9 Tips on How to Travel Southeast Asia on a Budget

Southeast Asia is one of the major backpacking destinations worldwide. Not only does this part of the world offer amazing culture and landscapes to explore but also super cheap prices that allow you to travel for months at a time with only a little money in your pocket.

Here, I’ll show you the best tricks on how to travel Southeast Asia on a budget. This will help you make the most out of your trip and travel for as long as possible.

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1. Track your expenses!

If you want to travel Southeast Asia on a budget, you need to be aware of your expenses. Especially in this part of the world, where everything is so cheap, it’s easy to forget how much you’re actually spending. A dollar here, a dollar there – it all adds up!

For this reason, I recommend writing your expenses down. There are also some free apps like 1Money that analyse your expenses by category, day, week, and month. Additionally, you can set up a trip and set a goal for your South East Asia backpacking budget. This way you can always check whether you are within your budget range or not.

Once you know your expenses and you know what you’re spending, you can start cutting down on your costs. Also, you should prioritize what you’re willing to spend money on and sacrifice comforts you can live without. Some people value comfortable accommodation whereas others want to partake in every tour or don’t want to miss out on culinary opportunities.

For this reason you should know your expenses, know what you value, and know what you are willing to spend money on! So, that you will have a good overview and awareness of your South East Asia backpacking budget!

2. Know the price!

One of the main mistakes, I see people making is not knowing the real price, although this is crucial if you want to travel Southeast Asia on a budget! This is because hustlers in Asia will try to charge foreigners a ridiculous amount of money for purchasing products at the market, taking a taxi etc.

Thus, the best way to avoid getting ripped off is to know the real price. Compare prices and ask the locals how much they pay for certain things.

And last but not least; negotiate! While this is a foreign concept in the Western world, negotiating prices in Southeast Asia is as common as drinking water. So don’t be shy to ask for a lower price if you feel like you are being overcharged.

This is where knowing the real price comes into play. If you know what’s a good price and what’s not, you’ll feel more comfortable asking for a price that you think is appropriate. And this will help you stay within your South East Asia backpacking budget!

3. How to cut down on transportation costs when travelling Southeast Asia on a budget

Cheap flights to Southeast Asia

When flying to Southeast Asia, book a cheap flight with local Southeast Asian budget airlines! And if you can, try to be flexible with dates. If you are not set on a specific date, you can find flights for half the price or less.

I use Skyscanner* for almost all of my flights because it usually offers the cheapest prices and gives you the opportunity to look at prices by month rather than by day. This helps you find the cheapest day of the month and the cheapest airline to fly with.

Remember, if you want to travel Southeast Asia on a budget, saving money on transportation to get there is the first step to achieve your goal!

Public transport

Once you’ve arrived at your destination, it’s best to use public transport to get around. Especially, on the mainland of Southeast Asia you will find cheap bus tickets to anywhere you want to go.

If you are planning to go on a long bus ride, it may also be advantageous to book a night bus. This way you don’t have to spend money on accommodation for the night, which will help you stay within your travel budget.

Keep in mind, that busses and trains sometimes book out during high season. If you want to secure your seat in advance, I recommend booking through 12GoAsia*, as they only charge a very small commission fee.

Rent or buy a motorbike

If you know how to ride a motorbike, or are willing to learn, you should rent or buy a bike to travel around. Renting a bike for a few days will allow you to explore the local area and get off the beaten path – while saving money.

However, if you’re travelling around island states like Indonesia or the Philippines, it may be more difficult to buy a bike, as you will have to take ferries to get around the islands.

Luckily, this is easier if you are travelling on the mainland of Southeast Asia like Thailand, Vietnam etc. In this case, I highly recommend buying a bike. This way you’ll have your own transportation anywhere you go and you save money on bus tickets and local taxis. The only thing you will have to pay for is the bike itself and gas, which is very cheap in Southeast Asia.

My partner and I bought a bike in Vietnam for only 260 USD and all the bikes we looked at ranged between 250 USD and 300 USD. This motorbike allowed us to travel through Vietnam and Cambodia for weeks without having to pay for any transportation costs. And before we left Asia, we were able to sell the bike and even got the money back we spent on it (in fact we even made a profit).

Therefore, this is one of the best things to do if you travel Southeast Asia on a budget and want to cut down on transportation costs!

4. Find budget-friendly accommodation!

If you want to travel Southeast Asia on a budget, you should watch out for affordable accommodation. This is an easy way to cut down the costs of travelling! Especially guest houses, hostels, homestays, and low-budget hotels offer good value for money.

If you’re solo-travelling, a bed in a dorm room is often the cheapest and most social option. But when travelling with a partner, you will find that it’s almost always cheaper to book a private room in a budget-friendly accommodation than two beds in a hostel dorm.

Additionally, you’ll usually get to choose between a fan-room and a room with air-conditioning. I almost always choose the fan room because it is cheaper and also keeps the mosquitos away (if there are any).

Also, I like to walk up to the accommodation and ask for the price of a room rather than booking it online. I noticed that I often get cheaper prices when I speak to a representative directly.

However, if you’re afraid that the accommodation is fully booked, you may want to book your accommodation in advance. To book accommodation online, I can recommend these apps for cheap accommodation:

• Hostelworld* accommodates the best hostels all over Southeast Asia.
• Booking* has the biggest variety of accommodation online for low prices.
• Agoda* offers amazing 24-hour flash deals as well as cashback rewards. They’re my go-to when booking last-minute.

