7 Powerful Money Saving Tips for Budget Travelers with Matthew Kepnes – Episode 195
Despite what you might think, traveling on a budget doesn’t mean sacrificing fun, experiences, or comfort. With the right strategies, you can explore the world without going broke or completely abandoning your financial goals. Esteemed budget travel expert Matthew Kepnes, known as Nomadic Matt, shares invaluable money saving travel tips for budget travelers, even during inflation, times of uncertainty, or when money feels tight.
Since his life-changing backpacking trip to Thailand in 2005, Matt has inspired millions to travel on a budget through his pioneering travel blog, nomadicmatt.com, guidebooks, courses, and practical money saving travel tips.
Having visited over 100 countries in the last two decades, he has turned his passion for exploration into a mission to help others travel better, cheaper, and longer.
Here’s a compilation of actionable advice to help you save money while traveling. Navigating the ins and outs of budget travel, Matt details how to stretch your dollar further than you ever thought possible.
Continue reading for how to travel on a budget, or listen to this podcast episode to learn how you can travel the world on just $75 a day!
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1. Improve Your Mindset
The first step to budget travel is changing your mindset.
Many people believe they can’t afford to travel, which leads to a cycle of inaction.
As Nomadic Matt puts it, “If you only say no, you only see roadblocks.” Instead, start by believing that travel is possible for you.
The notion that travel is expensive comes from decades of advertisements, media, and blockbuster movies. However, vacations can be enjoyable without spending lots of money.
Write Down Your Expenses: Track where your money goes, even small purchases. This will help you identify areas where you can cut back and add those savings to your travel fund.
Listen to this podcast episode for tips on how to get started saving money for traveling in a travel fund.
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2. Focus on Value, Not Just Cost
Budget travel is not solely about spending less; it’s about getting the best value for your money.
“Budget travel is in part about spending less, but it’s also about being frugal and knowing where to splurge and where not to splurge,” says Matt.
Prioritize Spending: Determine what experiences are most important to you and allocate your budget accordingly.
For example, you might splurge on a unique guided small group tour while saving on accommodation by using points, staying at a hostel, or a moderately priced hotel.
3. Identify Your Major Expenses
Wondering how to save money on travel?
According to Nomadic Matt, the biggest expenses for travelers typically include:
- Accommodation: “You can find ways to save through credit card points, house sitting, home exchanges, or hostels,” Matt advises. Also, consider travel Facebook groups, bed and breakfasts, and 2-3 star hotels.
- Food: Eat like a local. Instead of dining at tourist traps, seek out local eateries or street food. “You’ll get the best meal of your life at a ramen place in the train station where all the workers eat,” Matt suggests.
- Activities: Research free or low-cost activities in your destination. Many cities offer free walking tours or community events.
- Alcohol: Be mindful of alcohol expenses, as they can quickly add up. “Alcohol is where budgets go to die,” warns Matt. Consider limiting your drinking or opting for local beverages that are more affordable.
4. Plan and Research
While spontaneity can be fun, a little planning goes a long way in budget travel.
“There is no information that’s not available online,” Matt emphasizes.
Do Your Research: Before you travel, look up the costs of food, transportation, and activities in your destination. This will help you avoid surprises and budget more effectively.
Here are some of our favorite travel planning resources:
Tired of reading? Listen to this podcast episode on Spotify.
5. Explore More Affordable Destinations
One of the most effective ways to stretch your travel budget is by choosing destinations where your dollar goes further. Certain countries offer incredible value, making them ideal destinations for budget-conscious travelers.
For instance, destinations like Taiwan and South Korea are often overlooked by many travelers. Yet, they offer a wealth of experiences at a fraction of the cost compared to more popular locations, such as China or Japan.
Albania, Slovenia, Cambodia, Bulgaria, and Romania are also relatively affordable destinations.
In these countries, the American dollar goes further, allowing you to enjoy local cuisine, cultural experiences, and activities without draining your budget.
Plus, traveling to regions where your dollar has greater purchasing power can help you offset the costs of more expensive areas.
For example, if you plan a trip that includes both Europe and Southeast Asia, you can offset the higher costs of European cities by spending time in Southeast Asia, where daily expenses are significantly lower.
6. Travel Like You Live
In your day-to-day life, you grocery shop, take public transit, go to the park, attend free events, and wander around.
Don’t forget to do these same things when you travel.
You do not have to Uber everywhere or go to all the museums.
Finding your day-to-day rhymn wherever you go will help you not only save money, but also connect with the local culture and way of life.
7. Consider Free Things To Do
Finding free things to do while traveling is a great way to save money and still have an enriching experience.
Here are some suggestions:
- Free Walking Tours: Many cities offer free walking tours led by local guides. These tours can provide valuable insights into the culture and history of the area without costing an arm or leg. Just remember to tip your guide if you enjoyed the experience!
- Museums with Free Admission: Look for museums that offer free entry on certain days or times. Many cities have cultural institutions that allow visitors to explore their collections without an admission fee.
- Local Events and Festivals: Check tourism boards and local listings for free events, festivals, or farmers’ markets during your visit. These can be great opportunities to experience local culture and meet people. Look for community yoga classes, art exhibits, concerts, and other types of public performances.
- Parks and Natural Attractions: Explore local parks, beaches, or hiking trails. Nature is often free to enjoy and can provide a beautiful backdrop for your travels.
8. Eat Like a Local
Matt recommended spending less on food by eating like the locals do and avoiding expensive imported items.
He emphasized that you can find great meals at local spots, such as hole-in-the-wall restaurants, which often offer delicious food at a lower price.
For example, he mentioned that in Japan, while high-end meals can be costly, you can enjoy an amazing ramen meal at a local eatery for a fraction of the price. Or inexpensive local food options, like hot dogs in Iceland, rather than dining at expensive restaurants.
If you’re looking for more ways to meet people, consider using sites like Eatwith and Traveling Spoon for authentic food experiences and cooking classes with locals in their homes.
Final Thoughts: Budget Travel is Still Possible!
Traveling on a budget is entirely possible with the right mindset and strategies. By focusing on value and being flexible, you can explore the world no matter how small your income or budget.
So start planning your next adventure today, and remember that every little bit saved can lead to incredible experiences down the road.
Looking for even more money-saving travel strategies?
Grab your copy of “How to Travel the World on $75 a Day” by Matthew Kepnes!
This newly updated edition is packed with invaluable tips and tricks to help you navigate the world of budget travel, find the best travel deals, and maximize your adventures.
This book is based on Matt’s real-life experience traveling around the world to Europe, Australia, New Zealand, Southeast Asia, and South America — adjusted for inflation.
Don’t let the rising costs of travel hold you back—discover how to stretch your dollar further and explore amazing destinations!
⏩ Inspired to hit the road? Pick up a copy of “How to Travel the World on $75 a Day.”
Read Next: Backpacking For Beginners with Will Hatton
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Danielle Desir Corbett is an award-winning and 6x grant-funded travel writer and podcast host who went from financial struggle to visiting 27+ countries all without waiting until retirement. Her story is proof that budget doesn’t limit adventure. Tune into The Thought Card Podcast for practical strategies to travel smarter and live on your terms. Say hello: thethoughtcard (at) gmail (dot) com.
