How to Create a Backpackers Budget?
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This is a tricky topic because there is no right or wrong, approved or disproved way to budget. We must choose a method best suited for our unique traveler wants and priorities! What are your priorities? Are you a foodie? Enjoy dining at the best and brightest restaurants? Are you a creature of comfort and prefer sleeping in mid-range hotels? Are you a souvenir-a-holic and enjoy days of shopping? Once you have determined your priorities, it's time to break down what I call the Big 5 - The biggest expenses you'll encounter on any trip abroad. Big 5 Expenses: 1. Accommodation 2. Transportation 3. Food 4. Entertainment 5. Shopping |
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Now consider your overall budget, less the price of your roundtrip airfare (keep return airfare separate from this budget) and determine the percentage of your budget you want to put where. Let's consider my percentages as an example. My numero uno priority, Entertainment!!
Reggie's Backpacker Budget Breakdown:
1. 10% - Accommodation (I don't need a posh place to rest my head, a mattress and reasonably clean toilet serve me fine)
2. 25% - Transportation (I move around a lot and by capitalizing on cheap, local transport I can usually keep this to a quarter of my overall budget)
3. 10% - Food (Don't get me wrong, I'm a foodie, but I'm a, "street foodie". No fancy restaurants for me, I want authentic and budget street cuisine)
4. 50% - Entertainment (This is where adventure activities, cultural tours and museum/historical entrance fee's add up)
5. 5% - Shopping (I love to shop but only in the market setting. It's very rare I'll pay full price for anything. I haggle and bargain hard)
Everyone okay so far? Here comes the difficult part...math. Multiply these percentages by your overall budget to arrive at your new target budget. It may sound complicated but it's really quite easy. Let's use an example:
"I want to backpack through Peru. I have 9-days, 8 nights. My budget, exclusive of return airfare, is $1,500." Ready, Set, Budget!!
1. Accommodation = $150 (1,500 X .10 = 150)
2. Transportation = $375 (1,500 X .25 = 300)
3. Food = $150 (1,500 X .10 = 150)
4. Entertainment = $750 (1,500X.5 = 750)
5. Shopping = $75 (1,500 X .05 = 75)
With tangible numbers in place it's now time to research and verify your budget's likelihood for success.
I always start by heading to my local library and renting a travel guide book on that specific country. Lonely Planet and Frommers are just a few of my fav's. Or, if your budget accommodates, purchase a used guide book online. Guide books are fantastic tools providing up to date pricing on everything from accommodation to activities. Other great tools can be found online. One I have grown very fond of over the years is HostelWorld.com. It rates thousands of hostels around the world and gives up to date price lists. Using HostelWorld.com, I learned the average price for a hostel dorm bed in Peru would cost around 9 USD/Night. Times 8 nights = $72
Reggie's Backpacker Budget Breakdown:
1. 10% - Accommodation (I don't need a posh place to rest my head, a mattress and reasonably clean toilet serve me fine)
2. 25% - Transportation (I move around a lot and by capitalizing on cheap, local transport I can usually keep this to a quarter of my overall budget)
3. 10% - Food (Don't get me wrong, I'm a foodie, but I'm a, "street foodie". No fancy restaurants for me, I want authentic and budget street cuisine)
4. 50% - Entertainment (This is where adventure activities, cultural tours and museum/historical entrance fee's add up)
5. 5% - Shopping (I love to shop but only in the market setting. It's very rare I'll pay full price for anything. I haggle and bargain hard)
Everyone okay so far? Here comes the difficult part...math. Multiply these percentages by your overall budget to arrive at your new target budget. It may sound complicated but it's really quite easy. Let's use an example:
"I want to backpack through Peru. I have 9-days, 8 nights. My budget, exclusive of return airfare, is $1,500." Ready, Set, Budget!!