If you take book cheap accommodations, you can easily save money while traveling.

5. Eat local food!

If you’re wondering how to travel Southeast Asia on a budget, you should observe what the locals do. Where do they stay, where do they eat (etc.)? This way you can easily find the cheapest options in the area.

Especially street food, which is very popular among the locals, is a big part of Southeast Asian culture and something everyone who’s traveling through Southeast Asia has to try!

On the streets or in street food stalls, you’ll be able to find delicious meals and snacks for a super cheap price. Depending on where you are (prices vary on the country and region you are in), you will be able to eat a high-quality meal for only 1 USD to 2 USD. Snacks are even cheaper than that!

But beware of the Western food trap! Compared to local food, Western food can cost three to four times the amount of a local dish. So, try to not go out to Western restaurants for every meal but give local food a try.

When I’m in Asia, I eat almost exclusively local food. Not only does it help me stay within my backpacking budget, but it also tastes delicious and is something I don’t want to miss out on when I’m traveling in Southeast Asia.

6. Alcohol: The budget traveller’s enemy

On my travels, I meet so many backpackers that count every penny of their expenses just to spend it all at night on alcohol. And while drinks in Southeast Asia are extremely fair-priced, Alcohol is one of the major expenses for many backpackers.

Naturally, you’ll want to go out for a sunset drink or hang out at a beach bar while being on your holiday in Asia and there’s nothing wrong with this! But there are still a few tricks you can use to keep your alcohol consumption on a budget.

Keep it chill!

Especially when travelling for a long time, drinking every night can quickly add up. So, take a few days off and don’t drink every night. This will not only benefit your health but also your wallet.

Drink smart to stay on your South East Asia backpacking budget!

And when you go out for drinks, drink smart! Take advantage of happy hours (you will find them everywhere in Asia) and compare drink prices. Cocktails for example cost up to three times the amount of a beer or the local spirit. Wine is often even more expensive. So, choose your drinks wisely and don’t let the alcohol enemy ruin your budget!

7. Travel Southeast Asia on a budget by choosing the right currency exchanges and ATMs

Other things to keep in mind when travelling Southeast Asia on a budget are currency exchanges and ATM withdrawals. Choosing the right currency exchanges and ATMs can save you a lot of money super easily!

Currency exchanges

Always make sure to check the exact currency exchange rate before exchanging any money. Also, check whether the currency exchange charges any extra interest fees. Then calculate the correct amount of money before handing it over.

When exchanging currency, you’ll always have to provide a signature to agree to the currency exchange’s fees and conditions. If you only notice that you are getting ripped off after you signed, there is almost no way to get your money back. This is how I once paid twelve Dollars in interest fees to only exchange 40 Dollars. What a rip-off!

So look up the exchange rate and read the fine print of the terms of conditions before signing! Also, keep in mind that currency exchanges at airports are almost always more expensive than in town.

Choose the right ATM for withdrawals

Most banks charge a fee for withdrawals with foreign cards, which is an annoying expense when travelling Southeast Asia on a budget!

While some of them charge a percentage of the amount you withdraw, many ATMs charge a plain fee for each withdrawal. So inform yourself about the best ATMs for foreign cards in the country you are travelling in.

Besides this, you should also check in with your local bank from home. Many banks have collaborations with international banks and ATMs. This can greatly reduce your costs on ATM withdrawals. Otherwise, your bank may charge you a fee for taking out money abroad as well.

If you’re travelling with a partner and you both use different banks at home, find out which bank is more advantageous for taking out money abroad. If your bank charges you a fee for taking out money abroad, but the bank of your partner doesn’t, transfer money to your partner and let him or her take out the money for you. This way you can easily save money on annoying ATM fees and stay within your backpacking budget.

8. Travel during the off-season!

If you are going to Southeast Asia for a few weeks or even months, you should consider travelling during the off-season.

Obviously, you’re seeking good weather if you are on a two-week trip or on a short holiday. If this is the case, it’s probably better to travel during peak season when the weather is at its best. But if you are backpacking through Southeast Asia on a budget for a longer period of time, you’ll find that travelling during the off-season has its benefits as well.

During the rainy season or the transitional months, far fewer tourists make their way to this part of the world. So, you will avoid the big crowds and also the high prices that are catered towards tourists. With fewer people during the off-season, the prices go down as well!

This is why travelling during the off-season can save you a lot of money. And don’t be thrown off by the rainy season; while it rains more often during these months, you’ll still experience sunny days as well!

9. Don’t rush it!

If you want to travel Southeast Asia on a budget, don’t rush it (as long as your schedule allows it). Because jumping from place to place can be expensive.

But if you stay several days or even weeks at a time in one place, you will often get better prices. This is because you will get to know the real prices and know what’s a fair price and what’s not – which will prevent getting ripped off.

Tip: You can often negotiate a better price for accommodations if you stay for several days at a time instead of just a night or two.

And most importantly, you’ll actually get to see more! Yes, this may sound contradicting, but you will see more if you travel less! If you jump from place to place, you will only scratch the surface of what a place has to offer.

But if you stay in one place for a longer period of time, you will be able to explore the place and its surrounding area thoroughly. This means you will be able to see things most travellers don’t get to see; you will be able to explore the hidden secrets of a place and make friends with locals!

For this reason, travelling slowly will not only benefit you if you want to travel Southeast Asia on a budget but also if you want to dive into the culture and explore off the beaten path!

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