Setting a budget whilst travelling long-term can seem like a daunting task. It is one of those decisions where you have to work out how much you have to spend, where you’re going to travel to, and what activities you want like to do.
The bonus about backpacking through Asia is that it can be cost effective, compared to places like Europe, Australia or New Zealand. Each country can cost differently, but whether you are travelling to a first world or third world country, your budgeting strategy should be the same.
Start by asking yourself a few honest questions: First you need to decide how long you are going to be travelling for? Which countries would you like to visit? Are you planning on working whilst travelling? Also make a note of which countries you can legally work in. Then start by making a list of all the countries that you might want to visit on your trip. Make a note of the costs of any specific activities or tours in your chosen countries you’d like visit. How are you going to travel once you get there; by bus, train, boat or plane?
Simple things you should consider before finalising your travel budget:
Don’t underestimate the little hidden costs: A good example of this is laundry and food. The cost of washing your clothes or eating, varies from country to country. And yes, you will need to wash your clothes and eat food! Other things to consider are added costs of visas on arrival, currency exchanges, ATM fees and loose change you can’t get rid of. All these little costs can eat into your budget without you realising.
Keep an emergency slush fund: Always leave a bit of money aside for emergencies. Things can go wrong while travelling, and you never know when you need money to get you out of trouble, or to fly home.
Finalising your budget: Once you’ve subtracted your larger costs of activities, tours and flights, you can divide how much money you have left, by how many days you’re planning on travelling. This will provide you with a daily spending allowance. This should help you to not worry about running out of money, and hopefully provide you with a little extra for a couple of great nights out!