1. Accommodation = $150 (1,500 X .10 = 150)
2. Transportation = $375 (1,500 X .25 = 300)
3. Food = $150 (1,500 X .10 = 150)
4. Entertainment = $750 (1,500X.5 = 750)
5. Shopping = $75 (1,500 X .05 = 75)
With tangible numbers in place it's now time to research and verify your budget's likelihood for success.
I always start by heading to my local library and renting a travel guide book on that specific country. Lonely Planet and Frommers are just a few of my fav's. Or, if your budget accommodates, purchase a used guide book online. Guide books are fantastic tools providing up to date pricing on everything from accommodation to activities. Other great tools can be found online. One I have grown very fond of over the years is HostelWorld.com. It rates thousands of hostels around the world and gives up to date price lists. Using HostelWorld.com, I learned the average price for a hostel dorm bed in Peru would cost around 9 USD/Night. Times 8 nights = $72
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Next consider your main transportation legs and their associated costs. I learned mapping out helps tremendously! In this case:
Lima-Cusco Cusco-Puno Puno-Arequipa Arequipa-Lima After researching buses versus flights, I found a flight from Lima to Cusco was a smart idea. Saving time and only costing $50 more then a 2-day bus ride. The rest of the legs could be completed on local buses (traveling in overnight sleeper class to save time). All of this research yielded an estimate of $300. That leaves an extra $150 in your transportation allowance for taxi's, intra-city buses, or any pesky hiccups. |
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Next overhead, food. With a 9-day budget of $150 I can easily enjoy one sit down meal per day, 6 USD, along with 2 cheaper street food meals, 3 USD a piece. That's a $12 per day food allowance. The other $4 from my $16 dollar/day allowance (150/9 =16.66) could be used to enjoy a beverage or two.
Now here comes the biggest part of my budget...ENTERTAINMENT! Worth a whopping 50%!!
Researching a variety of companies and online forums, I learned a 3-day Machu Pichu hike and tour would cost around $300. Other primary activities included staying with a local family on Amantani Island in Lake Titicaca ($40), a multi-day hike into the Colca Canyon ($50) and paragliding in Lima ($80). Combining all these definite activities, I reach $470. That leaves $280 in the budget for all other activities that may come up along the way!! Which I'm sure will be plenty!!
Final budget concern, shopping!! As mentioned before I am an avid market-goer and keen bargain shopper. I love to haggle and can usually find what I want for a price I'm willing to pay. Sure it takes patience, but my budget always thanks me!
So let's calculate our estimated totals:
1. Accommodation = $72
2. Transportation = $300
3. Food - $150
4. Entertainment = $470
5. Shopping = $75
______________________
= $1067
- $1,500
_________
= $433 of Remaining Moola
From start to finish this entire backpacking budget required just 2-hours of research and planning. That's it! Taking time to investigate and organize a trips finances is the key to any backpackers budget success! ~ Happy Trails ~
Now here comes the biggest part of my budget...ENTERTAINMENT! Worth a whopping 50%!!
Researching a variety of companies and online forums, I learned a 3-day Machu Pichu hike and tour would cost around $300. Other primary activities included staying with a local family on Amantani Island in Lake Titicaca ($40), a multi-day hike into the Colca Canyon ($50) and paragliding in Lima ($80). Combining all these definite activities, I reach $470. That leaves $280 in the budget for all other activities that may come up along the way!! Which I'm sure will be plenty!!
Final budget concern, shopping!! As mentioned before I am an avid market-goer and keen bargain shopper. I love to haggle and can usually find what I want for a price I'm willing to pay. Sure it takes patience, but my budget always thanks me!
So let's calculate our estimated totals:
1. Accommodation = $72
2. Transportation = $300
3. Food - $150
4. Entertainment = $470
5. Shopping = $75
______________________
= $1067
- $1,500
_________
= $433 of Remaining Moola
From start to finish this entire backpacking budget required just 2-hours of research and planning. That's it! Taking time to investigate and organize a trips finances is the key to any backpackers budget success! ~ Happy Trails ~
Have your own budget mantra or guidelines to follow? Please share them @ Backpackers Wanted
