I’m staying in a hostel I’ll meet people and want to go out for dinner and drinks. And whilst alcohol is definitely a money sucker, having a great time is why I’m here so again my budget will be stretched.

Whilst I’m here in Cuenca I’m paying to attend Spanish school. Costing $9 per hour it is an extra expense over the 2 weeks I’m planning on studying, but one I’m happy to pay.

But these budget blow-outs are balanced out by days like today. I’ll be under budget today having only spent money on my accommodation, lunch and dinner.

Today’s total spend:

Breakfast = $1.36

Lunch = $3.75

Dinner = $6.50

Accommodation = $10

Total daily spend = USD$21.61 (which gives budget savings of $13.39 today)

So that’s how I do it. Sure my clothes might be looking a little old, I’m not staying in 5 star resorts or eating in luxurious restaurants. But I am traveling around the world, having life-changing experiences everyday and am the happiest I’ve been in my life.